The Kingdom of Cambodia is a country in Southeast Asia in the south of the Indochina Peninsula, bordering Thailand, Vietnam and Laos.
The Cambodian real estate market is already well known to investors from China, the United States, other ASEAN countries, and MENA countries. Cambodia began to attract Russian-speaking interested parties relatively recently. Perhaps soon enough, it will occupy its niche and cease to be a cat in the bag for buyers from Russia and the CIS. The example of Indonesia is illustrative. It's hard to believe, but back in 2020 on HomesOverseas.ru There were practically no offers of villas and apartments in Bali. Today there are almost 500 of them! The island is in the focus of investors' attention, as the profitability indicators are noticeably higher than average. In Cambodia, the advertising ROI figures are even more impressive.
About the country
The stone cones of Angkor Wat towering over the jungle are the first thing that the search engine gives out when asking about Cambodia. The huge mysterious Hindu temple complex of Angkor, built by the Khmer almost a thousand years ago, is the main attraction of the country, attracting 3 million tourists annually. It is noteworthy that ancient structures were discovered relatively recently, in the middle of the 19th century. After the Khmer Empire gradually declined and was conquered by neighboring Siam in 1431, the inhabitants left here, and Angkor remained alone with aggressive tropical vegetation for several centuries.
Today, the city closest to the archaeological site is Siem Reap. It is an actively developing center of the northwestern part of the country with an international airport and tourist infrastructure. Over the past few years, he has changed noticeably.
Cambodia has had many shocks in its history, some of which it is still recovering from.
In 1863, Cambodia fell under the protectorate of France, which was rather a blessing, as it put an end to the claims of Thailand and Vietnam to these territories. The state managed to defend its independence not without difficulty in 1953. But the Cambodian people did not manage to enjoy freedom and prosperity, a real test lay ahead.
In 1975, after several years of civil war, in which neighbors and the United States were involved, the Khmer Rouge movement came to power under quite understandable patriotic slogans. Their leader, Pol Pot, became the head of state, who, through bloodthirstiness and madness, left far behind most of his European dictator colleagues, exterminating a fifth of the country's population, including the entire intelligentsia, in 4 years of rule. The political situation in Cambodia was finally stabilized only by the beginning of the noughties.
Today Cambodia is a constitutional monarchy with its capital in Phnom Penh.
Cambodia is characterized in reference books as an "underdeveloped agricultural country". However, the state has seriously aimed at attracting foreign investment and development. In terms of GDP growth (6.1%), Cambodia is already in first place among Southeast Asian countries and 3rd among all Asian countries. From 1995 to 2019, the country's economy grew by an average of 7.6% per year.
One of the key areas, of course, is tourism. In the first nine months of 2024, the kingdom received 4.8 million tourists from abroad. This is 22.2% more than in the same period last year, but still falls short of the figures for 2019. In the pre-pandemic year, the tourist flow reached a record 6.6 million people. In 2025, the government expects to attract 7 million guests from abroad.
Most of the tourists come from neighboring Thailand. The country is also actively visited by citizens of China, Vietnam, South Korea, Japan, USA, France, Great Britain, Indonesia.
There are practically no direct flights between Russia and Cambodia. Only one charter from Yekaterinburg has been launched. However, getting to the dock is not difficult at all. There are enough flights to Bangkok from Russian cities, and then an hour flight and you are in Phnom Penh.
Cambodia's population is almost 17 million people, about 2 million of whom live in the capital. Most of them profess Buddhism. Khmers are friendly, patient, and open, but they don't tend to flaunt their emotions. People here, as in other countries of the region, are relaxed and take life lightly.
The average age of Cambodians is 25 years (for comparison, the average age of Thailanders is 40 years). In other words, people in Cambodia are mostly young, they will start families, urbanize, develop the economy and, of course, support domestic demand for housing.
The monetary unit of Cambodia is the riel. The exchange rate of the national currency is pegged to the US dollar: 4050 riels are given for 1 dollar. The dollar is in use along with the real estate, which makes it easier for foreigners to make any calculations.
Regions of Cambodia
Phnom Penh is built at the confluence of the Mekong, Bassak and Tonle Sap rivers on a plain surrounded by rice fields. The capital is home to the King of Cambodia and his family, the Prime Minister and the government, the Parliament consisting of two chambers of the National Assembly and the Senate.
Phnom Penh is actively developing its transport infrastructure. In 2025, the new Teho-Tahmao airport will be launched, which, after completion of all construction phases, will become the ninth largest passenger traffic in the world, receiving 50,000 people per year.
Other large-scale infrastructure projects include the construction of the 180-kilometer Funan Techo Canal, which will connect Phnom Penh with the Gulf of Thailand; the construction of a bridge over the Bassak River; the construction of the Phnom Penh-Bavet expressway.
The peculiarity of the layout of the capital is that there are several centers in it. The architectural appearance is motley - Buddhist temples, pagodas and other buildings in the national style, the legacy of the colonial era, modern high-rise buildings.
The most popular area among expats is Boing Keng Kang 1, or BKK1. It is the center of the city with many institutions, shops, restaurants, cafes. Historically, foreigners settled in BKK1, and embassies of foreign countries are concentrated here.
