Kyrenia, Korshiyaka street, Özyalçin 192 complexPark Heights Square 1, Dubai, UAE69, 67 1 Soi Kokyang, Rawai, Muang, PhuketGrand condo 7, Chroy Changvar, Phnom PenhJl. Dukuh Indah No. 606, Bali 80361, Indonesia1 Sherifa Khimshiashvili Str., BatumiÇağlayan Mahallesi, Barınaklar Bulvarı 5, 07235St. Petersburg, Moika River embankment 36, office 18C/El Montículo 8, 29631, Benalmádena, SpainHungary, Budapest, Merleg St. 12Pulawska Street 17, Warsaw10b Trg Dara Petkovića, Tivat, MontenegroJacques Chirac st., Al Saadiyat Island, Abu DhabiBelgrad, Vidovdanska 3, lokal 2Kazakhstan, Astana, Turkestan str. 14 AJacques Chirac st., Al Saadiyat Island, Abu Dhabi277 Cityview Drive, unit 16 Vaughan, Ontario.
EN 
RU 
DE 
PL 
NL 
ES 
FR 
IT 
TR 
AR 
ZH 
UK 
CS 
PT 
SV 
FI 
DA 
NB 
LV 
LT 
HU 
RO 
BG 
SL 
Real Estate Specialist
Date: 09.12.2024
Reading time: 10 min.
Views: 156Cambodia is a country that has attracted the attention of investors from all over the world in recent years. Investment in Cambodian real estate is becoming increasingly popular, and this is not accidental. The dynamics of economic growth, stable political situation and infrastructure development create excellent conditions for investment. In this article, we will look at why 2024 is the ideal time to buy real estate in Cambodia and what opportunities are open to foreign investors.
Economic situation and its impact on the real estate market
Cambodia has an impressive economic growth rate. In recent years, the country has consistently shown GDP growth at the level of 7% per year. This creates an excellent environment for investment. For example, in 2022, GDP grew by 7,5%This increase in economic activity has attracted the attention of both local and foreign investors. This increase in economic activity has attracted the attention of both local and foreign investors.
Infrastructure development - another important factor contributing to the growth of the real estate market. The government is actively investing in the construction of roads, airports and ports. For example, the new international airport in Siem Reap, which is planned to open in 2025These initiatives create new investment opportunities and make Cambodia more attractive for business. Such initiatives create new investment opportunities and make Cambodia more attractive for business.
In addition, Cambodian law is becoming increasingly friendly for foreign investors. In recent years, the government has adopted a number of changes aimed at simplifying the real estate purchase process. Foreigners can now purchase apartments and condominiums up to 70% of the total area buildings. This significantly increases investment opportunities and creates a stable legal framework to protect the interests of investors.
Tourism boom
We shouldn't forget about travel boomwhich covers Cambodia. According to statistics, in 2019, the country was visited by more than 6 million touristsand these numbers continue to grow. Siem Reap, Phnom Penh and Sihanoukville have become popular destinations for travelers from around the world. В 2022.Despite the pandemic, Cambodia has been able to attract about 3 million touristsThis indicates that the sector is recovering and has great potential.
As the number of tourists increases, so does the hotel real estate demand. Many investors see this as a great income opportunity. For example, hotel real estate in Sihanoukville can generate income of up to 12% p.a. in the high season. This makes such investments particularly attractive for those looking to income property in Cambodia.
So, if you are thinking about investing in real estate, now is the time. Let's take a closer look at what types of properties are available for investment and what they have to offer.
Types of real estate for investment
When it comes to real estate in Cambodia, the choices are truly vast. Investors can consider different options, depending on their goals and budget. Let's take a closer look at the most popular types of real estate for investment.
Residential properties
Residential real estate is a great option for those who want a steady rental income. In Phnom Penh, for example, you can find apartments with prices starting from $1,500 per square meter. Rents for such apartments range from $300 to $600 per monthDepending on the location and amenities. It is quite affordable compared to other Asian capitals. The new apartment complexes offer modern amenities and are located in the city center, making them attractive to tenants. It is important to note that the demand for rentals in the capital is on the rise, which provides a steady income for owners.
Commercial real estate
If you are interested in higher income, it is worth looking at commercial real estate. Office buildings and shopping centers in Cambodia are becoming more and more in demand. For example, new business centers are opening in Phnom Penh, which attract international companies. Investors can expect returns in the range of 6-8% p.a. from leasing commercial space. Offices can cost from $1,200 per square meterand commercial real estate rentals from $10 to $25 per square meter per month. It is a good option for those who want to diversify their investments and get higher returns.
- Cambodia
Resort real estate
Resort real estate is another segment worth considering. Sihanoukville, known for its beaches and entertainment venues, has become a real mecca for tourists. Villas and hotels here can cost from $300,000but potential rental yields can be as high as 12% in high season. Resort rentals can range from $1,000 to $3,000 per monthDepending on the location and level of service. Investing in resort real estate not only brings income, but also gives you the opportunity to enjoy your vacation at your own resort.
Earth
One should not forget about buying land. In some provinces of Cambodia, the price of land starts from $30 per square meter. This is a great opportunity for a long-term investment, especially if you plan to develop the project in the future. As the population increases and the economy grows, land values will only increase. Land rents can range from $0.50 to $2 per square meter per monthdepending on the region and conditions.
Legislative aspects
Now let's discuss legislative aspectsregarding real estate investment in Cambodia. It is important for foreign investors to know that they can purchase apartments and condominiumsHowever, there are certain restrictions. For example, foreigners may own up to 70% of the total floor area of the buildingwhich creates buying and co-investment opportunities.
