How to proceed if you want to invest in real estate in Phnom Penh
- Research the market: It is important to understand the local real estate market before making an investment. Look at factors such as property values, rental demand, and economic conditions to get a sense of the market.
- Determine your budget: Before you start looking at properties, it is important to have a clear budget in mind. This will help you narrow down your options and focus on properties that are within your price range.
- Find a reputable real estate agent: A local real estate agent can be a valuable resource when it comes to finding properties and navigating the local market. Look for an agent who has experience working with investors and a track record of successful transactions.
- Consider the type of property you want to invest in: There are many different types of real estate investment properties, including residential properties, commercial properties, and vacation rentals. Consider what type of property aligns with your investment goals and budget.
- Due diligence: As with any investment, it is important to thoroughly research any property you are considering. This includes looking at things like the condition of the property, zoning regulations, and potential for appreciation.
I am not a Cambodian citizen so can I buy a property as a foreigner?
Yes, it is possible for foreigners to buy real estate in Cambodia, but there are some restrictions in place. According to Cambodian law, foreigners are not allowed to own land in the country, but they can own buildings or condominium units. Read our full article.
There are two main ways for foreigners to own real estate in Cambodia:
- Freehold: In a freehold arrangement, a foreigner can own a condominium unit in a building that is located on leased land. Freehold condominiums are becoming increasingly popular in Cambodia, especially in larger cities like Phnom Penh.
- Leasehold: Under a leasehold arrangement, a foreigner can lease land from the government for a period of up to 50 years, with the option to renew the lease. The foreigner can then build a house or condominium unit on the leased land.
It is important to note that, in either case, the foreigner does not own the land itself, only the building or condominium unit. It is also important to work with a reputable lawyer to ensure that all legal requirements are met and to protect your interests as an investor.
What are the best locations in Phnom Penh to invest in real estate?
The best location for real estate investment in Phnom Penh will depend on your specific investment goals and budget. That being said, some popular areas for real estate investment in the city include:
- BKK1: This area is known for its upscale restaurants, cafes, and shopping centers, making it a popular choice for both tourists and locals.
- Toul Kork: This neighborhood is located just north of the city center and is popular with families due to its large houses and tree-lined streets.
- Boeung Keng Kang: This area is popular with expats due to its proximity to international schools and embassies.
- Chamkarmon: This area is located in the heart of Phnom Penh and is known for its busy markets, shopping centers, and restaurants.
- Daun Penh: This central area is home to many embassies, government buildings, and cultural sites, making it a popular choice for tourists and investors.
It is also a good idea to consider factors such as proximity to amenities, public transportation, and the overall condition of the property when choosing a location for real estate investment.
What is the average selling price for a condominium in Phnom Penh?
The average selling price for a condominium in Phnom Penh can vary widely depending on a number of factors, including the location, size, the floor, the view and condition of the property. According to Numbeo, a database of user-contributed data about cities and countries worldwide, the median price for a one-bedroom condominium in Phnom Penh as of 2021 was $118,935. However, it is important to note that this is just a rough estimate and actual prices may vary significantly.
To get a more accurate idea of the current market conditions and pricing for condominiums in Phnom Penh, it is a good idea to work with a local real estate agent and to do your own research on current listings and recent sales in the area.
What are Cambodia’s development forecasts?
Cambodia has a rapidly developing economy and a growing real estate market, especially in the capital city of Phnom Penh. According to the World Bank, Cambodia’s GDP is expected to grow by 6.8% in 2021 and by 6.9% in 2022. The country’s construction sector is also expected to continue growing, with the number of construction permits issued in the country increasing by 12.5% in 2020.
The Cambodian government has also implemented a number of initiatives to attract foreign investment and encourage economic growth, including tax incentives for businesses and improvements to infrastructure.
It is important to note that economic forecasts are subject to change and should be taken as a rough guide rather than a guarantee. It is always a good idea to do your own research and consult with a local real estate agent or lawyer before making an investment.
Conclusion
In summary, investing in real estate in Phnom Penh can be a smart move, but it’s crucial to do your research and work with a reputable agent and lawyer to ensure legal requirements are met and your interests are protected.
