9 Reasons Why You Should Consider Investing in Cambodian Real Estate

money piles growing like plants (metaphor for invest)

We’ve noticed that while many people are interested in penetrating the world of real estate investment, they usually get cold feet. They feel that it’s too expensive and they need more money to get involved. One thing potential investors have overlooked is investing in foreign markets, in particular emerging markets.

Invest in Cambodian Real Estate In 2018

Real estate investments are a great way to purchase a future income stream. However, the growth of real estate markets in western countries is matching the growth of the economies.

turtle slowly walking on sand

SLOW

The funds needed to start are much higher as well. This is why you should take the time to reflect on other possibilities abroad. The greatest opportunities can be found in emerging markets.

“An emerging market is a country that has some characteristics of a developed market, but does not meet standards to be a developed market.” – definition by Wikipedia

These countries have young, growing populations that offer strong economies that can grow by double digits each year. For these reasons, we believe that more people will be investing in foreign, developing countries because of their much higher returns and opportunities for growth.

Do note that investing in real estate does have its drawbacks. One of these is the illiquidity of real estate in Cambodia and around the world. Illiquidity means that it’s difficult to convert a property into cash. A real estate sale transaction could take months to complete while other forms of investment can be liquidated quickly.

Why Consider Investing in Cambodia Real Estate

There are numerous reasons to think about investing in Cambodia. First off, the Kingdom of Wonder is a member of ASEAN (Association of Southeast Asian Nations) which is similar to the EU. Cambodia’s tourism sector has seen rapid growth, often in the double digits each year. Also, there is a large and growing number of expats which means more NGOs and international companies will be headed to the Kingdom.

Check out this detailed report on Sihanoukville, made by realestate.com. Sihanoukville is a popular tourist and expat destination in Cambodia thanks to its location off the Gulf of Thailand. Below the video, you’ll find nine reasons why you should think about investing in Cambodian real estate.

  1. Growing tourism sector
  2. A large number of expats
  3. US Dollar investments
  4. Enormous growth potential
  5. Sustained GDP growth (5% average | #21 worldwide in growth | #1 growth in the region)
  6. Secure assets
  7. Strategic location
  8. Trade integration by being a member of ASEAN
  9. Cambodia is safe: Typically, less-developed countries aren’t welcoming of investment and are more politically and financially unstable.

Cambodia’s Outlook and Trends

sephia-colored photo of Phnom Penh, Cambodia

Over the last ten years, Cambodia has seen some of the fastest economic growth in Southeast Asia, recording an average GDP growth of 7% per year since 2010. The nation’s capital and economic hub, Phnom Penh, was noted by the World Bank to have the second fastest rate of urban spatial extension.

Some of Cambodia’s success lies in its attractive environment for foreign investment. In 2015, Cambodia received over $4B in foreign direct investment and has a permanent expat population of over 78,000.

The agricultural investment opportunities in Cambodia are plentiful. Some hot agricultural areas include: fisheries, rubber processing, sugar processing, jute, palm oil refineries, tropical fruits, and organic produce.

Siem Reap apartment for rent. Thanks to Cambodia’s low cost of living, new investors can jump in with relatively low risks. This makes it perfect to learn and gain experience or even strike it big! Planning on traveling to Cambodia? Find everything you need to know about their visa system.

Sources:
http://www.realestate.com.kh/news/guides/cambodia-investor-guide/
https://hacked.com/looking-invest-cambodian-real-estate-part-1/
https://thecollegeinvestor.com/10414/ways-to-invest-in-real-estate/

%d bloggers like this: