Ultimate Guide on How to Buy Industrial Real Estate in Cambodia

When you’re contemplating what property to invest in Cambodia so your money grows, at the top of the list are industrial real estate properties. They are facilities that act as the backbone of businesses since they’re vital to creating, manufacturing, and shipping products and goods. In this regard, they have multitudes of usage in a variety of industries—allowing you to further increase your business’ or other businesses’ profit.

If you want to dip into the industrial real estate market in Cambodia , continue reading this detailed guide on how you can do it here.

Cambodia’s economy has continuously grown over the last few years, increasing trade, tourism, and exports. Not only that but the country’s GDP has only grown with 2012 marking 14.05 billion US dollars up to the highest in 2019 when Cambodia marked 27.09 GDP. Considering the pandemic, Cambodia remained quite stable and not as volatile as other markets when it capped off 25.29 in 2020.

Additionally, according to Asian Development Bank, Cambodia’s GDP is expected to grow by 1.9% in 2021 and 5.5% by the following year. This means, among other investment opportunities you should take advantage of, buying into the industrial real estate market of a stable country should be at the top of your list.

There are different types of industrial real estate properties you can invest in. Here are some samples of these properties:

• Warehouse (General, manufacturing, or distribution)
• Cold storage facilities
• Office space

Cambodia Free Trade Agreements

Before you buy your property, you should know that Cambodia has few free trade agreements with different countries which contributes a lot to the economy. At the top of this is China that contributes to 43% of export goods and services to Cambodia according to Asia Property HQ.

What this means is that whether you’re a local or foreign investor, you should do your due diligence into what markets and industries you can dive into when you own an industrial property. This research would help in guaranteeing that your investment in this type of property will be successful.

Where To Invest In Cambodia?

When investing in industrial real estate properties in Cambodia, you should look into big cities or those thriving in business and commerce. Currently, the top three cities that are ideal for you to buy industrial properties are the following:

Phnom Penh

The heart and capital of Cambodia, Phnom Penh is one of the hot zones of businesses in the country. Besides this, it’s also a popular spot for tourists, allowing for numerous businesses to start and thrive here. This means there is a large number of locals and foreigners who reside and work in the city, making it the ideal place to invest in industrial real estate properties.

Not only that but parks, tourist attractions, and a variety of economic zones are located in Phnom Penh. This means a lot of investors have already set up shop in Phnom Penh and it’s the top city in Cambodia at the moment to invest in, especially considering that industrial properties need to be close to businesses.

Sihanoukville

Following closely after Phnom Penh is Sihanoukville, which is considered the tourist capital of Cambodia. Since it heavily attracts tourists and locals to visit it due to the numerous attractions, sites, and more that exist in the city, multiple businesses and commercial entities have set up shop. This means buying an industrial property in Sihanoukville is a fantastic idea since it’s a hot zone for manufacturing, selling, buying, and more.

Additionally, the Sihanoukville Special Economic Zone exists here which will dive deeply into the following products in two phases:

• Garments & textiles
• A variety of wood products
• Luggage & leather goods
• Materials for construction
• Auto parts & tires
• Hardware machines
• Chemicals
• And more.

Battambang

One of the cities that has been thriving over the years and has highly contributed to the economy is Battambang. While it is not as popularly known to foreign investors as other cities, it is conveniently located at the heart of the country’s rice-producing province.

Additionally, it has been the center of commerce by the country for centuries, ever since it was the trading city in the 18th century set by the French. Not only that but Battambang is the city wherein most agricultural products are processed before it’s shipped to other countries.

Is It Possible To Invest As A Foreign Investor?

Local investors would find it easy to invest in industrial real estate in Cambodia since it’s urged by the law. Only residents can buy properties, land, and under different types of property titles. However, there is a way around it for foreign investors. Here are some options for local investors to buy an industrial real estate property in Cambodia:

• Setting up a landholding local company and buying property through it.
• Become a Cambodian resident
• Marry a local and buy properties afterwards
• Lease the property for 15 to 50 years
• Buy property using a trust agreement with a local.