Realestate.com.kh has put together a very useful guide on the top 50 things to know when looking at investing in Cambodian property and real estate – here we take a look at just seven items on the comprehensive list if you are considering investing in the Kingdom’s property market.
1. What Is The Overall Investment Environment In Cambodia?
Cambodia has gained strong interest from both local and foreign investors due to its stable political environment, strong economic growth, investor-friendly policies, and strategic international relations. Key advantages include rising foreign direct investment (FDI), a prime geographical location, and multiple free trade agreements (FTAs).
Additionally, Cambodia benefits from selected trade privileges, low labour costs, and a young, growing workforce, making it an attractive and competitive investment destination with strong GDP growth predicted for the coming years buoyed by export markets and tourism.
• Stable Political environment: Cambodia is a politically stable country, currently led by Prime Minister Hun Manet, the son of former Prime Minister Hun Sen, who ruled for 38 years. Since taking on the role, he has focussed on strengthening and broadening foreign policies, while maintaining balanced relations. His leadership focuses on economic growth, improving livelihoods, and enhancing Cambodia’s global standing.
• Strong Economic Growth: Cambodia is among the 10 fastest-growing economies globally. From 2011 to 2019, GDP grew at an impressive 7% annually, outperforming the ASEAN average. Post-pandemic, the Cambodian economy rebounded in 2021 and continues to grow, with the World Bank forecasting 5.5 per cent growth rate for 2025 and 2026, while the Cambodian government projects 2025 growth to be 6.3 per cent.
• Favourable International Relations: Cambodia maintains friendly relations with most countries and favours an open economy, open and inclusive regionalism and international economic integration. China is Cambodia’s largest trading partner and the largest source of investment, while the US is its biggest export market.
• Foreign Investment-Friendly Policies: Cambodian investment policies make it an attractive destination for global investors – there is 100 per cent foreign ownership of enterprises, corporate tax exemptions, a low 20% corporate tax rate, duty-free capital goods imports, and unrestricted capital repatriation.
• Foreign Direct Investment (FDI): FDI in Cambodia has surged, particularly in real estate, manufacturing, and agriculture and according to the Ministry of Economy and Finance (MEF), FDI inflows reached US $8.1 billion from September 2023 to September 2024, reflecting growing global confidence in Cambodia’s investment potential.
• Ideal Strategic location: Located at the heart of Southeast Asia, Cambodia is a regional trade hub with excellent connectivity. Flights to major ASEAN cities take just 1.5 to 2.5 hours, making it an attractive base for multinational businesses and investment into new sea ports and airports will further enhance the opportunities.
• Free Trade Agreements: Cambodia has signed free trade agreements with many countries and regions, including agreements with China, South Korea, the European Union, and other countries/regions, which help expand market access and promote trade. Cambodia is part of the world’s largest free trade agreement, the Comprehensive Economic Partnership Agreement (RCEP).
2. Who Should Invest in Cambodian Real Estate?
With low entry costs, strong rental yields, and freehold ownership opportunities, Cambodia offers an attractive option for investors looking to expand their portfolio or secure a long-term asset.
According to Realestate.com.kh, investing in Cambodian property is ideal for individuals with the following goals:
• Affordable access to USD-based assets
• Diversifying risk through international asset allocation
• Earning passive income through rental properties
• Long-term capital appreciation from property value growth
• Creating a steady income stream for retirement
• Securing permanent ownership that can be passed down to future generations
• Owning a property for vacation, retirement, or future relocation
3. What Are the Housing Prices Like in Cambodia?
With its lower property prices and higher rental returns, Cambodia presents an attractive investment opportunity in the Southeast Asian real estate market.
Cambodia offers relatively affordable housing prices compared to other Southeast Asian countries. As of mid-2024, the average condo price in Phnom Penh is around US $2,500 per square meter, with an average annual rental yield of 5.3 per cent.
For comparison to other capital cities in Southeast Asia:
• Bangkok, Thailand: $10,000 per sqm, 4.5% rental yield
• Ho Chi Minh City, Vietnam: $5,900 per sqm, 4% rental yield
• Manila, Philippines: $5,300 per sqm, 4.4% rental yield
4. How Much Does an Apartment in Cambodia Cost?
Prices vary based on location, amenities, and property type, making Cambodia an attractive market for investors seeking affordable property options.
According to Realestate.com.kh, the price of apartments in Cambodia typically averages US $1,236 per square meter. High-end apartments in central Phnom Penh tend to be more expensive, while those in suburban or secondary areas are more affordable and can be purchased at an average price of US $420 per square meter:
• A 50 sqm one-bedroom apartment costs US $80,000
• A 80 sqm one-bedroom apartment costs US $128,000
5. Is Investing in Cambodian Real Estate a High-Return Investment?
Cambodian real estate offers competitive rental yields of 6-8 per cent annually, which is higher than in many developed cities. In Phnom Penh, rental prices typically start at US $300 per month, while larger apartments in prime locations can command rents exceeding US $2,000 per month.
To attract investors, some Cambodian-based developers offer leaseback programs, such as a 3-year guaranteed rental return and after the lease period ends, owners can either continue renting out the property or have it professionally managed. However, buyback programs are rare, making long-term rental income the primary investment strategy.
6. What Is The Property Ownership Duration In Cambodia?
Property ownership in Cambodia is generally permanent and can be passed down to future generations. However, Cambodia also offers long-term leasehold ownership, typically lasting 50, 70, or 99 years. Buyers should confirm the ownership type with the developer before purchasing a property.
7. Can Foreigners Buy Property in Cambodia?
Buying property in Cambodia is relatively simple for foreigners and is legally allowed for certain types of properties.
To purchase a strata-title apartment, foreigners only need to provide a passport, and there are no major purchase restrictions.
Cambodian law prohibits foreigners from owning land, meaning properties such as townhouses or villas require alternative ownership methods. The most common solution is purchasing through a trust, where the property is registered under a trust company, but ownership rights remain with the buyer.
Most real estate agents and developers assist with the necessary paperwork, and many have staff who can speak foreign languages to cater for the regional and international market, eliminating concerns about language barriers or complex procedures.
You can read the full list of 50 FAQs about the Cambodian real estate and property market online at realestate.com.kh