Why Invest in Condominiums in Cambodia?
There are many benefits to purchasing a condo in Cambodia as a foreign investor. Some of the most notable benefits include:
- Affordability: Cambodia is one of the most affordable countries in Southeast Asia, and this is reflected in the cost of real estate. Condos in Cambodia can be purchased for a fraction of the price of condos in other countries in the region. Refer to the graph below.
Average cost/m2 to purchase inner-city condos (2023)
Reference: Numbeo
- Growth potential: Cambodia’s economy is growing rapidly, and this is leading to an increase in demand for real estate. Condos in Cambodia have the potential to appreciate considerably in value over time.
- The right to own a property: Under Cambodian law, foreigners can legally own condominiums under a strata title. This means that you will have the legal right to enjoy 100% ownership of your condo and use it as your primary residence or as a rental property.
- The right to transfer ownership: You can freely transfer ownership of your condo to another person, whether they are a foreigner or a Cambodian citizen. This makes it a good investment, allowing you to sell your condo for a profit in the future.
- Rental income: Condos in Cambodia can be rented out to tenants, providing a steady stream of income for investors. The rental market in Cambodia is very strong and there is a high demand for rental properties. See the graph below.
Average Gross Rental Return Per Annum for Inner-City Condos (2022-2023)
Reference: Numbeo
- Visa benefits: There are several types of visas for foreign investors in Cambodia that come with their own advantages, contributing to an investor-friendly environment, attracting foreign capital, promoting economic growth, and facilitating the establishment and success of business ventures in the country.
Obtaining visas in Cambodia is currently much easier and less restrictive than some of its neighbouring countries in Southeast Asia. - Tax benefits: There is currently no capital gains taxes on residential property sales in Cambodia. This means that investors who sell their condos at a profit will not have to pay any taxes on the sale. A capital gains tax of 20% of the profits has been delayed by the Cambodian Government for the 3rd time until end of 2024, and is most likely to be delayed again due to the government’s desire to support economic growth in the post-pandemic era.
- The right to mortgage your condo: You can use your condo as collateral to obtain a mortgage from a bank. This allows you flexibility to manage your property portfolio to achieve your other financial goals.
- The right to inherit your condo: In the event of your demise, your condo will be transferred to your designated heirs in accordance with your will. This ensures that your family retains ownership of the condo even if you are not a Cambodian citizen.
