There are a lot of factors to consider when you are buying rental properties, whether it’s for investment or for you to set down roots. One of these factors that are often overlooked is safety. This is why condominiums with 24 hours of security have high-selling points but if you are looking for other properties where it’s also secure, then you can check out properties in Borey developments.
What are Boreys?
Borey developments or simply “Borey” are gated communities developed by one registered construction company. Within the community, various properties can be found depending on the type of Borey it is like the following:
- Flat houses
- Linked houses
- Single villas
- Hybrid villas
- Twin villas
Most of the houses listed above are popular to Cambodians, making it an attractive real estate property to live or invest in. Additionally, the properties within Boreys—while they could be similar in type to each other—can still vary in terms of room, price, and square metre. Choosing which property to buy depends on the needs of investors like you.
Furthermore, public spaces within Boreys can include playgrounds, parks, markets, stores, or even gyms. Since Boreys have a 24 hour security similar to condominiums and other security measures, the safety of everyone living within the gated community is guaranteed.
Legality of Boreys: Two factors to consider
The popularity of Boreys in Cambodia has skyrocketed over the years, especially since supply increased. A report released by Knight Frank indicated that in 2018, there were only 126 Boreys in the country with 46,197 within it. By the second quarter of 2019, the Boreys increased to 131 with 51,278 units. Before you start looking for the right unit in a Borey for you in Cambodia, here are the top two things you need to consider:
When buying properties within Boreys in Cambodia, you can buy it using the following three types of ownership titles:
- Soft title → Common title granted in Cambodia where ownership is only recognised at a local government level.
- Hard title → One of the strongest forms of ownership titles in Cambodia, certified at a national level.
- LMAP → The Land Management Administration Project is the safest title to get when buying properties in Boreys since it determines the exact boundaries or land area of your property. This means it protects the entire agreed property area, classifying it as an immovable asset. An LMAP is certified at a national level as well as cadastral offices..
Borey’s legal documents
Since a Borey has to go through proper registration to be classified as one, there are a couple of documents you can check to see if the development you want to invest in has followed procedure:
- Hard titles
Borey developments need a hard title for the whole land or area where their community stands on. This is often referred to as the master title since within the Borey, all of the units there should have their own individual hard titles.
Check if the developer has both of the hard titles to ensure you’re buying into a safe development.
Take note though that some Boreys also offer soft titles when selling units within the community. This isn’t a problem since if there’s a master hard title, it means the Borey is legal and the developer can make a hard title for other units according to the Loan Staff of ACLEDA Bank, Cheng Soknov.
- Development Company Registration
The construction company or Borey developer needs to register as a Cambodian company prior to creating their own gated community. A company registration is necessary so make sure to check it as well.
Prior to the start of any construction in a Borey development, the Ministry of Land Management in Cambodia needs to approve the development’s Master Plan. If they get the approval, then they can proceed to getting a construction license. If you want to check if the Master Plan was approved, you can ask for the developer to show or give you a copy.
Following the approval of the Master Plan, a construction license is needed. The Ministry of Land Management conducts a thorough background inspection to see that only one construction company will be building the Borey, ensuring quality of the units within that development.
Finally, a Borey license is needed which can be received once the Ministry of Economics and Finance approves the development’s plans, documentations, and quality.
Should you buy a property in a Borey?
Suffice it to say, buying properties in a Borey in Cambodia is a great financial decision. Not only are you securing your safety, but you have a property where you can set down roots since it’s yours—from the actual unit to the land where the property is built on.
Additionally, the market for tenants looking for properties in Boreys have risen over the years, with a higher average of middle class citizens living in these communities. This means if you are planning to lease the real estate property you want to invest in, you have a sea of potential tenants at high gains.
Borey developments are often concentrated outside Phnom Penh since a large area is needed to develop a secure, gated community. Most of them are still close to the city with key attractions nearby so it would be easy for you to start finding the right Borey property you want to buy. If you need help finding one, search through the listings available here at IPS Cambodia! Find the right home for you now!