For any investor, the hardest part is finding the right investment option and investing in it. There are many investment options available. The most important thing is to find the best one.
Aside from the investment option, what matters most is the location. Taking the example of real estate. The returns you will receive will vary by country. Investing in the real estate market of a country with poor economic and property market performance will not give you a good return. Instead, you should Invest in Cambodia with continued economic growth and better performance of the property market.
When we talk about a country with better economic and real estate performance, Cambodia comes to mind. In this post, we will talk about whether Cambodia is a good place to invest.
Real Estate Cambodia is the country that successfully overcame the Great Depression of 2000 and 2007. During this time almost all countries around the world were affected. Countries around the world were in the throes of an economic downturn, while Cambodia was a country that was doing well. Over the past decade, Cambodia real estate has managed to maintain its GDP growth.
Cambodia’s economic growth is the result of foreign direct investment. And with the growth of the country’s economy, more and more investors are showing interest in Investing in Cambodia. FDI in Cambodia has increased by more than 700% in the last 8 years. From these statistics, we can say that Cambodia may be the best country for investment.
Cambodia has always been the center of attention of world-famous tourists for its Angkor Wat. Increasingly attractive, there are many other factors that add value to Cambodian real estate. Here are some tips on why you should Invest in Cambodia real estate:
- Strategic Location
Cambodia is located between Thailand, Vietnam, and Laos, three strong economies in ASEAN, and two of the world’s largest and fastest-growing economies, China and India.
In addition, as part of China’s Belt and Road Initiative, Cambodia will become a major part of the Southeast Asia network, which will further facilitate its development and provide ample business opportunities.
- Strong GDP Growth
With a steady GDP growth of about 7% over the past few years, Cambodia is on a steady path to economic recovery. The growth rate is highest among the fastest-growing ASEAN countries. Its industry and service sectors both play a significant role in Cambodia’s economy. Cambodia’s strong economic growth is the best result of foreign direct investment. The analysis shows that FDI has increased by more than 800% in the last 10 years, especially in the construction and real estate sectors. In addition, the country has very open investment laws and offers investors a number of benefits, such as no visa restrictions, no currency differences, and no tax breaks.
- Young Population
With an average age of 27, the young population also plays a key role in economic growth. Cambodia has the lowest labour force rate and the highest unemployment rate in Southeast Asia. It has attracted many foreign investors, especially from mainland China, Hong Kong and Singapore to expand its business in Cambodia.
In recent years, tourism has become one of the most important sectors contributing to the Cambodian economy. The total number of international tourist arrivals increased by 6.6% in 2019 to 6,610,592 visitors. Its tourism industry is gaining popularity, especially with the world-famous World Heritage Site of Angkor Wat, Sam Rap, Sihanoukville and Phnom Penh, its capital. According to the December 2019 Tourism Statistics Report, the top 10 visitors came from China, followed by Vietnam, Thailand, Korea, the United States, Japan, Malaysia, France and the United Kingdom.
Cambodia Real Estate has seen a 100% increase in international business trips. With such a rapid growth of tourists in recent years, Cambodia has made extensive expansion plans to improve its infrastructure and its international airport.
- US Dollar Economy and No Foreign Exchange Control
Although the Cambodian Rail is Cambodia’s official currency, the US dollar is generally used for all major day-to-day transactions, such as business transactions, investments, and when buying or selling Property in Cambodia.
Cambodia is the third largest country in the world and the only country in Southeast Asia to use the USD, accounting for more than 80% of the country’s currency. There is no foreign exchange control, so capital is free to enter and exit at any time.
- Freehold Foreign Property Ownership
Cambodia’s foreign property ownership regulations were only opened in 2010. From then on, foreigners can freely own any freehold property of straight-titled properties, ie a condominium or apartment above the second floor or a maximum of 70% foreign quota. There is no restriction on the amount of investment and foreigners are allowed to go out and sell to anyone at any time. The only downside is that foreigners are not allowed to own land.
- Property Price
Property ownership in Cambodia is still much cheaper than in China, Hong Kong and Singapore. The average Cambodian property for a condominium in downtown Phnom Penh is valued at approximately US $ 2,000 to 3,000 per square meter. Only one third of the price of other Asian countries. Although Cambodian Property prices have risen over the past few years, these figures are still relatively low compared to the global average.
- Capital growth & Rental Yield
Cambodia’s Real Estate has seen tremendous growth over the years, the largest increase in the Asia-Pacific region. In Phnom Penh, Cambodia’s central capital, its strong economic growth, as well as the passage of foreign property law, increased its average value by 15%. Land prices in Phnom Penh sky rocketed from 2010 to 2018.
Cambodia’s largest city, Phnom Penh, is a preferred location among many Chinese, Singaporeans, Taiwanese and Hong Kong because of the high average rental production in Phnom Penh, where you can get at least 6% to 8% in return. Therefore, large-scale developments are currently under construction, especially in the center of the capital.