Popular cities for buying real estate in Cambodia: Phnom Penh, Sihanoukville, Siem Reap

Investing in real estate in Cambodia is becoming increasingly attractive to many. This country with its rich culture and rapidly growing economy offers unique investment opportunities. If you are thinking about buying an apartment in Sihanoukville, or want to know about the real estate market in Phnom Penh and Siem Reap, you have come to the right place.

In this article, we will look at three key cities in Cambodia:

• Phnom Penh - capital, where business opportunities and foreign investment are concentrated.
• Sihanoukville - A resort center that attracts tourists and investors with its coastline.
• Siem Reap - A cultural gem known for its historical monuments and tourist flow.

The purpose of this article is to help you understand which city is best suited for your investment goals based on the characteristics of each region. Ready to dive into the world of Cambodian real estate? Let's get started!

Phnom Penh: the capital of opportunity

The economic heart of Cambodia
Phnom Penh is not just the capital of Cambodia, but a real magnet for business and investment. The city is showing impressive growth, and start-ups are actively developing here, new companies are opening, and foreign investors are increasingly paying attention to this city every year. For example, my friend Sergei, who moved to Phnom Penh from Russia, has opened a small business producing eco-friendly packaging. He says that thanks to the support of local authorities and affordable office rental prices, his business is growing rapidly. More than 6,000 new companies are registered in Phnom Penh in 2022, indicating a growing interest in this market.

Demand for luxury and commercial housing in Phnom Penh is also on the rise. Many foreigners working in the city are looking for comfortable apartments where they can not only live but also do business. This creates excellent opportunities for investors looking to invest in the residential real estate market.

Residential real estate market
The residential real estate market in Phnom Penh is diverse and offers many options for investors:

• Apartment prices: Average apartment rates in Phnom Penh range from $1,500 to $4,000 per square meterDepending on the neighborhood and level of comfort. For example, in the city center, you can find stylish apartments with modern renovations that are ideal for renting. In neighborhoods such as Botum Wong, prices can reach the upper end of this range, while in more remote areas you can find lower-priced options.
• Rental housing: For those looking to rent, there are plenty of options. A one-bedroom apartment will cost you an average of $500-700 per month. In more upscale neighborhoods such as Tuk Mung, rentals can range from . $800 to $1,200 per month. This is a great opportunity for those who are planning a temporary stay or want to test out life in Cambodia before buying a property.

R&F CITY RESIDENTIAL COMPLEX

from $ 74,176

Phnom Penh, Cambodia

Time Square 302 Residential Complex

from $80,000

Phnom Penh, Cambodia

Time Square 306 Residential Complex

from $93,000

Phnom Penh, Cambodia

Vue Aston Residential Complex

from $87,665

Phnom Penh, Cambodia

Residential complex Park21 Residence

$80 556

Phnom Penh, Cambodia

Le Conde Residential Complex

from $94,538

Phnom Penh, Cambodia

• Suitable objectsIn Phnom Penh, you can find both new apartment complexes with developed infrastructure and older buildings that may require renovation. This gives you the opportunity to choose a property for any investment purpose, from long-term rental to resale after renovation.

Infrastructure and prospects
Phnom Penh is actively developing, and this cannot but please investors. The city is planning to build a metro, which will greatly simplify transportation around the city. It is expected that the first metro line will be launched in 2025, which will make transportation more accessible and convenient.

In addition, new airports and shopping centers open up additional business opportunities and increase the area's attractiveness to foreign tourists and residents. For example, a new international airport under construction in Chao Duc District is expected to open in 2023 and will significantly increase the flow of tourists to the city.

Forecasts for real estate price growth in Phnom Penh are also encouraging. Experts note that in the coming years, the cost of housing may increase by 10-15% depending on the neighborhood and the level of infrastructure development. This makes Cambodia's capital city an ideal place for long-term investment. Taking all these factors into account, Phnom Penh is an attractive market for those looking for real estate investment opportunities.

