If there’s one sector that has undergone massive and significant changes in Cambodia, it has to be the real estate market. Every year, Cambodia’s real estate market has something new to offer.
With 2023 bringing such beautiful insights into the property market, we can only imagine what 2024 will look like. To bring that into the limelight, IPS Cambodia has tried to figure out some of Cambodia’s most profitable investment areas.
While we look into the current state of Cambodia’s real estate market, let’s also analyze the driving factors of profitable investment in 2024.
Cambodian Real Estate Market Overview
The Cambodian real estate market has undergone a massive change in the past decade, especially in the real estate sector. The real estate market is expanding at a steady rate across major arenas like residential, commercial, and industrial.
Rapid urbanization and increasing wealth contribute to increased demand for real estate properties in Cambodia. The growth in this sector is, therefore, driving investments from different countries in Cambodia.
Economic Landscape of Cambodia
The economic landscape of Cambodia has a huge influence on the growing real estate sector. As Cambodia has managed to sustain a consistent GDP over the years, the economic condition of the country has improved, too. The Cambodian government forecasts a GDP of 6.6% growth by 2024. Some of the key factors driving Cambodia’s excellent economic condition include the rising burgeoning class, tourism growth, and increase in agricultural output.
Considering these factors, the government is also encouraging foreign investments in their lands. They have indeed brought about various business-friendly policies allowing businesses to invest here, placing Cambodia in an important position for Southeast Asian economic players.
Key Trends for the Real Estate Market in Cambodia
As the real estate market of Cambodia expands, you must keep an eye on the changing trends. Why? That will help you decide where to invest to get the maximum returns.
Condo Market
Urbanization and an increase in the middle-class population have called for an increase in demand for condos around Cambodia. As living preferences are changing, more people are turning to condos, considering the ease of living that these have to offer. Local and international developers are bringing about the growth of condos with a diversification in the market to fit the urban lifestyle requirements. Investing in a condo can bring significant returns, especially when you put it up for rent.
Office Market
With so many businesses investing in Cambodia, the demand for office spaces has increased significantly. The expansion of different industries and the growth of local and multinational companies drive the demand for office spaces. The developers are using state-of-the-art technology to bring about the best office spaces in Cambodia to cater to the changing demands of businesses. The improvement in office spaces will further fuel an increasing interest from foreign companies.
Land Market
Considering the strengthening economic conditions of Cambodia, this may be the perfect time to start investing in the land market here. As urbanization grows, the demand for properties grows, too, so when you sell the purchased property later, you will receive a higher amount. The changing pricing dynamics have a huge role in Cambodia’s changing land market. Furthermore, the government is also bringing measures to encourage transparency and increasing investments in the land market.
Rental Market
The rental market of Cambodia – residential and commercial – has witnessed a significant rise in demand in the past few years. Incoming industries, the rise of ex-pats, and the growing number of tourists have been fueling the demand across Cambodia’s rental market. Therefore, residential and commercial properties are being developed with different budgets catering to different lifestyle preferences. The rental market is constantly evolving and may be one of the best avenues to invest in Cambodia.
Retail Market
The Cambodian retail market has also undergone a massive change, considering the changing retail demands of the people. With time, more and more retail complexes are being set up to cater to the needs of the citizens. Urbanization and the demand for modern retail spaces have led to developers establishing high-end malls. This expanding footprint is, therefore, significantly boosting Cambodia’s real estate sector, leading to better development.
Residential Market
The residential market in Cambodia is at an all-time high, mainly because of the demand from the rising middle class and expats. Usually, the burgeoning class is moving towards purchasing properties like apartments, condos, villas, and more. We’ve noticed innumerable queries for the residential properties listed with us in the residential sector. Surprisingly, most people want to buy rather than rent.
Co-working Spaces
In the past few years, numerous co-working spaces have been established in Cambodia because of the evolving work culture. People are looking for a better and more flexible work environment, which has led to the establishment of numerous co-working spaces. If you plan to invest in the Cambodian real estate market, co-working spaces can be an ideal choice, considering the huge return they’re likely to bring.
Final Words
Considering the growth of Cambodia and rising demand in the real estate sector, it is pretty evident that the industry will keep growing in the coming years. In 2023, Cambodia saw a massive shift in its real estate sector, which will likely grow in the coming times. The real estate sector of Cambodia has seen a massive focus on sustainability, technological developments, and modern amenities that comply with local laws and regulations.
We’re now only helping bridge the gap between the investors and buyers and the property they choose. As the sector grows and changes, driving investments here can bear fruitful results! To learn more exciting updates on the Cambodian real estate market, connect with IPS Cambodia.
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