With a rapidly growing economy, favorable tax incentives, and a low cost of living, Cambodia has attracted many people to the commercial real estate business. Foreign direct investment in 2023 in Cambodia has almost increased yearly, with China being the highest investor this year.
If you want to buy a warehouse, office space, or any commercial land for investment in Cambodia, get a perfect property with the help of IPS Cambodia.
Meanwhile, the country has attracted a lot of investment from foreign companies and investors, particularly in the commercial real estate sector. So here goes the perfect reason to invest in Cambodia’s commercial real estate market. So, if you are looking for the right procedure for investing in Cambodia’s commercial real estate business, read this blog further.
Current Scenario Of Cambodia’s Real Estate
Cambodia’s commercial real estate market is seeing increasing demand and prices from local and international investors, while prices are declining because of the growth of new market properties.
In 2022, the total value of commercial real estate transactions in Cambodia reached $1 billion and is expected to grow in 2023 and the coming years. Besides, the average price of office space in Phnom Penh, the capital of Cambodia, increased by 5% in 2022 to $1,100 per square meter. The average price of retail space in Phnom Penh increased by 3% in 2022 to $900 per square meter.
The main reason for seeing this incline is the strong economic growth. Many job seekers and families are ready to settle in Cambodia, allowing them to start new businesses. Direct foreign investment and rising tourism are other major reasons for Cambodia’s commercial real estate property demand.
This shows Cambodia’s commercial real estate industry is extremely promising and has great growth potential. Though some obstacles exist, like scarce land supply, unskilled labour, and political uncertainty, the market is still predicted to thrive in the upcoming years.
Step By Step Guide To Invest In Cambodia’s Lucrative Real Estate
Do A Thorough Research
We all buy properties for long-term investments, which takes our money and time. Therefore, research the current and future market trends, demand for commercial real estate properties in your preferred area, and growth potential before investing.
Get In Touch With A Trustable Agency
Before taking matters into your hands, contact a local real estate agency in Cambodia and look out for the best deals. Besides, they will also help you do all the legal formalities and paperwork. With their extensive contacts, you will find a property at negotiated prices.
Invest In The Right Type Of Property
From budget, location, and size to the potential for future growth, you should keep many things in mind while selecting a property for your investment.
Get A Professional Appraisal
This will give you a realistic idea of the property’s value and help you avoid overpaying. Investing is an exciting venture, but remember to take your time, research, and make strategic decisions for long-term success.
Negotiate The Prices
If you like a property, start negotiating the prices with the dealer immediately. Remember that you can walk away if the seller refuses to accept your offer. Besides, some trusted agencies will give you the right price for your investment to maintain their goodwill.
Sign The Deal And Ensure The Paperwork
Once both parties agree on a price, close the deal before someone else takes it. Sign all the required paperwork and transfer the money. Now that you are a property owner, it’s essential to manage it effectively.
Manage Your Property
Finding tenants, setting up your office, collecting rent, and repairing whenever necessary should be on your to-do list.
Tips To Take Care While Investing In Cambodia’s Commercial Real Estate Market
- Before finalising, it’s always necessary to research and look deeply into the property. Know your seller takes all his original details and past activities in the area.
- There are many properties in Cambodia. Therefore, don’t take a quick decision and invest in a property you don’t feel financially comfortable with.
- The Real Estate market has always seen the best and the worst. So, be prepared for the risks of investing in real estate, like market fluctuations and unforeseen circumstances.
And if you need to know or explore more of the real estate market in Cambodia, get advice from a local real estate agent or agency.
Now you know how to invest in Cambodia’s commercial real estate market and why this is the right time. It’s better to hire an agency to find you the best property with a wide range of services, including property management, investment consulting, and property development.
If you’re interested in investing in Cambodia’s commercial real estate market, contact IPS Cambodia. Their top priority is to offer exceptional services to all clients and support them in achieving their investment objectives.