Cambodia’s rapid development is no more under the radar. Everyone is aware of that, and everyone seems to make something of it. It is also quite apparent that Phnom Penh is in the center of that massive development.
As a result, the Phnom Penh real estate market has grown rapidly in the last few years. And from the look of things, that growth will continue in 2020 as well. Here are the top 9 reasons that the growth will persist through 2020.
#1 Excellent GDP growth
According to the World Bank, and many other acclaimed financial analysts, Cambodia’s average GDP growth will be approximately 6.8%. That’s a strong growth that will have a profound effect on the real estate market as well.
#2 Growing Middle-Class
The middle-class in Phnom Penh is expanding exponentially and is already making a difference in the real estate market. More and more young couples and families can afford to get a mortgage and buy a home for themselves.
#3 Rural Migration
People from rural areas are migrating to Phnom Penh for a better life and prosperity. Their influence is mainly on the low end of the market, mainly one and two-bedroom apartments. The migration is due to the high demand for the additional workforce.
More and more expatriates are coming to make the most of Cambodia’s economic boom. A significant percentage of the expatriates that come in Cambodia settle in Phnom Penh. Most of them demand well-equipped apartments and houses located in the center of the city or the nearby suburbs.
#5 The Demand Matches the Output
Unlike other real estate markets in Asia, the demand in Phnom Penh is in perfect harmony with the output. Therefore, there is no chance for a bubble effect or anything like that. To put it, all signs and data point to a healthy real estate market.
#6 High Demand for High Profile Real Estate Projects
The great economic boom in Cambodia has helped a lot of people to make a fortune for themselves. Then there are the rich executives and investors that live in Phnom Penh. All of which settle only for super-luxurious real estate. As businesses grow, the demand in this segment is excellent.
#7 Chinese Investments
China has established a strategic partnership with Cambodia. They are pouring billions of dollars in the Cambodian economy. Their interest is aligned with the development of Cambodia. And like most things in Cambodia, a big chunk of those investments arrive in Phnom Penh.
#8 Foreign (Western) Investments
Investors from all parts of the world, not just China, are also pouring more and more money in Cambodia. Most of those investors and investment funds have headquarters in Phnom Penh. Their investments might be spread all over the country, but a significant percentage are in local Phnom Penh companies.
Phnom Penh is also known as the Paris of the East. The exceptional French colonial architecture, the unique local cuisine, the welcoming locals, the culture, all that has made it very appealing to tourists and adventure seekers from all over the world. The demand for lodges has never been higher than in the last few years. According to the Cambodian bureau of tourism, 2020 will be an excellent year for tourism.