For the last couple of years, the real estate market in Cambodia has been booming. It is one of the best performing sectors in the country, which has contributed greatly to the country’s escalating economy. One of the premier and fastest-growing economies in Asia, the country is considered a paradise for businesses and real estate investors.
The country is under the radar of foreign investors in many sectors – including the real estate business. Global companies like Toyota, Nike, and Samsung are setting up their operations in Cambodia. There is a high potential for real estate investors in the country – as foreign investment grew about 800% in the last ten years.
In this article, we will tell you the top 8 reasons why you should invest in the property business in Cambodia. We recommend you to read this article thoroughly and understand each reason so that you know how profitable it is to invest in Cambodia property.
1. Political Stability
The government of Cambodia along with the country’s establishment have made substantial efforts in recent years to make Cambodia a politically stable country. The members of the parliament, ministers, bureaucrats, and other national institutions work together in the best interest of the country.
As a result, Cambodia is becoming the fastest growing economy in Asia and people living here enjoy all sorts of public and private sector Amenities. In addition, the government of Cambodia under the leadership of Hun Sen is continuously making efforts to provide exceptional opportunities to both local and foreign businessmen.
2. Escalating GDP
From 1994 to 2016, the country’s GDP was 7.63%. In 2005, Cambodia’s GDP reached an all-time high of 13.30%. Key world economists have projected that the country’s GDP will grow high between 2019 and 2022. The estimation shows 7-10% in GDP. According to the World Bank report published recently, Cambodia has made significant growth in different sectors including construction, real estate, and garment industry – which today are the primary drivers of the country’s economy.
3. Rising Land Prices
In April 2010, the Cambodian government passed legislation on foreign property ownership. Since then, the property and real estate market has seen significant growth. The prices of land properties and buildings are increasing in the country – especially in the capital city of Phnom Penh. This is the reason thousands of foreigners are investing in the real estate market as well as thousands of others are seeing keen potential in the property market. So, the property market will boom further in the coming years.
4. Dollarized Economy
Cambodia has a largely dollarized economy, which means minimized risk for foreign exchange. The dollar economy of the country has created a sense of security for businessmen and foreign investors – particularly, in the real estate sector. This shows stable monetary policies and financial responsibilities.
5. Strategic Location
The strategic location of the country makes it a favorable destination for foreign investors. Booming economic countries like Thailand and Vietnam share land and sea borders with Cambodia. The country is also closed to two of the world’s largest and fastest-growing economies – China and India.
6. Improved Trade Integrations
Cambodia is a member of the World Trade Organization “WTO” since 2004. The country is also a key member of ASEAN – this provides stabilized regional trade benefits. The government of Cambodia and the department of trade also provides preferential export or duty-free access to most developed economies like China and the USA. The country is also the part of “One Belt One Road” project initiated by China.
7. Improved Transportations
The Cambodian government has upgraded all key road links and bridges with neighboring countries. The rehabilitation of the road system and the rail system has also been done. The government is collaborating with the country’s key strategic partners like China to modernize and expand the container seaport in Sihanoukville. Moreover, the government has opened three international airports.
8. Attractive investment destination
A recent report published by Bloomberg shows that China’s interest in Cambodia has brought over 200 investors from China and hundreds of large real estate companies from other parts of the world are investing in the Cambodia property market. In 2018, Chinese companies invested over 7 billion dollars in new projects – including a highway that will connect Cambodia’s capital city Phnom Penh to Sihanoukville.
Last but not least, Cambodia’s property market will continue to grow in the coming years with more and more investors coming to make great profits. Learn more about the world-class residential property with all types of luxurious features.
Author: EEO Invest