TL;DR: The biggest red flags in Cambodia's property market are promises of 15–20% guaranteed returns, developers with no completed projects, leasehold schemes involving unknown local partners holding 51%, and false claims about citizenship-by-purchase. Real net yields range from 4–8% per year.
Why '15–20% Guaranteed Returns' Is a Red Flag
The most common hook used in Cambodia real estate scams is advertising "guaranteed profit of 15–20% per year." Experienced professionals on the ground call these numbers simply untrue.
Realistic market figures (2025–2026):
- Annual capital appreciation: 6–7%
- Net rental income after taxes and management: 4–5% per year
- GRR (Guaranteed Rental Return) written into contract: up to 8% — the honest ceiling
If a seller quotes figures above 8% verbally without a contract to back it up, walk away.
Another common lie: "buy a condo and get citizenship." There is no citizenship-by-real-estate-investment program in Cambodia. This is a marketing fiction with no legal basis.
Developer With No Completed Projects: The Biggest Risk Signal
A developer offering an off-plan property with zero completed buildings in their portfolio is a serious warning sign. Post-COVID Sihanoukville showed exactly what happens: dozens of abandoned construction sites, frozen projects, and investors who lost everything.
How to vet a developer:
- Request addresses of at least 3–5 completed projects.
- Visit them in person, or ask a local contact to do so.
- Talk to actual residents — ask about management quality and build quality.
- Compare the originally promised handover date with the actual delivery date.
If the developer hesitates to share this information, that itself is your answer.
Leasehold With an Unknown Local Partner: A High-Risk Structure
Foreigners cannot own land in Cambodia directly. One workaround is registering the property under a Cambodian national (51%) with a notarized "transfer" of rights to the foreign buyer.
The risk is clear: the local partner is an individual whose intentions can change at any time. Courts will side with the person named on the title deed.
The safer alternative is a leasehold structure where the developer itself acts as the local partner — a registered legal entity. A 50+50 year lease agreement with a corporate entity offers far stronger legal protection than one with an individual you've met once. These structures exist, including in Siem Reap, starting from around $70,000.
How to Verify an Agent or Broker in 10 Minutes
A common confusion: an agent holding a developer's license is not the same as an agency employee. These are different legal statuses with different accountability.
Verification steps:
- Agent claims to represent the developer → ask to see the developer's license.
- Agent says they work for an agency → request documentation of employment or official partnership.
- Email the agency's official address directly: "Does [name] work for you, and in what capacity?"
A key fact about pricing: buying directly from the developer is not cheaper than going through a broker. Developers maintain a fixed price list for all buyers. A broker, however, can arrange a free investment tour and manage due diligence — things a developer's sales team typically won't offer.
Quick Reference: Red Flag Checklist
| Red Flag | Why It's Dangerous |
|---|---|
| 15–20% "guaranteed" returns | Doesn't reflect the market; worthless without a contract |
| No completed projects from the developer | High risk of construction freeze |
| Leasehold under an individual local partner (51%) | No legal protection in a dispute |
| "Citizenship for buying an apartment" | No such program exists |
| Sihanoukville property without freehold title | Freehold is rare there — always verify |
| History of delays on prior projects | High likelihood of recurrence |
FAQ
Q: What is the realistic rental yield from Cambodia property? A: Net yield after taxes and management costs is 4–5% per year. GRR written into a contract can reach 8%. Numbers above this have no legal backing.
Q: Is there a citizenship-by-investment program through real estate in Cambodia? A: No. Cambodia does not offer direct citizenship in exchange for buying residential property. Any such claim is a sales tactic with no legal foundation.
Q: How many completed projects should a trustworthy developer have? A: At least 3, ideally 5–6. What matters is not just the number, but whether you can physically visit those buildings and speak with residents.
Q: Is it cheaper to buy directly from a developer than through a broker? A: The price is the same — developers use fixed price lists. Brokers add value through investment tours, transaction support, and market expertise that a developer's sales office doesn't provide.
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