Lucrative Property Investment in Cambodia
Often overlooked by investors, the Kingdom of Cambodia is filled with lucrative investment opportunities to cater to its burgeoning tourism industry and growing middle class. Many astute investors have already tapped into the rich potential of Cambodia with centrally located off plan condominiums netting capital gains of up to 30%. The appeal of Cambodia as a place to buy investment property is further bolstered by the generous incentives for foreign investors enabled by the country’s investment laws. Every economic sector is open to foreign investors and foreign investors can own 100 percent of their business or enter into joint ventures.
Although the country’s tourism economy slowed slightly in 2015, domestic demand remained strong and was backed by the growing private sector. Cambodia continues to have one of the highest economic growth potentials in the region. The Asian Development Bank has predicted that the country’s GDP will grow 7.0% by the end of the 2015 fiscal year and 7.2 by the end of 2016. All things considered, it’s little wonder that overseas property investors flock to Cambodia to capitalise on its outstanding economic potential.
Although once famous for its political turmoil, the political landscape of the country has changed radically in recent years under Prime Minister Hun Sen and is now relatively stable and peaceful. Backed by a young, ambitious workforce (average age 24.1 years) with the potential to remain productive for the next 30 years.
Advantageous location to buy investment property
Located between two of the ASEAN region’s economic powerhouses, Thailand and Vietnam, Cambodia benefits from the economic spillover from these giants. To facilitate further commercial dealings with these two countries, the Cambodian government plans to expand the key through road National Road 5 (which connects Phnom Penh to the Thai border) to strengthen trade connectivity. This expansion is on track to be completed by 2020. The government also intends to further capitalise on this upgrade in infrastructure by turning the area along national roads 1 and 5 into industrial zones.
From a regional perspective, the country is ideally situated between Asia’s two key growth countries; China and India. Its positioning along the gulf of Thailand at the centre of the ASEAN region also ideally positions the country to play a key role in regional in maritime trade.
Phnom Penh is a vibrant city that caters to a multiplicity of lifestyles
- Dynamic city with youthful demography
- Cosmopolitan with a diverse restaurant, café and bar culture
- An abundance of high potential investment property opportunities within the capital including Riverside, BKK, Toul Kork and Duan Penh
An ideal investment climate
- 100% foreign property ownership and 99-year land leases
- Numerous investment incentives from the government
- Open capital account; easy repatriation of profits
- A Government-Private Sector Forum that works to reduce obstacles and inefficiencies
Rapidly growing domestic consumer market that is largely unpenetrated
- 61% of Cambodians are under 25 and will continue to boost domestic demand as they age
- Robust growth in the workforce, urbanization rate and household formation
- Per capita GDP and purchasing power has more than doubled over the past decade and continues to rise
- Import substitution opportunities emerging across a range of industries
Peaceful, stable political landscape
- A well established, experienced parliament
- Ruling political party and Prime Minister has been in power since 1985
- A dollarized economy
- Low foreign exchange risk
- Stable monetary policy and fiscal responsibility
There has never been a better time to buy investment property in Cambodia. To learn more about the SunCity Bassac development in Phnom Penh offered by ALFA Investors, please don’t hesitate to get in touch.