Top Reasons To Buy Land in Cambodia
You are most likely looking for ways to make your money work for you. One reason for you to even look up the top reasons to buy land in Cambodia is you may have heard that this is a great idea.
That being said, it is now time to lay down the facts so that you can make an informed decision when you commit to owning real estate property in Cambodia .
It is worth knowing what makes the country a great place to invest your money in today for a much better tomorrow.
Like any form of investment, it is important that you do your due diligence in getting the right information so that you can be sure of all of your options before deciding to make bold moves.
Looking at the Kingdom of Cambodia, these are just some of the reasons that makes it a good place to buy land property as an investment.
1. Fast-Growing Economy
In recent years, Cambodia has seen significant growth in its economy. According to the World Bank, “Driven by garment exports and tourism, Cambodia’s economy has sustained an average real growth rate of 7.7 percent between 1998 and 2019, making it one of the fastest-growing economies in the world.”
Although the pandemic has affected many countries globally, the country is looked at by many foreign investors which makes staying in Cambodia in the long term a great idea.
2. Increasing Land Value
The more development in infrastructure there is, the land where all those are built tends to increase its value. You may be wondering how this happens so here is a simple explanation. Take the case of Phnom Penh and Sihanoukville where many of its cities are seeing new foreign businesses setting up shop.
The more buildings there are, then the commerciality of the surrounding areas also increases. This brings more people in and as a result, when they buy, they bring in great business.
This increased foot traffic of people is one of the factors that help bring the price of land up. So when you buy land now, the more developed the place is, the sale price of your property can increase as well.
3. Infrastructure Developments
Just to give you an idea, rural development has been increasing as a result of investments coming in from China and Europe.
China Development Bank has helped to pump in $5.7 billion from 2007 to 2009. Now, we can see the expressway that is in construction linking Phnom Penh and Sihanoukville and that is already worth $1.87 billion.
The European Development Bank (EIB), together with the International Fund for Agricultural Development and the Royal Government of Cambodia, has provided $57 million in rural development investments in the country in 2020. About 200,000 families will benefit from the improvements in land, food supply and technology.
4. Young Workforce
Each year, you will find a growing number of Cambodia’s population getting employed where about 164,000 people enter into the workforce aged 16-64.
There are many who have also acquired technical skills which allowed them to shift from agriculture and become actively involved in other forms of production from 2015 up to the present.
You will find that this becomes an economic advantage for you when you set up shop in Cambodia to give you a positive boost to the business bottomline.
5. Easier Terms In Land Ownership
Transferrable leasing is what can give you security when you and your business get established in Cambodia, having a 50 year renewable lease agreement can give that needed flexibility of your options.
Only natural persons and legal entities having Cambodian nationality are the ones who may own real estate in the country. The legal entity must have 51% of its shares owned, individually or collectively, by a Cambodian natural or legal person.
There is a provision for foreigners to own up to 70% of the private units of a co-owned building like condos, detached or semi-detached buildings, and any other buildings with common structures, excluding the ground and underground floors.
According to Cambodia’s new Trust Law, foreign nationals may indirectly manage the real estate when they give a trustee the right to hold the title and manage the real estate for the benefit of the foreigner (Trustor) or the beneficiary of the trustor.
However, any person, regardless of their nationality, may have real estate properties that you can go ahead and rent without encountering any restrictions.
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