The Cambodian real estate market is expected to grow in the coming years, with several major infrastructure projects underway. This growth has been attributed to various factors, including government policies to attract foreign investment, increased urbanization, and a growing middle class. According to a report on Cambodia Real Estate by Investment Monitor, 15% of the total FDI is in the real estate sector in Cambodia.
Cambodia allows foreign property ownership, which is one of the main reasons why it is a hot market for real estate investment. According to the law, foreigners can purchase and own condominiums, apartments, and houses as long as the property is on the first floor or higher. They can also own land, but it must be done through a local company and under specific conditions. This law has increased the demand for properties in Cambodia among foreign investors. IPS Cambodia, a local and trustworthy real estate agent, can help you understand the nuances of the property ownership laws in Cambodia and help you make informed investment decisions. Investing in Cambodia real estate now is a wise move as the property prices are expected to rise further in the coming years.
This study shows that Cambodia is drawing mass attention from foreign investors in the real estate sector with the help of local, trustworthy, and rewarded real estate agents like IPS Cambodia. If you, too, want to invest in the Cambodian market, property experts at IPS Cambodia will guide you throughout the process.
Reasons for the Boom in Cambodia Real Estate Investment
Cambodia has grown to be the best real estate market in Southeast Asia. Some of the common reasons for the massive boom in the real estate investment industry include the following:
Strong Post-Pandemic Rebound
90% of the respondents believe buying property in Cambodia is a great option. They also considered the post-pandemic era the best time to invest here. Moreover, Cambodia was one of the fastest-growing economies globally before the pandemic struck. Apart from foreign investors, the middle class has a rising demand for properties. After the pandemic, many foreign investors returned to Cambodia as well.
Impressive Growth in GDP
In the past few years, Cambodia has observed good growth in GDP. The 3% GDP growth contributes to great economic improvement. This growth is said to be the highest among all ASEAN nations. Foreign Direct Investment contributes significantly to the growth of Cambodia. Moreover, they also have open investment laws and offer various incentives to investors.
The political situation of Cambodia is one of the main reasons many foreign investors are interested in investing here. The current prime minister of Cambodia represents the longest-ruling non-royal leader of South East Asia. Moreover, Cambodia ranks itself in the third position of political stability compared to the ASEAN nations.
The young population of Cambodia also has an important role in economic development. Cambodia’s labour force rate is the highest in Southeast Asian countries. Therefore, Cambodia has a zero unemployment rate and low labour costs. Hence, Singapore, China and Hong Kong investors are expanding their business in Cambodia.
Cambodia is between the three strong economies of ASEAN, Vietnam, Laos, and Thailand. Furthermore, it is also located close to the fastest-growing economies of the world, India and China. Cambodia will also be an essential part of the Southeast Asia network as it is a part of China’s Belt and Road Initiative. These factors would contribute to Cambodia’s growth, bringing several business opportunities.
US Dollar Economy & No Foreign Exchange Control
The official currency of Cambodia is Cambodian Riel. However, for significant daily transactions, the residents of Cambodia use US Dollars. They use it for investments, business dealings, and buying and selling properties. Cambodia is currently the only Southeast Asian country to use USD. Furthermore, no foreign exchange control in Cambodia allows the capital to enter and exit conveniently.
After retirement, everyone wants to visit a place where they can live comfortably and in luxury. Well, Cambodia is just where you need to be after retirement. Although the standard of living is high, the cost is low. This paves the way for leading a great lifestyle at cheaper and more affordable rates than other places worldwide. Apart from the financial aspect, other aspects that cater to Cambodia being a popular destination among retirees include great schools, exceptional health system, logistical connections, and growth in infrastructure.
Increasing Rental Price
As discussed above, the real estate market of Cambodia has seen massive growth in the past few years. It is often considered one of the highest jumps in the Asia-Pacific region. The rental prices are shooting up in Cambodia. Therefore, if you invest in Cambodia today and rent the property, you are likely to get a significant return on investments.
SEA Games- The Best Time to Invest
The Southeast Asian (SEA) games will be held in Cambodia in May 2023. It is a biennial multi-sport event that has participants from 11 Southeast Asian countries. With the coming of the SEA Games, the property market will likely observe a boom in Cambodia in the coming times. It will also see an influx of foreign investors. More factories are being set up, so more foreign workers are expected to enter the country. Therefore, the demand for rental properties would spring up.
The country’s favorable economic conditions, growing middle class, and foreign investment have led to a surge in demand for residential and commercial properties.
With its deep understanding of the market and range of services, IPS Cambodia is a leader in helping investors navigate the Cambodian real estate landscape. With a portfolio of properties, including apartments and villas to commercial spaces, IPS Cambodia is well positioned to assist investors looking to capitalize on this growing market. Connect with the property Experts now to grab the best deal on your foreign investments.