Today, the two quarters of 2022 have passed, while the real estate sector is a critical role in supporting economic growth. In fact, in the last few years, epidemics have hit Cambodia, helping to boost Cambodia’s economy by an average of 6 percent, of which more than 1.5 percent comes from the real estate sector. What are the factors that help strengthen real estate in Cambodia?
First, it’s concerning to Foreign direct investment made by a business owner or investor who is not a local or cooperates with a local enterprise under the control of a foreigner. Investment laws in Cambodia are convenient for foreign investors, and Cambodia has the most preferential tax laws and is also a free-market country.
According to the 2019 annual report of the National Bank of Cambodia, China ranks first in terms of foreign direct investment in real estate in Cambodia. The investment capital is more than 1 billion riels, ahead of the other four big countries that are investing in this sector. Investment from some developed countries such as Singapore, USA, South Korea, Japan and etc.
Second, the domestic economic factor, as we refer to the income of the people and their household, the higher the income of the people, the higher the economic growth and the higher the employment rate, which will allow people to save money and invest in real estate to make a profit. It also helps to promote the development of related sectors.
In fact, according to a World Bank report in Cambodia in 2020, the crisis caused by Covid-19 has had a devastating effect on three major sectors of the Cambodian economy: tourism, exports, manufacturing, and tourism. Construction sector.
In 2020, the economy will grow at a negative rate of 3.1 percent, the worst record since 1994. As a result, the demand for real estate is declining, which is why the sector is stuck. These three sectors together account for more than 70 percent of the country’s economic growth and provide 39 percent of all paid employees in the country by 2019.
It causes the real estate sector to demand by the people, especially housing. Of course, this sector can not grow unless there is no demand.
Last but not least, domestic political stability is also important in helping and healing the country’s development. When there is not politically stable, let alone the real estate sector, there is no peace, and other sectors are in decline.
Cambodia has been through all kinds of fires, wars, and obstacles for many years and must prevent any political instability or incitement that causes unrest in Cambodian society. The factors of peace and political stability have laid a solid foundation for Cambodia’s economic development increment to achieve a high growth rate of 7.1 percent in 2018. The exchange rate is stable, and international reserves continue to rise.
In short, Cambodia is also an important base to attract foreign investment, which has changed the face of Cambodia on the international stage and is in the eyes or goals of international investors to invest in Cambodia in real estates, such as projects. Housing, condominiums, office buildings, etc.