Sihanoukville: the center of resort real estate

Now let's move to Sihanoukville, where the sun shines brighter and the sea beckons with its blue. This city has become a real paradise for those who are looking for resort real estate. Sihanoukville is rapidly developing as a tourist center, and its popularity is growing every year. In 2022, the number of tourists visiting Sihanoukville has increased by 25% compared to the previous year, confirming its status as one of the most attractive resorts in Southeast Asia.

Rapidly developing port and active construction of hotels attract the attention of both local and foreign investors. My friend Alexei, who bought an apartment by the sea, tells me that his accommodation has become a real source of income thanks to renting. He receives a stable income, especially during the tourist season, when the demand for resort real estate is off the scale. For example, in the high season, his apartment rents out for $100-150 per daywhich allows him to recoup his investment in just a few months.

Real estate value
If you are thinking about buying real estate in Sihanoukville, resort apartment prices range from $1,200 to $3,000 per square meter. These are quite reasonable prices for such a picturesque place. Houses by the sea can be purchased from $150,000This makes them affordable for investors. For example, in the Oval neighborhood, which is famous for its beaches and developed infrastructure, you can find two-bedroom apartments for as little as $1,000 per month. $250,000.

Rental business in Sihanoukville also pays good dividends. High profitability during the tourist season can reach up to 10-12% p.a.. This is a great opportunity for those who want to invest in real estate and earn a steady rental income. It is important to note that during the low season the income may decrease, but many property owners compensate for this by offering discounts or special offers for long term rentals.

Infrastructure and development
Sihanoukville is actively developing its infrastructure, which makes it even more attractive to investors. New roads, shopping centers and entertainment complexes are being built in the city, improving the quality of life and attracting more tourists. For example, a new shopping center that opened last year has become a popular shopping and leisure destination for locals and tourists alike.

It is also worth noting that the Cambodian government actively supports the development of tourism infrastructure. As part of the program to improve tourist services in Sihanoukville, it is planned to build new hotels and resorts, which will create additional opportunities for investors.

With all these factors in mind, Sihanoukville is an attractive market for those looking for a resort property with the opportunity for a steady income. In the next installment, we will take a closer look at Siem Reap, its unique features and investment opportunities.

Siem Reap: cultural and tourist center

Now let's head to Siem Reap, a city that attracts tourists from all over the world due to its proximity to Angkor Wat, one of the most famous UNESCO monuments. Every year, more than 2 million tourists visit the area, and this creates a great opportunity for real estate investors. Not only is Angkor Wat a World Heritage Site, but it also attracts the attention of travelers who want to learn more about Cambodia's culture and history. This makes Siem Reap an ideal place to invest in hotel and tourism infrastructure.

Real estate market

As for the real estate market in Siem Reap, it offers a wide range of options. Hotels and boutique hotels can be purchased from $250,000This makes them affordable for investors wishing to enter this segment. In the city center you can find modern boutique hotels that offer comfortable rooms and a high level of service. For example, a hotel with 20 rooms can cost around $8,000 per room. $500,000which is reasonable given the potential income.

It is also worth paying attention to building land, which can be bought from $50 per square meter. This is a great opportunity for those who want to build their own hotel or residential complex. With the growing number of tourists, the demand for accommodation and hotels will only increase, making investment in land particularly attractive.

Rental income in Siem Reap is also impressive. Boutique hotels and guesthouses can generate revenue in 8-10% p.a.which makes this city attractive to investors. For example, if you buy a boutique hotel for $300,000you can expect to earn a rental income of approximately $24,000 per yearThis will allow you to recoup your investment within 12-15 years. High stability due to year-round tourism provides a reliable income stream, which is especially important in an unstable economy.

Potential investments in commercial real estate

Apart from hotel properties, Siem Reap offers many opportunities to invest in commercial real estate. Restaurants, cafes and souvenir stores are just a few of the options that can generate good income. An acquaintance of mine who opened a small restaurant with local cuisine says that his establishment has become popular with tourists and he is planning to expand. His restaurant, which is located in the city center, generates an income of approx. $5,000 per monthwhich makes it a very profitable investment.