As for landsThe situation is a bit more complicated. Foreigners cannot directly own land in Cambodia, but there is the possibility of long-term leasewhich can reach 99 years. This allows investors to provide themselves with stability and protection for their investments, as well as to plan for long-term projects.
In addition, the Cambodian government is actively working to improve legislation to attract more foreign investment. Recent changes have simplified the process real estate registrationwhich makes it more transparent and accessible to investors. For example, registration can now be completed within a few days, which significantly speeds up the purchase process.
It is also worth noting that the government is introducing new initiatives aimed at protecting the rights of foreign investors. This creates a safer and more attractive environment for investments.
Now that we've covered the main aspects of the legislation, let's talk about risksrelated to real estate investment in Cambodia.
Main risks of investing
As with any other market, real estate investment in Cambodia comes with certain risks that are important to consider. The most significant of these are the political situation, restrictions on foreigners and seasonal fluctuations in rental income.
| Risk | Description | Important information |
|---|---|---|
| Political situation | Cambodia faces political challenges that could affect the real estate market. Investors should follow the news closely. | The 2020 election has caused investor anxiety, but the government is actively supporting economic development. |
| Restrictions for foreigners | There are certain rules that can make it difficult to buy real estate. For example, foreigners cannot own land directly. | Long-term ground leases can be as long as 99 years, but it is important to consult a lawyer to avoid problems. |
| Seasonal fluctuations in rental income | Return on investment may vary depending on the season. In tourist regions, the high season brings a significant return, while in the low season it decreases significantly. | During the low season, hotel occupancy rates can drop to 40%, significantly reducing overall revenue. |
This table highlights the main risks associated with real estate investment in Cambodia and provides important information for potential investors to make informed decisions.
Forecasts and prospects of real estate market development
Despite the above risks, the real estate market in Cambodia has many prospects. Government programs aimed at the development of infrastructures and attracting foreign investment, create a positive background for further growth. For example, within the framework of the program "2025 Vision." The government plans to improve the transportation network and create new economic zoneswhich will certainly have a positive impact on the real estate market.
In addition, the growing interest of foreign investors from China, Europe and Russia is also contributing to the development of the sector. Cambodia is becoming increasingly popular among those looking for new investment opportunities. This creates competition in the market and, as a result, contributes to the price increase on real estate in major cities and resort areas.
The potential for price growth in Cambodia seems promising. For example, Phnom Penh and Sihanoukville have seen active construction of new residential and commercial developments, indicating a growing interest in these regions. Investors who enter the market now can capitalize on future price and demand growth. It is expected that over the next five years, real estate values could increase by 15-20%especially in popular tourist areas.
In addition, the development of tourism infrastructure and the increasing number of international events in the country also contribute to the growing interest in real estate. For example, new hotels and resorts under construction in Sihanoukville are not only attracting the attention of tourists, but also investors looking to generate rental income.
Conclusions and recommendations for investors
In conclusion, the investment in Cambodian real estate represent a tempting opportunity for those who want to receive a stable income and take advantage of growth prospects. Let's summarize the results and highlight the main advantages that make this market attractive for investors.
The main pros of investing in Cambodian real estate
- Economic growth: Cambodia's GDP growth has been stable, creating a favorable environment for business and investment.
- Developed infrastructure: Active investments in roads, airports and ports are making the country more accessible and attractive to tourists and businessmen.
- High rental yield: The possibility of receiving yields of up to 12% per annum from hotel real estate and up to 8% from residential real estate makes investments particularly attractive.
- Affordable prices: The cost of real estate in Cambodia remains relatively low compared to other countries in the region, opening up opportunities for profitable investments.
- Support for foreign investors: Legislative changes aimed at simplifying the process of buying real estate make the market more open and understandable for foreign investors.
Practical tips for site selection
- Location: When choosing a property, pay attention to its location. The city center or proximity to tourist attractions significantly increases the chances of a successful rental.
- Property type: Determine which type of property fits your goals: residential, commercial or resort. Each has its pros and cons, so it is important to assess your needs and capabilities.
- Research the market: Don't forget to do market research and keep an eye on prices. This will help you find favorable offers and avoid overpayments.
Why now is the optimal time to invest
With all of the above factors in mind, it is safe to say that now is the perfect time to invest in Cambodia real estate. The market is booming and by taking advantage of current opportunities, you can significantly increase your assets in the future.
If you would like to learn more about real estate investment opportunities in Cambodia or for advice on specific properties, feel free to contact our team of experts. We are ready to help you make the right choice and guide you through every step of the real estate purchase process.
For more information, please contact us at the phone number or email listed on the website. We will be happy to answer all your questions and help you start your investment journey to Cambodia.
The most popular property types include residential (apartments and houses), commercial (offices and shopping centers), resort (villas and hotels) and land for long-term investments.
The average price of apartments in Phnom Penh starts at $1,500 per square meter, while commercial property values can vary depending on the location and condition of the property.
Residential properties can yield up to 6-8% per annum, while hotel properties in popular tourist areas can yield up to 12% in high season.
Major risks include political instability, restrictions on foreign investors and seasonal fluctuations in rental income.
Foreigners cannot directly own the land, but can sign a long-term lease for up to 99 years, allowing them to secure their investment.
Infrastructure development, such as new roads and airports, makes regions more accessible and attractive to investors and tourists, which in turn increases demand for real estate.
The growing number of tourists in Cambodia is increasing the demand for hotel and resort properties, which creates opportunities for stable rental income.
With economic growth and increased interest from foreign investors, it is predicted that real estate prices in major cities and resort areas will continue to rise.
It is important to pay attention to location, property type, current market conditions and potential returns. Research the market and consult with experts to make an informed choice.
