Cambodia is a modern country located in Southeast Asia on the Indochina Peninsula.
It is a constitutional monarchy by form of government.
It has a population of over 16,000,000 inhabitants.
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Cambodia, Phnom Penh, Sihanoukville
Cambodia, Phnom Penh
Cambodia, Phnom Penh
The Kingdom of Cambodia shares borders with Laos, Vietnam, and Thailand. The country's capital is Phnom Penh, with a permanent population of over 2,000,000.
Cambodia's shores are washed by the Gulf of Thailand. Cambodia is divided into 23 provinces and one municipality. Cambodia is a permanent member of several international organizations: the UN, the International Monetary Fund, the International Bank for Reconstruction and Development, the Asian Development Bank, the International Atomic Energy Agency, and the Association of Southeast Asian Nations.
Cambodia's economic prosperity is based on industrial production and a developed tourism industry. Light industry, agriculture, and the mining and processing of precious stones are particularly well-developed.
Foreign investment in the construction and real estate sectors is limited, as Cambodian law prohibits foreign nationals from owning land in Cambodia. The only option for foreign investors is to register a legal entity in Cambodia, with a Cambodian citizen owning 51% of the shares.
Tourism accounts for a significant percentage of the country's GDP, with over 4,000,000 tourists arriving in the Kingdom of Cambodia annually. Among the country's key advantages for international tourism are its low cost of vacations, pleasant hot climate, exotic cuisine, and friendly locals. Cambodia boasts a wealth of attractions, including ancient jungle temples and floating villages. The country's most famous temple complex is Angkor Wat. Cambodia's natural beauty is rich and diverse. Here you can find jungles, mangrove forests, beautiful waterfalls, and sparsely populated islands with pristine beaches. One of the country's main tourist cities is Sihanoukville, home to a significant number of hotels and developed tourist infrastructure, as well as several kilometers of beaches.
Currently, Cambodia's real estate market is one of the most affordable not only in Southeast Asia but also worldwide. Prices for luxury properties start at $40,000. Over the past decades, Cambodia has experienced significant growth in the construction sector, leading to improved construction quality.
However, the number of investors willing to invest in local real estate remains small. A significant proportion of these investors are from China. Real estate in Cambodia can be easily purchased with US dollars.
The average annual return on real estate ownership is 8-10%, which is high compared to other countries. Cambodia boasts low property tax rates and no capital gains tax on resale.
With the exception of land, foreigners acquire full ownership of Cambodian real estate. Foreign capital accounts for approximately 30% of all real estate transactions. Cambodia also imposes another rule regarding foreign ownership: their share cannot exceed 70% of all owners of residential and commercial space on the ground floor of a building.
The process of purchasing property in Cambodia takes approximately 2-4 weeks and includes selecting a property, verifying the seller's documents (title deeds and ensuring there are no encumbrances), signing a preliminary contract and paying a deposit (10-30% of the property price), completing the final contract, registering the property with the cadastral office, and obtaining a certificate of ownership.
The purchase and sale agreement is drawn up in two languages: Khmer and English. For foreigners, a valid passport with a visa is usually sufficient, but sometimes a certificate of no criminal record translated into English is also required.
The title registration tax is 4% of the assessed value of the property (usually significantly below the market value). Property tax in Cambodia is 0.1% per annum. A declaration of origin of funds is required for amounts over $50,000. After purchasing the property, foreign buyers have the option of purchasing property insurance.
Dozens of Cambodian and international (primarily Chinese) construction companies are constantly operating in the country, building new, modern, high-quality residential and commercial properties. The reputation and quality of construction by developers varies significantly, so it's advisable to thoroughly research the developer's history and completed projects before purchasing. Many Chinese developers operating in the Cambodian real estate market build apartment buildings tailored to the preferences of Chinese homebuyers. These buildings may be unusual for local residents and foreigners from other regions of the world.
Cambodia real estate is also popular among buyers from Japan, Singapore, South Korea, Australia, the United States, the United Kingdom, and other countries. Cambodian developers often offer attractive installment plans for foreign buyers.
Construction companies operating in the country build not only residential condominiums but also a variety of commercial properties, including office buildings, retail and warehouse space, and industrial sites. Commercial real estate rental prices are approximately 40% higher than residential rental prices of the same area. The average appreciation rate for Cambodian real estate is 6%.
Cambodia's main cities for real estate investment are the capital Phnom Penh, the tourist city of Sihanoukville, and the country's cultural center, Siem Reap. The capital is actively being developed with new buildings that combine residential apartments with numerous office spaces and commercial retail spaces. The average price of residential real estate here starts at $1,500 per square meter. Apartments managed by a management company, which takes a cut of the profits, typically no more than 30%, are particularly popular among foreign investors.
Average real estate prices in Phnom Penh:
Sihanoukville is one of Cambodia's most tourist-oriented cities. It boasts a well-developed tourist infrastructure, including miles of beaches, casinos, hotels, and residential towers. Roads are being actively repaired, and social infrastructure is being improved. Currently, real estate prices in this city start at $900 per square meter. In Siem Reap, Cambodia's most important religious city, home to the region's largest temple complex, Angkor Wat, developers are actively constructing villas, mini-hotels, and guesthouses.
Property Rental Costs in Cambodia
Average property rental costs in Cambodia (monthly rates):
Cambodia has a tropical climate with a high season lasting from November to April. The rainy season, with hurricanes and floods, lasts from May to October.
The country has three airports: Phnom Penh, Siem Reap, and Sihanoukville. Phnom Penh is the largest city in the Kingdom of Cambodia and the only metropolitan area in the country. Other cities are significantly smaller in population. The main tourist attraction of the Cambodian capital is the still-functioning Royal Palace, built in the 19th century on the Tonle Sap and Mekong rivers. One of the main tourist cities of Cambodia is Siem Reap, six kilometers from which is the largest temple complex in the country, Angkor Wat, which was built in the 9th-12th centuries. The National Museum of Angkor is also located here with numerous religious, cultural and historical exhibits. Also in this location are the ancient city of Angkor Thom, the Ta Prohm temple and the Bayon temple.
One of the unique attractions of Cambodia is the floating villages located on Lake Tonle Sap - the largest freshwater reservoir in both Cambodia and all of Southeast Asia. Due to its impressive size, it is sometimes called the inland sea of Cambodia. Usually, its area is about 3,000 square kilometers, but during the rainy season it increases to about 12,000 square kilometers. The floating villages located here are inhabited by refugees who arrived in the country in the middle of the last century. Since they had no right to own land and settle on it, they had to build houses on the water. There are several such villages in the region, and the population of the largest is more than 5,000 residents. These include the villages of Chong Knieh and Kampong Phluk. Many tourists come to Cambodia to taste the unique local cuisine, which combines the cooking traditions of other countries of Southeast Asia (China, Vietnam, Laos, Thailand and India), and also has its own unique features. The basis of the local cuisine, as in other countries of the region, is steamed rice. Such products as river fish, peanuts, mint, coconut milk are also actively used. For salads, locals use pumpkin, banana, bamboo, peanuts, cashews. Tukchey sauce is made from fish, as well as the famous fish paste prahok. Cambodia has a huge variety of delicious fruits, such as mango, banana, pineapple, durian, tamarin, longan, rambutan. The most common drinks are sugar cane juice and sterculia seed infusion.
To make a choice when buying real estate in Cambodia, you can check out the rating of real estate agencies. And if you are interested in a specific location, then check out the projects of Phnom Penh real estate developers.
