Cambodia is a rapidly developing country sandwiched between Laos, Thailand, and Vietnam. Like its neighboring countries, foreign investors have eyed Cambodia for its incredible potential for long term high yields in the coming years. Here’s more of why you should get a Cambodia property investment:
Steady year-on-year GDP growth
In a report by World Bank, Cambodia beat Singapore, Malaysia, and Thailand’s average year-on-year GDP growth from 1999 to 2013. The country had an average of 8.2 per year. This growth of economy is reportedly driven by the tourism, garment, construction, and real estate sector.
Inguna Dobraja, World Bank country manager for Cambodia, said: “It is encouraging to see that Cambodia’s economic growth will continue to be strong in the next few years, and that poverty rates will continue to decline. Going forward, it is important to ensure that the country invests in pro-growth public infrastructure underpinning its high growth trajectory, while also focusing on building skills for future growth areas and strengthening public sector delivery.”
Foreign investments are openly welcome
Since 1994, Cambodia has opened its doors to foreign investment. It may well be one of the most welcoming countries in Asia for foreign investments. For instance, companies could be completely owned by foreign investors. For real estate, it means foreign developers don’t necessarily have to partner with Cambodia property developers unlike in Thailand and Vietnam. There are also tax holidays for as long as eight years.
It is true fact that living in Cambodia costs lower than living in Thailand. Numbeo reports that rent prices in Cambodia are 6.78% lower than in Thailand. Groceries prices, on the other hand, are 5.24% lower in Cambodia. Cambodia has cheaper telecom and internet fees due to high competition. Getting a Cambodia home means you’ll get to spend less day to day.
Cambodia is sandwiched between two large economies: Thailand and Vietnam. This gives way for easy travels and tourism to the country’s young demographic. When you buy Cambodia property, it means you can also travel easily to and from neighboring countries. It also serves as a gateway for better government ties and connections between these countries as well as potential “economic spillovers”.