As one of the fastest-growing countries in Asia, Cambodia has the potential to expand its economics to a greater level. By this, it means the land values and real estate prices will keep increasing.
Foreign investment and domestic business had advanced Cambodia’s financial growth. Most of those investments included real estate. The dealing of real estate is undeniably one of the most attractive businesses in this kingdom. Citizens mostly sell or lease their residential real estate. However, foreign or larger company investments turn vacant land into commercial or industrial real estate.
Will real estate ever decrease in price? No, as long as the economy of that country keeps growing or remains stable.
Due to the COVID-19, the growing rate of the real estate business froze, and the price did not increase. However, from the investor’s point of view, this is a rare opportunity to buy at a low price.
There’s no fear in doing so because once the economy recovers, more investors will flow in and the real estate will resume its increasing price. Reasons to invest includes:
1. Economy growth
For the last two decades, Cambodia’s economy has escalated significantly with an immense transition within the country. Garment export and other foreign investments had contributed a lot in advancing this country to become one of the fastest economic growing countries in the world.
Since this country does not depend entirely on foreign capital, it has escaped many major recessions that the developed country suffered. However, there are many foreign investments that grew by 800% in the past decade.
The growth rate remains strong every year. This includes the growth of tourism, construction, trade, manufacturing, and the garment industry. The reason for this is because of the lower cost of labor and real estate price.
Although there are 25 provinces in Cambodia, Phnom Penh, the capital city, is the place where most of the trading and investment is located.
Siem Reap, on the other hand, is a land full of foreigners and tourism sites. Most of the investment there includes hotels, resorts, or other types of related hospitality.
Sihanouk Ville had a real estate boom two years ago due to the overflow of Chinese people. Properties including hotels, houses, lands, restaurants, resorts, and casinos were on demand.
The economic growth in other provinces can be seen as well.
2. Population growth
The population continues to grow for the past four decades. As the population rose rapidly, the need for houses and other types of residential real estate keeps increasing. Not only this, more immigrants and foreigners began to live in Cambodia. Therefore, more residential properties are needed.
3. Chinese investment and immigrants
Due to the overflow of Chinese citizens and investors in Cambodia, the economy took a good turn and leap forward. Roads and bridges have been constructed to provide better transportation. As an example, Sihanouk Ville became a province full of skyscrapers.
Chinese people who move to Cambodia need a place to live. They offer a higher price than locals. This is a motivation for developers to construct more properties and raise the price higher.
In addition to this, the recovery of COVID-19 will surely bring back the investment from Chinese investors.
4. Easy foreign investment
More than any other country in southeast Asian, this country encourages foreign investment. Low property tax and easy visas attract many foreigners to invest here. There are no trade restrictions, price controls, and foreign exchange regulations. It uses US Dollars as part of its currency which eliminates the risk when proceeding with the financial transaction.
This country doesn’t require investors to change their citizenship. In addition to this, they can own any property above land.
In conclusion
Since this country is a developing country, many aspects of investment are needed. As the population keeps growing, houses and other residential properties are required. This is a long-term plan and success because more people are starting to be interested in condominium and real estate investment. By saying one of the fastest-growing economic countries means that the real estate price investment and property value will increase at a very quick pace. Therefore, investing in Cambodia’s real estate surely is a win-win investment.
Why should I invest in Cambodia real estate?