Tourists are attracted to Cambodia’s real estate sector to unlock investment potential and invest in this thriving industry. The initiatives implemented by the government increase foreign investments because Cambodia is a tourism hub with potential logistics and investment opportunities.
Widely constructed projects have made local and international businesses opt for and invest in this rising sector. IPS Cambodia, the popular real estate agency in Cambodia, assists individuals and foreign investors in guiding them about the trends, insights, and investment opportunities of Cambodia’s real estate industry.
Cambodian Real Estate Industry
Many factors can entice investors to consider Cambodia’s real estate market, including its GDP rate growth, which targets about six per cent in 2023. Besides, foreigners can completely own businesses in Cambodia, with the fastest urbanisation and investor-friendly trust laws and investments.
By 2027, Cambodia is anticipated to be categorised as a middle-income country moving from LDC or least developed due to the continuous growth in Cambodia’s emerging middle class.
Insights Into Cambodian Real Estate
● Urbanisation
The trends in Cambodia’s real estate sector indicate continuous urbanisation growth. The increased demands for commercial and residential properties persist in Siem Reap, Phnom Penh, and many other major cities due to a substantial surge in population, making developers fulfil them with increased construction.
● Digitalisation
Cambodia has witnessed a continuous increase in digitalisation. These rises include KHQR and other payment options, along with the CIPS, that would significantly increase investment and trade between Cambodia and China.
● Eco-Friendly And Sustainable Structures
Since environmental concerns are considered globally, Cambodia’s real estate sector also witnessed a rise in eco-friendly and sustainable buildings. This trend accelerates because homebuyers and investors prefer environment-friendly and energy-efficient structures and houses. Property values are increased, and operating costs are minimised, which is a widespread preference and option for residing in Cambodia and investing in properties.
Cambodian Real Estate Trends
● Rental Properties
Demand growth for rental properties in Cambodia is also expected over time. This trend is driven because foreigners and young professionals look for rental properties and wish to refrain from investing in purchasing them. You can significantly notice demand in Siem Reap, Phnom Penh, and other areas where several lifestyle amenities and job opportunities exist.
Houses, condominiums, and apartments are included in rental properties that offer enticing amenities, convenient locations, modern design, and other top-notch features to meet the requirements and demands of ex-pats and young professionals. Besides, rental properties are flexible choices for people who wish to analyse and take time before investing in or buying a property in Cambodia.
● Luxurious Properties
Luxurious properties are in demand and continue to be witnessed in Cambodia. Individuals and foreign investors’ attraction to Cambodia’s real estate industry contributes to the rising demand for luxurious properties. Luxurious condominiums and apartments are preferred in Phnom Penh and other areas where urban centres are increasing.
People who wish to reside with sophistication, convenience, and comfort, with prime locations, exclusive amenities, and facilities presser such structures. Since the upper and middle class is rising in Cambodia, investment in luxurious properties and purchasing power have increased, leading to increased property prices.
● Infrastructure
Cambodia continuously witnessed increased infrastructure development due to the government’s initiatives to expand the real estate market. These initiatives include airports, bridges, roads, and many other constructions, improving communication, mobility, and sales.
The demand for better connectivity and accessibility will improve for businesses who wish to set up their business in crucial areas and locations. These areas where improved infrastructure will entice new businesses and create new centres for growth.
● Tourism
Cambodia’s real estate market is significantly impacted by development in the tourism industry. The substantial investment by the government is witnessed since economic growth is driven by tourism. Sihanoukville, Siem Reap, and several other popular tourist locations see continuous demand for properties. The government’s plans and initiatives to create roadways and airports also affect the real estate sector.
Cambodian Investment Opportunities
● Foreign Investment
Cambodia’s real estate industry continues to be driven by foreign investment. The Cambodian government provides streamlined procedures and incentives for foreign incentives. The simple process of getting land titles, fee reductions for licences and permits, and tax breaks are some of Cambodia’s government initiatives to incentivise foreign investors.
● Feasibility Of Business
Business feasibility in many areas across Cambodia is among the opportunities investors and individuals seek. Many businesses continue to invest in Cambodia’s thriving market of real estate due to the ease of process and regulations of setting up a new business.
● Specific Economic Zones
SEZs of special economic zones attract many foreign investors due to the available employment opportunities, better prospects, and equal pay, contributing to the demand for housing.
Conclusion
It would help you remain updated with the trends, insights, and investment opportunities to succeed in Cambodia’s real estate industry. IPS Cambodia is among the leading trusted partners when you plan to invest in residential or commercial properties in Cambodia.
Their professional team will assist you in supporting and navigating Cambodia’s intricate real estate industry and making wise decisions.
