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5 Reasons to Invest in Property in Phnom Penh City of Cambodia

  • by Srun Mengkiang
  • 6 months ago
  • 0

The Cambodian real estate market has been expanding for the past several years. As one of the most successful industries in the country, it has made a significant contribution to the overall economy’s growth.

It is one of Asia’s best and fastest-growing economies and is a haven for enterprises and real estate investors alike.

Many areas of the economy, including real estate, are attracting the attention of international investors. Nike, Toyota, and Samsung are just a few global corporations that have set up shops in Cambodia.

Real estate investors have a lot to gain from investing in the nation, as foreign investment has increased by more than 800 per cent in the previous decade.

The capital city of Cambodia, Phnom Penh, is the best spot to make a property investment. Many attractions and amenities await visitors and residents alike in this city, which serves as the capital of Cambodia.

5 Reasons to Invest in Property in Phnom Penh

Infrastructure Access Is Possible

Property prices in Cambodia are affected significantly by the lack of adequate infrastructure. This isn’t specific to Cambodia, but it is a problem that affects all of South East Asia.

This is especially true in a city like Phnom Penh, where the construction of new businesses, homes, and industries is outpacing the city’s already limited infrastructure.

Some land developers, such as boreys, are required to build their own electrical and water supply infrastructure, increasing the development’s cost even further.

For most of today’s needs, the land is a mostly ineffective raw material. This demonstrates the necessity of proper infrastructure to support commercial, residential, and industrial activity.

The feasibility of any residential or business project hinges on energy and water infrastructure availability. Developers, for their part, see the land with access to electricity and water as a precious commodity.

Capital Investments and High Rentals

Let’s talk about what all investors care about: the possibility for strong rental returns and capital gain. Even while there are many different kinds of investors, each with a distinct goal in mind, my experience shows that there are just 2 categories of investors: those that prioritize capital appreciation and those who prefer rental returns.

As a result, it is feasible to invest in Phnom Penh city in Cambodia in a way that achieves both goals at the same time. It is possible to generate a steady rental income as your asset appreciates.

A good example of this is Phnom Penh’s rental yield, which is currently about 7-8% year-over-year. On the other hand, I feel that long-term wealth generation in Cambodia will be based on capital appreciation.

It’s impossible to foresee when a company’s stock will rise in value. According to the comparisons made with other Southeast Asian countries, Cambodia’s potential for capital appreciation is quite high.

A High Return on Investment

Many condominiums in Phnom Penh contribute to the city’s competitive real estate market. The demand is also strong from different tenants eager to enjoy the numerous amenities of living in the city.

Buying a pre-sold apartment implies getting a good return on your investment. This is why the return on investment (ROI) is so high:

The Value of a Condominium Is Rising

Economically, Cambodia is a developing country, yet its real estate market is very stable. Property values in Phnom Penh city have risen dramatically in recent years, particularly in tourist hotspots.

By expert’s second-quarter estimate, there are 21,935 condominium units in the city. There will be 53,512 condominiums in the city by 2023, demonstrating robust demand for condos in the area.

Rents Are Going Up

You may enhance your rental income by furnishing and decorating your home to appeal to your ideal tenant.

Because of these and other factors, renting a condo in Phnom Penh is a very competitive market; even if market prices were to be used, the average monthly rent in the city would be more than it would be elsewhere in Cambodia.

Tourism

Since the early 2000s, the tourist industry in Cambodia has grown significantly. 6610,592 people from other countries visited Cambodia in 2019, increasing 6.6% over 2018.

Cambodia’s capital city, Phnom Penh, is a popular tourist destination, and its tourism sector is gaining pace. Top 10 visits from China (the greatest in number), followed by Vietnam, then Thailand, then Korea, and the United States.

The United Kingdom and France were also in the top ten. A 100 per cent rise in foreign business-related travel to Cambodia.

Cambodia has undertaken huge development plans to strengthen its infrastructure and international airport due to the rapid surge in visitor numbers.

Urbanization

In addition, the city of Phnom Penh, Cambodia’s capital, is experiencing fast urbanization. During the infamous Khmer Rouge era, Phnom Penh was fully evacuated in the mid of 1970.

There was no way somebody could live there. Even though Phnom Penh has come to life after the current administration was created, its growth has been exponential.

The city’s population is predicted to rise in the following decades.

Wrapping Up

I hope that I have raised the proper reasons to invest in property in Phnom Penh city of Cambodia’s capital city, Phnom Penh.

According to a recent report by the World Bank, it is unquestionably the greatest place to invest in real estate in Asia’s frontier markets.

Since the Khmer Rouge regime fell more than two decades ago, this Southeast Asian country, despite its tiny size, has seen rapid economic progress.

Property in Cambodia is the best method to take advantage of the country’s unprecedented growth. Every year since 1997, Cambodia has avoided a recession. Asian Financial Crisis, IT boom, and 2008 financial crisis were all overlooked by this country. It has even outgrown them.

Although there is no such thing as a recession-proof country, Cambodia is one of those countries that haven’t seen a recession. This is because, like many emerging countries, Cambodia has a lower level of global economic integration.

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