12 Reasons to Invest in Cambodia Real Estate

Located on the South Indochina Peninsula in Southeast Asia, Real Estate Cambodia has undergone tremendous transformation from a least developed country to a large urban population due to massive development and improvement in various fields.

The factors contributing to this growth are mainly the pro-business policies of the government which lead to the influx of foreign investors in various business sectors such as:

l Offices / Commercial Market

l Residential & Housing Market

l Retail Market

l Industrial Market

l Agricultural Market

l Tourism

  1. Strong GDP Growth

Cambodia Real Estate Market thriving tourism and textile industries have played a key role in boosting the country’s GDP. Cambodia’s economy has been growing steadily at 7% of GDP since 2011, the highest in the region.

  1. Rising Land Prices

The Cambodian property market has been booming since legislation on foreign property. Land and property prices in Cambodia continue to rise in Phnom Penh, turning the country’s emerging economy into one of the largest investors’ economies.

  1. Freehold Foreign Property Ownership

However, with certain restrictions: Foreigners are not allowed to buy any property on the ground. Foreigners can only own up to 70% of any apartment building on the second floor or higher, provided that the building has acquired a “straw title”, which is typically new condominium buildings.

  1. US Dollar Economy

Although the Cambodian Rail is Cambodia’s official currency, the US dollar is generally used for all major day-to-day transactions such as business transactions, investments and even the sale or purchase of Property in Cambodia.

  1. Political Stability

Although the Cambodian Rail is the official currency of Cambodia, the US dollar is usually used for all major day-to-day transactions such as business transactions, investments and even the sale or purchase of property in Cambodia.

  1. Strategic Location

Real Estate Cambodia is strategically sandwiched between two strong economies in ASEAN, and Thailand. And halfway between the world’s two largest and fastest growing economies, China and India. And it is also located between Australia and Asia, with trade agreements that link it to both countries.

  1. Last Frontier Market

Owning Property in Cambodia is still very cheap. A state-of-the-art condominium property in the Cambodian city of Sanam has an average price of approximately US 3 3,250 per square meter, compared to a property in the city center of Singapore that is commanded by the average US commander. $ 21,528 per square meter.

Although Cambodian property prices have risen over the past few years, these figures are still much lower than the global average. The Cambodian property market is booming and is unlikely to take a different path in the coming years.

8. IT’S ONE OF THE FEW SANE INVESTMENT MARKETS IN SOUTHEAST ASIA

I am a big fan of Southeast Asia. Business culture, opportunity, weather. That’s why I set up a base in Kuala Lumpur, Malaysia. I wanted to be close to the action, as well as have easy access to other emerging hotspots such as flights to China, the Middle East and Africa.

I also believe in doing business in Southeast Asia. The sky’s the limit here. Sadly, the same business-friendly Asian culture that I love so much is also a big fan of real estate investing. And it has created some bubbles.

You see, historically, Asian governments have been oppressive. Economic freedom has not seen its bright days in Asia. The hard working people here have saved their money and do not have to rely on banks or other savings strategies that can allow the government to get their hands on the money.

  1. REAL ESTATE RENOVATION AND FLIPPING IS STILL POSSIBLE

As a conservative cash flow investor, I have never been a big supporter of “fix and flip”. It often comes under the banner of “If this sounds great” However, as a frontier market, Cambodia still has a lot of properties that need to be renovated.

Sure, these properties can be rented for $ 100, $ 200, or even $ 400 a month, but the trend is to hire foreigners working in the oil and gas, finance, and other growing industries for 1. , 000 and even increasing to 2,000.

Phnom Penh may be a popular place for back bakers who are getting out of the crowd but it also doubles as a new boom market where people rely too much on properties in ready-made conditions.

  1. TOURISM IN CAMBODIA IS GROWING

Again, as a cash flow investor, I would love to see some money back before the sale. I don’t subscribe to the mantra that “real estate never goes down” no matter how passionate I am in an area. Although I’ve made good money selling real estate before, I never praise my only sport.

For me, the best way to get solid productivity is through tourism real estate. I sketched out this drama last year when I talked about buying foreign real estate just to rent on Airbnb.

11. INTERNATIONAL GROUPS ARE LOCATING HERE

In addition to oil companies such as Chevron, which do profit-sharing deals with the government, a large number of international real estate companies, Chinese restaurants and other companies are setting up shops here.

Part of this is Vietnamese gamblers crossing the border for cheap. And part of that is the growing number of well-paid people, going back to the days when people working in NGOs were just white people you would see.

12. FOREIGN REAL ESTATE BENEFITS ON STEROIDS

If you have ever wondered how your government can help put money into an offshore bank account at any time, consider how difficult it would be for them to negotiate with a Cambodian court over the property. Forcing sales that they don’t.

Of course, there are those who say that there is a bubble in property prices.

However, if you live in the West, investing in Real Estate in Cambodia is different from your past experiences. Adaptation is the most important financial survival technique when I participate in what I call the “new boom market” of the world.