With foreign direct investment (FDI) come foreigners. Now that Cambodia, Laos, Myanmar and Vietnam (CLMV) are attracting large inflows of investment in factories and other business operations, more expatriates are arriving, and many of them want to invest in a home.

Yet, foreign investment in property tends to be a sensitive issue all around the world, especially in developing countries. So it's not surprising that throughout CLMV, foreign nationals can be subject to ownership limits and are barred from owning land on a freehold basis, ie, outright ownership in perpetuity. But bear in mind that freehold possession of land is not allowed even to citizens in Laos, Myanmar and Vietnam, where policy establishes the state as the owner of all land.

Ownership in this region thus, usually means a long-term leasehold. Lease terms are workable for most purposes, and a few ownership limits might ease in the years ahead, perhaps as part of government efforts to sweeten existing incentives for FDI.

After all, foreign capital is the engine of economic growth in these countries, which saw an average annual rise in FDI of 9.2% from 2010-2013. Myanmar led the race at 35.8%, followed by Cambodia's 22.3% and Laos at 15.2%, with Vietnam lagging at 2.6%. Foreign investors in CLMV business operations are attracted by low labour costs and abundant land and resources. Fast-growing local markets are also FDI magnets, given very high rates of GDP growth here.

Whether property laws change or not, the influx of international direct investors and expatriate employees is likely to encourage local developers to create more residential offerings targeting their needs. Foreigners looking for a home should thus bear in mind the various property rules that apply throughout CLMV, as described below: Cambodia, unlike its three CLMV counterparts, has adopted a freehold land ownership system for citizens.

Foreigners are allowed to lease property for a residence in certain buildings under the 2010 Law on the Provision of Ownership Rights. But these buildings must have registered and obtained a "strata title", which in effect is limited to newly completed apartment buildings. Foreigners cannot acquire a ground-floor unit, and foreign ownership is limited to a maximum of 70% of the units in any one building. The lease term can be up to 50 years, with an option to renew for another 50 years.

In Laos, the constitution declares that land is owned by the "national community", which means than no individual or entity, whether Laotian or foreign, may own land. The state grants land-use rights to individuals or entities, and these rights are transferable and heritable. Citizens may obtain a lease of up to 30 years. Interestingly, the state will grant a lease or land concession of up to 50 years to foreign individuals or foreign-invested companies, generally for large investments.

Foreigners are entitled to own any structure or building, such as a house, that they build on land they lease. But any structures affixed to land revert to the lessor or the state with no compensation when the lease ends.

Myanmar's constitution establishes the state as the ultimate owner of all land. Citizens are permitted rights to use and occupy land, and these usage rights are permanent, transferable and heritable. Foreigners have no right to purchase or own property or land but can obtain land-use rights. Under the new Foreign Investment Law, any foreign investor may lease land for a term of up to 50 years, which is eligible for two continuous extensions of 10 years each.

A longer lease may be permitted if a project is in remote or economically underdeveloped area. As for apartments, a draft version of the Condominium Law would allow a foreign individual to purchase a condominium on the sixth floor of a building or above, up to a limit of 40% of the total units in the property.

Foreigners would be allowed to undertake businesses related to residential property, such as development, sale or lease of apartments or condominiums, but only in a joint venture with a citizen. If this law is implemented as proposed, it might facilitate foreigners who wish to own a residence on a freehold basis.

In Vietnam, the land law permits more to foreigners than is the case elsewhere in CLMV, although freehold ownership is prohibited by the constitution. Land in Vietnam is owned by the citizenry and administered by the state on behalf of people. Vietnam has two types of property ownership: land-use rights and ownership of houses and assets attached to land. Land-use rights are granted by the state either by allocation, which requires an administrative decision, or by lease, which is a more routine procedure involving a contract. Only property development projects, such as housing estates and industrial estates, are granted land-use rights by allocation. As for leases, the period is between 50 and 70 years, renewable at the discretion of officials.

Under the Law of Housing 2014, a foreigner may own a unit in an apartment or condominium building, with a limit on foreign ownership in one building set at 30% of total units. A foreign individual may own a detached house, but a maximum of 250 houses in a single ward may be owned by foreigners, with leases limited to a maximum of 50 years. In some cases, a foreign individual married to a Vietnamese citizen may be allowed to own a house on a lasting basis.

Throughout CLMV, controversy has sometimes greeted proposals to relax restrictions on foreign ownership of property. Yet a few rules might be eased under certain conditions so as to boost FDI. Laos has considered offering land-use rights to any foreigner investing a minimum of $500,000 in equity in Laos. The rights would cover leasing of land for residential, office or other specific purposes, but the scheme has not yet been implemented. Myanmar would become easier if, as proposed, it allows foreigners to own upper-floor condo units.

Expats and foreign investors should keep up to date on changing ownership rules in CLMV so as to secure the right accommodation and explore new opportunities for investment or business operations. If rules are eased, companies that might benefit include developers, banks and providers of property-related services like maintenance and security.

Bear in mind that banking services have not yet boomed in these less developed countries, and few financial products are available. Only 27% of citizens in Asia's developing countries have a bank account. In Cambodia, the figure is just 5%. Thus the banking sector is poised for major growth, as providers roll out needed products like home loans. Mortgages are not yet in widespread use, and most home purchases continue to be transacted in cash.

The GDPs of Cambodia and Myanmar each grew 9.7% last year, while Vietnam's rose 8.8% and the GDP of Laos expanded a respectable 5.2%. The real estate sector will boom as well, with more and more leases likely to be sought by incoming foreigners.