Yula.la News

As of August 2020, under Article 132 of the Land Law No. 70/NA dated 21 June 2019, foreigners may now purchase individual units in condominiums or apartment buildings and obtain ownership rights similar to permanent land use rights including the right to sell, lease, and mortgage the unit for the lifespan of the building. 

The new Land Law arrives in time as Laos receives more foreign investment in the form of development projects. These projects, such as the Laos-China Railway, are anticipated to attract more foreign investors as Laos becomes a transit hub for goods and services traveling from China to the Indochina region and vice-versa. The new law, allowing foreigners to own property during the “lifespan” of the building,  helps set up this new investment environment and is likely to create opportunities for a surge in property development similar to neighboring countries like Cambodia and Vietnam.

The definition of “lifespan” as referred to in Article 132, however, remains unclear and we anticipate further guidance to be issued by the National Assembly and Ministry of Natural and Resources in due course.

Additionally, Article 131 allows foreign land developers to obtain limited ownership of land use rights over state land from the Government of the Lao PDR for a period of up to 50 years for the purpose of the development of condominiums, apartment buildings, or other residential or commercial complexes. The amended Land Law can be found on the Ministry of Justice’s official gazette.

According to the Lao National Chamber of Commerce and Industry, allowing foreigners to obtain ownership rights will help advance Laos’ economic growth and support development in the real estate sector.

James Whitehead, CEO of Yula.la, welcomes the new law as Laos is poised for continued growth, especially in real estate. “As the urbanization rates rise in Laos, there will be a need for more residential options to meet the demands of the emerging middle class”, he said.

He further emphasized the Laos property market’s potential to grow exponentially in the next decade, saying “We could see similar growth based on the trends in Thailand, Vietnam, and most recently, Cambodia, once residential property developers provide quality offerings alongside favorable financing assistance.”

Laos, over the years, has become an emerging investment hub for commercial and residential projects. The government has implemented significant reforms in recent years to attract and support foreign direct investment and strengthen trade partnerships within the ASEAN region.

“ASEAN market trends indicate that if Laos’ property market continues to expand, the demand for apartments and condominiums will increase and strong interest from regional property investment funds and real estate investors are to be anticipated,” said James Whitehead.

Looking to purchase or lease land and real estate properties? Check out thousands of properties and contact us here to get the best range of properties throughout Laos. 

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