With the growing number of tourists and increasing interest in the region, investing in commercial real estate can be a great solution for those looking for long-term prospects. For example, opening a souvenir store near Angkor Wat can provide a steady stream of customers, as many tourists are looking for unique gifts and memories of their visit.

Infrastructure and development

Siem Reap is actively developing its infrastructure, which makes it even more attractive to investors. New roads, shopping centers and entertainment complexes are being built in the city, which improves the quality of life and attracts more tourists. Projects to modernize the transport network are expected to be completed in the coming years, making access to key tourist attractions much easier.

It is also worth noting that the Cambodian government actively supports the development of tourism infrastructure. As part of the program to improve tourist services in Siem Reap, it is planned to build new hotels and resorts, which will create additional opportunities for investors. For example, a new international airport is planned to open in 2023, which will significantly increase the flow of tourists to the region and create new business opportunities.

With all these factors in mind, Siem Reap is an attractive market for those looking for a stable investment in hotel and commercial real estate.

Comparison of cities for investors

Now that we have covered the main features of Phnom Penh, Sihanoukville and Siem Reap, let's summarize and compare these cities. It is important to realize that each offers unique investment opportunities and the choice depends on your goals.

Each of these cities offers unique opportunities for investors. Phnom Penh is suitable for those looking for a stable long-term investment, Sihanoukville for those looking to capitalize on resort real estate, and Siem Reap for those interested in the hotel business and want to work with the tourist flow. The choice depends on your goals and preferences.

Key tips for investors

Now that you have familiarized yourself with Cambodia's key cities and their features, let's move on to practical tips to help you successfully invest in real estate. Investing is not only an opportunity to earn money, but also a huge responsibility. Here are a few guidelines to keep in mind.

How do you choose the right property?

The first thing to do is to clearly define your goals and budget. Ask yourself a few questions: do you want a steady rental income, or are you interested in long-term capital growth? If your priority is renting, it's worth looking at areas with high tourist traffic, such as Sihanoukville and Siem Reap. If you are looking for a stable investment, Phnom Penh with its developing economy would be an excellent choice.

Also, don't forget about location. Proximity to infrastructure such as stores, restaurants and public transportation can significantly increase the value of your property in the future.

What documents do I need to check?

Before buying real estate in Cambodia, it is important to check all documents thoroughly. Make sure that the seller has the right to sell and that the property is not encumbered by debt. Request all necessary documents, including certificates of ownership and building licenses if it is a commercial property.

It is also worth contacting a lawyer who specializes in real estate in Cambodia. He will help you understand the local laws and make the purchase process safer. For example, my friend Nicholas, who bought an apartment in Phnom Penh, told me that thanks to the help of a lawyer he managed to avoid many problems connected with the legal aspects of the transaction.

Recommendations for interaction with agents

Working with real estate agents can make the process of finding and buying a home much easier. However, it is important to choose a reliable and experienced professional. Check reviews, talk to previous clients and find out what properties they have offered.

Do not hesitate to ask questions. A good agent will always be ready to answer your queries and suggest options that meet your requirements. For example, when I was looking for an apartment in Sihanoukville, my agent offered me several properties that met my budget and expectations. This saved me a lot of time and nerves.

Cambodia is a country with great potential for real estate investment. Phnom Penh, Sihanoukville and Siem Reap offer unique opportunities for different types of investors. If you are looking for stability and development, choose Phnom Penh. For resort properties with high rental income, look to Sihanoukville. And if you are interested in tourist traffic and hotel real estate, Siem Reap is a great choice.

Don't miss the chance to make a profitable investment in this dynamically developing country! If you still have questions or would like professional assistance in choosing a property, leave a request and we will be happy to help you find the best option for your needs.