Why Invest Real Estate in Cambodia?

Cambodia has been one of the most important tourist attractions in the world for its Angkor Wat. Apart from the curiosity, a variety of additional variables generate the value of immobility in Cambodia. Some points on why you should invest in Cambodia real estate:

1.Strategic Placement

Cambodia has three strong ASEAN economies and also 2 of the world's largest and fastest expanding economy – China and India – located between Thailand, Vietnam and Laos.

Furthermore, Cambodia will become part of the Southeast Asia network as part of China's Belt and Road Initiative, therefore making its growth further enhanced and offering economic prospects.

2. Strong growth in GDP

Cambodia is on a stable track of economic improvement with consistent GDP growth of about 7 per cent in recent years (the GDP growth rate reached 7.1 per cent in 2019). The fast-growing ASEAN nations have the fastest rate of growth. In the Cambodian economy, both its industry and its services sector play an important role.

Foreign Direct Investment is the result of Cambodia's robust economic growth. The data shows, especially in the construction and immobiliary sectors FDI has expanded by more than 800 percent in the past ten years. Furthermore, the government has open investment rules and offers investors a variety of perks, including no visa limit, currency distinction, and freedom from taxation.

3. Young Population

The youth with an average age of 27 also play a major part in economic growth. Cambodia has a comparatively cheap labor costs and zero unemployment rate in Southeast Asia. Many international investors have sought to expand their business in Cambodia particularly from mainland China, Hong Kong and Singapore.

4.Tourism 

Tourism has become a major sector for Cambodia's economy in recent years. In 2019 a total of 6.6 percent grew to 6,610,592 international tourist arrivals. In the world-renowned Angkor Wat site in Siem Reap, Sihanoukville and Phnom Penh, its capital, its tourism sector is increasingly popular.

The top 10 tourists were from China (the highest), followed by Vietnam, Thailand, Korea, Japan, Malaysia, France and the United Kingdom, based on tourism statistical reports from December 2019. International business travel to Cambodia has risen by 100%.

With such rapid growth of tourists in recent years, Cambodia has gone through massive expansion plans to improve its infrastructure and its international airport.

5.US dollar economics and no control over foreign exchange

Although the official currency of Cambodia is Cambodia's Riel (roughly USD 1: Riel 4,101) the dollars are routinely utilized in all significant day-to-day activities, such as business, investment and even when selling or purchasing property in Cambodia. 

Cambodia is the world's third-largest country, with more than 80% of the country's currency being the only country in Southeast Asian to spend USD. There is also no regulation over foreign currencies, so that capital can be entered and existed at any time.

6.Freehold ownership of foreign property

The foreign ownership rules of Cambodia were just opened in 2010. From this point, stranded properties, e.g. condominium or apartment above the second level or a maximum of 70% of foreign quotas may be owned by foreigners free of charge by foreigners.

The quantity of investments is not restricted and foreigners are permitted to leave at any moment and sell them to anybody. The only setback is to prevent foreigners from owning land.

7.Property Price 

In comparison with China, Hong Kong, Singapore, property ownership is quite reasonable in Cambodia. An average Cambodian condominium cost of some US$ 2000 to 3,000 per square meter is transacted in the town center of Phnom Penh. 

Only one-third is transacted by other Asian countries. While property prices in Cambodia have risen in recent years, they are still comparatively inexpensive in comparison with the world average.

8.Growth and leases of capital

In the past few years, real estate in Cambodia has grown tremendously, one of the most important increases in the Asia-Pacific area. In Phnom Penh, Cambodia's principal capital increased to an average price of 15% due to robust economic growth and passage of foreign property law. Phnom Penh's land prices rose sharply from 2010 to 2018.

As the typical Phnom Penh rents are high at least 6 per cent to 8 per cent, the Phnom Penh is the biggest city in Cambodia is preferable to many Chinese, Singaporean, Taiwanese and Hong Kong. Therefore, significant upward developments are underway, particularly in the city center of the capital in particular.

Source : Compass Original