The real estate market in Cambodia is projected to reach a value of US$601.10 billion in 2024. Residential real estate dominates this market segment, with a projected market volume of US$554.70 billion in the same year, which indicates that now is the right time to invest in Cambodian Properties as it is in the phase of the infrastructure boom.
It is essential to understand that timing plays a vital role in accurate investment decision-making due to many factors-
- Legislative laws- Changes in the rules or government policies significantly affect the prices of the properties.
- Economic conditions- Investing when GDP is significantly growing or shows consistency, properties tend to give high returns.
- Interest Rates- If the interest rates are low, borrowing power increases, which can stimulate real estate prices; usually, the prices increase in such cases.
One name always stands out in the real estate industry: IPS Cambodia. They have been in this industry for over ten years, and with their experience and expert agents, your search for properties in Cambodia can come to a positive end.
Right Time to Invest in Cambodian Real Estate Properties
Some of the compelling reasons that indicate that it is the right time to invest in Cambodian Real estate are-
Economic Growth and Stability in Cambodia
According to the Asian Development Bank’s projections in 2023, the GDP was at 5.5%, and it is expected that by the end of 2024, it will reach 6.0%, which shows extraordinary potential for the future of Cambodia’s real estate market.
This consistent growth and current economic stability is a huge factor when investing.
Some of the other factors contributing to the growth of the Cambodian economy are the –
- Tourist boom- The surge in tourism has led to a demand for hospitality and residential properties. Investors interested in capitalising on the thriving tourism market are finding Cambodia an opportunity.
- Infrastructure development- Very recently, in 2023, the Council of Development passed 268 investment projects.
- Young and growing workforce- Many expats are shifting to Cambodia in search of better work opportunities, which has increased the demand for houses in Cambodia.
Favourable Regulatory Environment
With the establishment of the Real Estate Investment Commission (REIC), there has been enhanced transparency in government policies promoting investments. The REIC was created to facilitate investment within Cambodia’s real estate sector. The government has taken steps to streamline the investment process and simplify property ownership for foreigners.
On October 15,201, the Law of Investment was developed to establish an open, transparent and predictable legal framework to promote quality, effective and efficient investments by Cambodian nationals and foreigners in Cambodia.
Rising Demand for Real Estate
According to data presented by the Ministry of Land Management, Urban Planning, and Construction, the annual housing demand, on average, is about 50,000.
There has been an increase in demand for residential, commercial, and industrial properties in Cambodia due to-
- Foreign Direct Investments
- Government policies and incentives
- Growing middle class
- Infrastructure development
Infrastructure Development and Urbanisation
The Cambodian government is actively making efforts to improve its infrastructure. Some of the critical infrastructure projects of Cambodia include-
- Airports- The expansion of Techo-Takhmau International Airport and Siem Reap Angkor International Airport has promoted tourism in the country.
- Roads and Highways- Phnom Penh-Sihanoukville Expressway was opened to the public from October 1, 2022, until October 31, 2022, as a trial run.
- Energy Infrastructure- Cambodia plans to develop an additional 5.3 GW of large-scale hydro, coal and gas-fired generation capacity between 2019 and 2030.
- Tourism Infrastructure- Cambodia has significantly worked on its tourism industry by opening more and more hotels and recreational facilities and promoting tourist spots. This effort has shown a significant boom in the tourism sector as Cambodia’s State Secretariat of Civil Aviation reports suggest an increase in air travel with 3.4 million registered travellers in 2023.
Why IPS Cambodia?
IPS has earned its name and spectacular reputation due to its commitment to delivering high-quality and tailored services. Their diverse portfolio includes various properties available to rent out or purchase. It could be a small condo or a land to build a hotel; they cater to all demands.
Their expert agents have a deep knowledge of the local market and have insights into the real estate market, which helps them serve their clients.
Conclusion
The stable GDP and consistent growth of Cambodia’s economy, their infrastructure boom, and the rising demand for real estate are all the green flags you need to make your move by investing in Cambodian real estate.
With the help of IPS Cambodia, the journey of investing in real estate can be fruitful for you. Their range of properties and lands will help you understand what options you have to invest in, and their expert’s deep knowledge will help you make an informed decision.
Agents at IPS can handle all the legal paperwork, and you have to sit back and let them do their magic. Connect with them now and grab the opportunity to invest with the help of IPS Cambodia.