In Cambodia, any foreigner can invest in a basic studio apartment. A lot lesser red tapes compare to many other countries. The excitement of investing in Southeast Asia is real. The potential of these investments is limitless.
The interest in real estate investments in Cambodia is expected to continue. All economic signals this year point to the property market in the upward trends. Investors who decided to buy a property are now enjoying a continuous inflow of income. It had been like this in the last decade. It continues to do so for many more years to come. Yes, investing in the Kingdom is understandably scary and pose risks. But the expected return on investment makes the risks all worth it.
Since the beginning of the 1990s, real estate gained the status of key factor in the economic growth strategy in Cambodia. Phnom Penh, the capital city, welcomes a large number of domestic and foreign real estate investments. We look at your needs to buy a property in Cambodia, Be it as a Cambodian citizen, or as a foreign national living in Cambodia, we assure you the best possible investment.
Although the global financial markets have been badly targeted by the COVID-19 pandemic, 2020 could be an opportunistic time to purchase property in Cambodia. Land prices and property investment have been on a positive trajectory for many years in the Kingdom. Despite economic slowdown, China represents 43 per cent of Cambodia’s foreign direct investment (FDI) in 2020.
Condominium developers now have got enough time to divert their concentration from sale to customer demand these days. Most of the people will try to shift in luxurious apartments available for rent after the lockdown, because they will prepare them for any other pandemic in the future.
In 2020, property buyers in Cambodia who could afford, can purchase condos at lower-than-market prices. However, keeping covid-19 under consideration, buyers may need to compromise on viewing properties online and take advantage of lower prices. As Moody’s Investors Service said in May 2020, that Cambodia has “strong fiscal buffers to counter disruptions to trade and growth arising from the COVID-19 pandemic.”
According to US credit rating agency “slowdowns in China, the EU and the US would deter Cambodia’s growth prospects this year (2020), with GDP forecast to contract 0.3% but it still anticipated GDP to rebound by almost 6% by 2021.In 2019, the construction and real-estate sector in Cambodia yielded investment worth approximately $11.43 billion, a 90% rise from 2018.
Some suggestions from Realeastate.com.kh on the changes in trends in a post-COVID-19 Cambodia for property investments include concessions in terms of rental properties, purchase of finished and reputable developments, compromise on annual increases: instead of a 15% increase over 3 years, scale this back to 5% for 3 years.
The Cambodian construction and property sector saw a 47% year-on-year growth in approved construction projects between January and February 2020. The total value of the projects was valued at $1.996 billion.
Condominiums and Apartments are the easy and profitable option for foreign buyers in Cambodia, but are also popular with Cambodian property buyers. The Cambodian Government also brings under consideration the citizenship applications from foreigners when “a serious and profitable investment is being made.” So, Condo developers are confident enough that the demand for condos will still exist in the post-pandemic world.