Why Invest In Cambodia?

Out of all the rapidly growing frontier markets in Asia, Cambodia is one of the fastest-growing ASEAN nations. With a steady GDP growth rate of 7%, it is now at an inflection point of economic growth and is also one of the few nations that have not caught the radar of mainstream real estate investors. 

Over the past 20 years, Cambodia has reported positive GDP growth, successfully averting the Asian Financial Crisis of the 1990s, the tech bubble of the early 2000s, and even the recent 2008 financial crisis. 

Cambodia has been under the radar of most real estate and institutional investors for years, yet this is quickly changing. Multinational firms like Samsung, Nike, and Toyota are rapidly setting up operations in Cambodia’s bustling capital of Phnom Penh. Analysts are now expecting real estate investors to catch on to this wave. 

Here are the Top 4 reasons real estate investors are turning to Cambodia:

  1. Ride on their Fast-Growing Economic Growth – Cambodia has maintained a 7.8% GDP increase for over two decades. It is one of the fastest-growing economies in Southeast Asia due to its strategic location. It is sandwiched between two strong economies, Thailand and Vietnam, located mid-way between China and India and connects Australasia to Asia. With the trade agreements, Cambodia is highly favorable to ride on regional and global trade. 
  2. Beauty of Freehold Ownership – Unlike other emerging countries (such as Vietnam), where foreigners are only entitled to a 50-year lease, foreign investors can have 100% ownership of a freehold property in Cambodia. 
  3. US Dollar Economy – Despite having its currency, Khmer Riel (US$1: 4000 KHR), it is a dollarized economy with US dollars used in almost all the daily transactions across the business, investment, and property purchase. Cambodia’s real estate investors are well placed to benefit from the inevitable growth of the property market and the stability of the world’s most resilient currency. 
  4. Political Stability – Despite being an emerging market, Cambodia is one of the few nations that have been able to achieve financial and political stability with one of the longest-serving non-royal Prime ministers in Southeast Asia.

The combination of political stability and financial policies that are pro-business and foreign investment is rare among fast-growing ASEAN nations, which has enabled Cambodia to achieve substantial development and progress within a short timeframe. Yet there is still significant room for growth. 

In terms of the property market, property prices in Cambodia are highly attractive when compared to other countries in Asia. With the change in foreign ownership policy, analysts have begun to see an uptick in interest from real estate and institutional investors globally as Cambodia welcomed investors into the market. 

Phnom Penh – The Ideal Investment Choice in Cambodia

With a young population of over 3 million and a median age of just 25.3 years, Phnom Penh is the nation’s bustling capital and the centre of its growth. 

Known as the Pearl of Asia, anything of importance be it business or political takes place in Phnom Penh. Phnom Penh is fast becoming unrecognizable in the best way possible, thanks to international builders and buyers. 

“The pace of development for me is mind-blowing,” said Ross Wheble, country head of international realtor Knight Frank. With the new interest in Phnom Penh, there has been a flurry of non-stop construction work in Phnom Penh. 

As a city, it has much to offer – from highly authentic French cuisine to its casinos and street markets. Its city temples are some of the world’s most ornate and are second in scale only to the bustling skyscrapers in its new financial district. 

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