Top 8 Reasons Investors are Flocking to Cambodia
Real estate investment throughout Cambodia is still on the rise. Over the last decade foreign investment grew by 800% to over $900 million. This trend is expected to continue well into the new decade as the region benefits from mass tourism, continued political stability and global giants such as Samsung, Nike and Toyota setting up operations in the country.
We’ll be looking at the top reasons you should invest in the Cambodian property market. As one of Asia’s fastest growing economies, opportunity knocks and CABRI Development Group has got the door.
Excellent Strategic Location
Situated between and sharing borders with Thailand and Vietnam, and a halfway point between two of the world’s largest and fastest growing economies, China and India, Cambodia makes for a perfect strategic location for anyone looking to further their trading or investments in the East. With the new seaport nearly completed in Kampot, the port will connect the province to the world further boosting trade and tourism.
Projected GDP Increase
Key world economists predicted that Cambodia’s GDP will experience maximum growth between 2019 and 2022. The significant growth of the last decade has continued to snowball in sectors including real estate, construction, tourism and the garment industry. An estimated increase of 7-10%, one of the highest in the region, means there has never been a better time to seek investment in the area.
The work of the current government to increase the political stability of the region has led to Cambodia becoming one of the fastest growing economies in the world. Harmony amongst members of parliament, ministers, national institutions and administrative bureaucrats see the best interests of the country are held in highest regard. Opportunities for foreign investment have been driven by the countries attractive and open policies regarding tax and foreign business ownership.
The US Dollar
The wide acceptance of the US dollar throughout the country leads to minimised risks for foreign exchanges. Cambodia’s own currency, the riel, takes a back seat when it comes to cash transactions and the US dollar accounts for roughly 80% of all transactions. The stability of ‘the greenback’ benefits travellers, Cambodian citizens and real estate investors alike.
Increasing Land Prices
As the price of both land and property increase throughout Cambodia, an exponential boom is occurring in their property market. This is one of the reasons property investors worldwide are keen to get in on the action. The beautiful landscapes, tropical climates and competitive economy make Cambodia a paradise-like destination for many.
Improved Trade Integrations
The last 25 years has seen huge and positive upheaval for Cambodia’s trade integrations. Cambodia is a member of ASEAN, which provides stabilised regional trade benefits, since 1997 and joined the World Trade Organisation (or WTO) in 2004. They are also part of the ‘One Belt One Road’ project developed by China, with ambitions to invest in and connect 70 countries. On top of this, the government of Cambodia and the department of trade also provides preferential export or duty-free access to most developed economies.
Recently Upgraded Transport Links
Massive efforts and huge amounts of money have gone into the recent upgrades to Cambodia’s infrastructure. Three new international airports and vast improvements to the road and rail system have all been completed, along with the upgrading of all major road and bridge links with bordering countries. The government is currently collaborating with China to modernise and expand the container seaport at Sihanoukville, too.
Attractive Investment Destination
Chinese companies invested over 7 billion dollars in new projects throughout 2018 alone, part of which included a highway that will connect Cambodia’s capital, Phnom Penh, to Sihanoukville. As reported recently by Bloomberg, China has brought over 200 investors into Cambodia adding to the hundreds of real estate investment companies flocking in from across the globe.
With more investors planning to take advantage of the great profits available in Cambodia, this growth is set to continue. Find out how you could benefit from the world class residential property and all the luxurious features that you can have installed within.