New modern projects that are in great demand are also appearing in Boing Keng Kang 1. Studio rent will cost $500,800 per month, one-bedroom apartments from $600.
Note that BKK1 is part of a larger administrative entity Chamkar Mon.
Daun Penh is the business center of the capital. Another district 7 Makara in the western part of the city is considered to be actively developing and promising.
The second largest city in Cambodia, located a few kilometers from Angkor Siem Reap. Its appearance is typically Asian – a lot of tuk-tuks, street trade, flashy signs. The difference between Siem Reap is the abundance of tourists all year round. As a rule, both organized groups and solo travelers spend the whole day on excursions in the temple complex, and return to the city in the evening. New hotels and establishments are emerging here one after another. In just the last few years, Siem Reap has changed for the better. Perhaps there will be projects for investment.
Sihanoukville is located by the sea. At first glance, all the attention of foreigners should be directed at him. It will probably be so in the future, but not now. Why? Even 10 years ago, those tourists who came to these places felt like the discoverers of paradise - ideal sparsely populated beaches and bargain prices for food and overnight accommodation.
However, everything has changed. A few years before the pandemic, a large Chinese expansion began in the region. The Chinese have launched large-scale projects here, turning the city into a giant construction site. It was assumed that Sihanoukville would become a developed tourist center, crowded with vacationers, mainly from China. However, implementation has stalled for several reasons, primarily due to the Covid-19 quarantine.
The restrictions are long over, but Chinese developers are in no hurry to return to frozen sites, as many companies are going through hard times due to the housing crisis in their country. According to the city authorities, there are about 360 unfinished buildings in Sihanoukville and about 170 completed but empty.
So far, the resort is a rather risky investment destination. In this sense, the capital of the state is more understandable and predictable.
What is interesting about Cambodia for an investor?
According to realtors, the direction is gaining popularity. Big players come in and purchase unitsThe floors are still at the pre-sale stage. Demand is high, and price lists are constantly being updated. Prices are rising.
Today, Phnom Penh is the focus, as the resort of Sihanoukville is temporarily mired in problems. But not only for this reason. Large cities, especially capitals, tend to generate more income from investments (for more information, see our material).
So, what attracts foreigners to Phnom Penh?
1. Freehold, that is, full ownership, when buying apartments above the 1st floor. Such an offer is a rarity for Asia! Villas, houses, everything on earth is leased through trust companies.
2. There are no restrictions on the purchase of housing by foreigners.
3. Real estate prices are still lower than in other, more popular, capitals of the region. A studio in a new building can be purchased at a price starting from $ 60,000, a one-bedroom apartment starting from $70,000. Thus, the prospect of capitalization growth is visible.
4. High projected rental yields: up to 20% per year and above. There are many projects on the market offering to fix a guaranteed yield of 6.8% in the contract.
5. Flexible payment system: long-term installments from developers and a mortgage, which only requires a passport.
6. Low taxes. Income tax on the sale of an object: 0%. The annual tax on real estate purchased as a freeholder is 0.1% of the cost.
7. Calculations in dollars. You will not have to make unnecessary movements and lose money on the exchange rate.
8. The overall positive prospects of the country are political stability, economic growth, and the government's focus on attracting investors. Thanks to all this, major players are flocking to the market.
9. Transactions with Russians and Belarusians are relatively easy.
Of course, great opportunities come with certain risks. To minimize them, it is important to choose the right location, developer, and facility.
Cambodia as a destination for relocation
If you love Asia, with its colorful, hot, humid climate and general relaxation, then Cambodia may well become your second or main home.
To visit Cambodia, Russians need a visa on arrival, which they receive directly at the airport. You can apply for it in advance at on the website. The cost of the visa is $30. It is acceptable to extend such a visa once for another month. Then many people follow the path of a visa waiver and re-registration of a tourist visa. However, it is easier to apply for a long-term visa in advance.An Ordinary type E visa (it is also called a business visa, although it has nothing to do with entrepreneurship) It is issued for a month, with the possibility of prolongation up to a year.
Digital nomads are already coming to the country. They like to live in fully equipped new complexes.
You can also get a job in Cambodia and open a business here. The kingdom needs IT specialists, teachers, doctors, and entrepreneurs. Teacher's salary: from $1,500, doctor's salary: from $1,700.
Types of real estate and prices
Interesting objects in Phnom Penh from major international developers. High-end high-rise complexes have indoor and outdoor pools, spa centers, gyms, hotel services, and several security levels. International schools are already provided in some places.
At the pre-sale stage, the price per square meter of an apartment starts from $ 950. In a finished house, it is already $2,600 to $3,000, in branded projects it is up to $3,800.
The minimum budget for buying an apartment in Phnom Penh is about $50,000, the optimal budget is from $70,000 to $100,000.
Cambodia is a good option to diversify an investor's portfolio. It's at least worth considering.
Sources:
https://trends.rbc.ru/trends/social/66a3a2fe9a794740b6520169
https://www.worldbank.org/en/country/cambodia/overview
https://country.eiu.com/cambodia
https://www.state.gov/investment-climate-statements/
https://www.investasian.com/frontier-market/areas-phnom-penh/
https://www.investasian.com/frontier-market/cambodia-stocks-property
https://www.investasian.com/frontier-market/cambodia-stocks-property
