Patrice Sarda Patrice Sarda Laos also uses the communist form of land ownership; therefore the land belongs to the people and is controlled by the state, all very similar to Vietnam. The citizens are granted land use ownership rights but the system does not represent free simple ownership of land. Foreigners, as usual, are not allowed to own a land, but they are allowed to lease it for a length of 30 years.
Patrice Sarda There are some provisions made for the foreigners over the land lease, these include: The average duration of a lease is 30 years, but depending on the situation the term can be extended. Residential land lease has a maximum duration of 30 years but can be extended. For investment and business activities depending on the nation have a maximum lease period of 50 years and can also be extended.
Patrice Sarda Land leased to be used as part of an economic zone has a maximum of 75 years, sorry but it cannot be extended. 99 years is the maximum lease period of land use for diplomatic purposes and international organizations
Patrice Sarda Laos has an abundance of natural resources and Laos economy doing very well, and by even outgrowing its neighbors with an average growth of 8% yearly it is no wonder countries like China and Vietnam wants a piece of the Laos pie and trust me a lot of investments are coming in. although countries in the region might be getting the media attention, but Laos is getting the attention that matters the most, the foreign investors (those guys are just everywhere)
Patrice Sarda With the regulations in neighboring countries like China and Vietnam had a great effect on the Laos property market, the government has managed to keep the price increase quite slow in order to keep the market healthy by being less generous with housing loans and the stricter regulations to obtain loans in Vietnam and China have also helped.
Patrice Sarda Let's talk Vientiane for a little bit, Vientiane is the capital of Laos and this is where most of the economic activities are going on, and very soon it is the city that will be connected through a railway that stretches from China to Bangkok, that’s some major real estate business love letter. The population being the fastest growing for any capital in the region is expected to grow by 50% from 2015 to 2025. In this capital, the price for houses is about US $1000 per square meter.
Patrice Sarda The house prices in Paske are also about US $1000 on an average per square meter. Luang Prabang is a developing city located in the Northern parts, it has a population of around 60,000 people. “The Heart of Laotian culture�. Is a phrase that is usually used to describe the city and for good reasons. It has a lot of ancient artifacts, a beautiful nature and lots of tourists, it is no wonder it was listed by UNESCO as a world heritage in 1995.
Patrice Sarda Just like it is in Cambodia, many foreigners who invest in Laos plan to stay to for a couple of weeks or more. To find a suitable standard property to cater for the stay of foreigners is not usually easy, there is a claim that only 25% of the houses put up for lease to the foreigners are in livable conditions. The retirees also think that the buying process of a property in Laos is usually too complicated that they prefer to just lease a property.
Patrice Sarda All of these has led to an increase in demand for rental properties and this makes the rental yield pretty good. To rent a 3-bedroom house in the central areas, you need to pay an average of almost US $1000 and trust me this is comparatively high. So hurry now and get into the rental investments in Laos cause it is booming. Patrice Sarda Phuket