The Current State Of The Cambodia Real Estate Market: Trends And Predictions For The Future.

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The pandemic, the Russia-Ukraine war, and the global recession will all have adverse spillover effects on the Cambodian real estate market in 2023, keeping it under pressure and preventing it from recovering as everyone desired. The slowdown will not last long, as there are hopes that the market will improve from 2022 to 2023 because of the higher projected rate of overall economic growth. 

Cambodia’s real estate also depends on Chinese investors, which is expected to increase this year. Investors will choose to allocate resources in places that have a very beneficial effect on the Cambodian real estate market. It is a good time for those who want to enter the Cambodian real estate sector as the chances are it may rise.

Are you planning to invest in Cambodia Real Estate? If yes, then IPS Cambodia has listed the best residential and commercial property options, catering to all the investors’ interests. Do check out the options available on the website to know more. 

But before that, let’s first find out the details regarding trends and future predictions of Cambodia Real Estate to get an idea of how much your returns will multiply quickly. 

Current Scenario of Cambodia Real Estate Market 

The growth curve for real estate sales for the first half of 2022 has nearly been upward only. Customer questions and platform searches have increased recently. It is plain to see that the market is improving. 

5% of buyers of real estate in Cambodia are from the United States, 10% are from Singapore, 11% are from France, 10% are from Japan, 10% are from the United Kingdom, and 10% are from Italy. The remaining 4% come from other European nations like Belgium, Sweden, Germany, Hungary, and Spain. China continues to be the largest investor market, where 15% of all property purchases are made. The most sold property type in 2022 was a condominium.

Future Predictions for 2023 that will Emerge in Cambodia’s Real Estate Market 

  1. It Is The Best Investment Opportunity. 

It is the ideal time for people with extra money to invest in real estate at a bargain price. But the cash flow needs to be strong enough to hold off for at least five to ten years. In this situation, money is your company’s lifeblood.

  1. Do Not Invest In An Empty Land.

There might be better choices than investing in the land referred to as future development prospects today in 2023. The appeal of assets that generate income, such as homes, buildings, offices, or shopping centres, is more significant. If you buy land now, especially with limited cash flow, you could have to keep your money in storage for at least five or ten years before selling the land for a profit.

  1. No Secondary Market For Sales

It might not be easy to conduct secondary sales or property transfers from one end user to another. For instance, it would be extremely difficult or nearly impossible to sell a house in a borey to a different buyer, given the daily increase in the availability of new boreys. To purchase them from the developers, buyers have more options, more recent home designs, and better financing conditions.

  1. FDI In Speculative Real Estate Will Decline

Investment in land by local brokers will decrease due to the decline in foreign investor inflow. As a result, land values will also drop until new foreign investment flows in.

  1. Condo Costs Are Still Declining.

In 2023, condo prices will continue to decline due to a lack of foreign investors. Additionally, the abundance is further an element driving down condo costs. Most condo developers will start building the project once they’ve reached the pace they’ve set for sales. 

Sometimes, they might decide not to construct the project at all. For those who have already completed the project, changing the building’s uses to generate cash may be an option.

  1. Alteration of Use

Market participants in 2023 should be adaptable. It’s time to diversify, change asset classes, and modify how things are used. Self-storage, PBSA, international schools, workers’ housing, cloud kitchens, retirement living, cold storage warehousing, vertical farms, data centres, and backpacker hostels are a few more asset groups that demand attention.

  1. A Focus On The Customer

Customers will wield more power in the real estate industry in 2023. Therefore, project owners must employ additional strategies to retain and draw new clients. It’s critical for landlords to look out for their tenants, especially in areas where their tenants are concerned, given the amount of supply, the vacancy rate, and the slower rate of new business expansions or entries. Make sure, among other things, that the buildings are well-maintained and the elevators are functional. You should also periodically revamp the outside or interior of the buildings to keep them looking brand-new.

Conclusion

The real estate market in Cambodia will improve in comparison to 2022, but the rise in the market may be less than people wanted. But it is the best time for people to buy properties because you can buy the property at lower prices, and as it is predicted that the market will rise in the upcoming years and months, it will only raise the value of your investment. 
But being a foreigner, how to invest in Cambodia Real Estate? Worry no more, as Cambodian property experts have listed your options. Contact the experts at enquiry@ips-cambodia.com or book a property viewing appointment with IPS Cambodia to know more.

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