12 Reasons You Should Invest in Cambodia Real Estate
Cambodia has always been one of the foremost attractions in the world because of its Angkor Wat. Furthermore, there are many various reasons Angkor Wat brings in so much money to Cambodia’s real estate. Here are some points to bear in mind if you are interested in Cambodia’s real estate.
Real estate in Cambodia is growing, adding to the economy. That’s why Cambodia is known as a land for real estate investors. Numerous foreign investors come from abroad to invest in the real estate market in Cambodia. Even some international businesses started to open their businesses there.
1. A Politically Stable Country
Cambodia’s government is focusing on ensuring the stability of its politics. The MPs, ministers, and other authorities are working together in an effort to advance this Southeast Asian nation. Nowadays, Cambodia is a fast-expanding economy region. Here, you can enjoy a wide range of public and private sector services.
2. GDP Growth
Cambodia has seen the course of its long-term economic growth significantly improve over the past few years, overtaking its neighbours. The GDP growth rate of the country is 7.1 % (as of 2019).
A booming economy is necessary to have a sound real estate sector. That’s where Cambodia ‘s economy is flourishing. The GDP of this country skyrocketed by 6.9% last year. It has been many years devoid of the nation encountering a financial crisis.
3. Land Price Is Rising
Cambodia’s real estate market has been steadily growing in recent times, and it will only increase in popularity in the coming year. This is due to the fact that the increase in property values represents a growing demand for real estate. For this reason, foreign and domestic investors are flocking to Cambodia to take advantage of the available real estate.
4. Property Ownership
Foreigners can own a property on the 1st floor or above in a condominium or apartment, and a real estate certificate must be obtained from authorities when holding ownership property.
A foreign national who has enrolled in a Cambodian hospital proceeding (legal) may own up to 49% of their property if they are in partnership with a Cambodian citizen who has more than 51% of Cambodian shares.
5. Dollarized Economy
The US-China trade war impacted the global economic picture a lot. And that’s where Cambodia was highly benefited. China started to rely on this country as a trading base. Consequently, Cambodia can develop its power as an exporter. Since then, the dollar economy of this country has been creating a sense of security for real estate investors. It denotes a stable monetary policy.
6. Strategic Location
Well, the strategic location of this country has turned it into a desirable location for foreign investors. Vietnam, Thailand are sharing their land and sea border together with Cambodia, and this country is also nearby India, China, and the fastest growing economies.
7. Improved Transportation Facility
In this country, all the key roads and bridges linked to neighbouring countries have been upgraded. The rail system has also been improved a lot. The government is collaborating with China to expand and modernise the seaport. This country already has three international airports.
8. Presence of International Groups
Real estate companies in Cambodia are investing a large part of their capital in real estate. A major international school situated in Phnom Penh is expanding its grounds, too. Cambodia is currently a member of WTO and ASEAN. Additionally, it’s a part of the One Belt One Road project.
9. The Best Investment Destination
According to Bloomberg, China is going to continue investing more and more in Cambodia real estate. In addition, several companies from other countries are interested in Cambodian real estate. In 2018, China invested somewhere in the vicinity of $7 billion for creating various projects and infrastructure.
10. Tourism Is Growing
Cambodia is very ambitious in its efforts to make a tourist-friendly country. Cambodia’s government still puts plenty of resources into making this country appealing for tourists. In Phnom Penh, you’ll no doubt discover a significant cluster of fashionable villas available to rent. On a positive note, Cambodia is expecting 12 million tourists by 2025. And a lot more tourists would understand the Cambodia real estate market.
Based on the tourism statistics report of December 2019, the top 10 visitors from Bochum were China (ranked first), Vietnam, Thailand, Korea, the USA, Japan, Malaysia, France and the United Kingdom. In Cambodia, the international business trips went up 100% in 2019.
11. Property Taxes
Following the Cambodian property tax structure, only 0.1% of the properties that have worth over $100 million KHR ($25,000) are subject to tax. This makes investing easy for investors in Cambodia.
12. Young Population
Despite having an average age of 27 years old, the young population also contributes to Cambodia’s economic development. Cambodia, as the Southeast Asian nation with the greatest labour force rate, also attracts a number of foreign investors from mainland China, Hong Kong, and Singapore due to its low labour cost.