Foreign investors and investment funds can’t get enough from Cambodia. Each year they invest more and more money in local businesses, infrastructure, and Cambodia real estate. According to government sources, their foreign direct investment (FDI) fund has increased for a staggering 800% in ten years.
Here are some of the top reasons that drive foreign investments in Cambodia.
#10 China Bets Big on Cambodia
China has already poured billions of dollars in Cambodia’s economy, infrastructure, and real estate market. Much of the economic growth is thanks to their efforts to make Cambodia a success story. One of the reasons why Cambodia is so important to China is because of its “One Belt, One Road” initiative. Cambodia’s strategic position makes it of great essence for China.
#9 Foreigners Can Easily Invest in Real Estate
Buying property is fast and convenient. You only need to obtain a visa and the funds. In terms of ownership, foreigners can own up to two-thirds of any building, the ground floor excluded. Furthermore, they can also invest and own 49% of any structure. The rest need to be financed and owned by a local partner.
#8 Big Corporation are Setting up Operations in Cambodia
Companies like Toyota, Nike, and Samsung are already part of the Cambodian economy. Many other Fortune 500 companies have plans to invest in Cambodia. Most of them plan to build or are already developing commercial buildings for their facilities.
#7 Cambodia is Recession Proof
Cambodia is one of the few countries in Asia and hasn’t gone through a significant recession. The Asian financial crisis from the 90s went unnoticed, the 2000s tech bubble had zero impact in the country, and even the 2008 financial crisis meant nothing to them.
#6 Political Stability
Their turbulent and violent past is almost forgotten and left in the past. Nowadays, their government is working tirelessly to make Cambodia a great place to live. They have invested heavily in improving the country’s infrastructure, the business climate is excellent, civil rights are greatly improved, and there are no major threats.
#5 Expatriates Thrive
There are vast communities of expatriates in Cambodia. From the look of things, they are doing quite well and continuously expanding. That speaks volumes about the country that is turning into a cosmopolitan piece of haven.
#4 High Yield Rates
Annual gross rental yield in Cambodia ranges from 6 to 8%. Compared to rental yields in the nearby region, that’s exceptionally good.
#3 High Economic Growth
Analysts and economists predict economic growth ranging from 6.8 to 7% in 2020 as well. Strong economic growth is one of the best signs for real estate investments.
#2 Rural/Urban Migration
Their galloping economy is fed with a workforce from Cambodia’s rural areas. That creates quite a demand for affordable housing. This real estate segment is expected to grow exponentially in 2020.
#1 Emerging Middle-class
Their strong economic growth played a significant role in the making of a strong middle class. Analysts predict that the middle-class in Cambodia will make one-third of all population in five or six years from now. Their impact is greatly felt on the current real estate market and will further increase in the years that come.