Cambodia is an emerging economy in Southeast Asia with a growing real estate market.
Unfortunately, many still doubt the country’s real estate potential.
According to the 2022 annual survey by Cambodia’s largest online real estate portal realestate.com.kh, more than 90 percent of respondents said buying property is a good investment in Cambodia, especially land investment.
Given the bright outlook for Cambodia’s property sector, industry specialists believe this is an ideal time for international buyers to consider investing in the market.
Land investment is one of the best options you should consider. Here are the reasons why!
| Reasons to invest in Cambodia’s Land |
1. Economic growth
Cambodia has experienced a consistent economic growth over the past decade, with a GDP growth rate averaging around 5-7% per year.
This growth has been driven by tourism, manufacturing, and construction industries, which can create land demand.
2. Increasing urbanization
As Cambodia’s cities continue to grow and with the population increase, demand for residential and commercial properties is continually growing.
This can create opportunities for land development and investment.
Moreover, there is a growing demand for affordable housing in Cambodia, especially outside of the city.
3. Attractive investment climate
Cambodia’s attractive investment climate is characterized by political stability and a business-friendly government, which provides tax incentive schemes and ensures the non-discrimination of foreign-owned companies.
This environment has attracted numerous foreign investors from China, Korea, Japan, and Singapore.
Additionally, the government is proactively working to streamline the investment process for foreign companies eager to establish manufacturing plants in the special economic zone of Cambodia.
This policy has been in place since 2005 and aims to foster a more competitive investment landscape by developing manufacturing hubs outside Phnom Penh.
4. Low land prices
Cambodia’s land prices are relatively low compared to other countries.
This means that investors can purchase land at a lower cost and potentially see higher returns on their investment over time.
Averagely the land appreciation is more than 10% a year. Besides, locals still prefer to buy or invest in land as, overall, it’s cheaper than buying apartments.
5. Land Ownership
Owning land is often seen as a symbol of wealth and status for the locals as it is culturally significant in Cambodia.
Many locals may see land as an opportunity for income and capital growth. It also provides a home for many local families over time.
Compared to other investments, it is one of the cheapest, most stable and reliable investments with a significant gain on capital appreciation.
6. Tourism potential
Cambodia is home to several popular tourist destinations, such as Angkor Wat and the beaches of Sihanoukville.
As tourism continues to grow, there is potential for investment in hotels, resorts, and other tourist facilities.
In sum, land investment in Cambodia can be a promising opportunity for investors interested in diversifying their portfolio with a better return in the short term and taking advantage of the country’s rapidly growing economy.
Hence, it is one of the popular strategies for those looking to build wealth on real estate in Cambodia.
However, as with any investment, conducting thorough research and due diligence is important to minimize risks and maximize returns.
This article was written by Mandy.
Wait no more – time to invest in land! Talk to our agents NOW to better understand such investments, or join us on the Cambodia property tour to unlock its potential. Seeing is believing!
[hubspot type=form portal=5699703 id=2380afe3-ad4c-4cfa-9abf-d3947e377bf2]