With a strong political and economic outlook, Cambodia has been attracting high volumes of foreign investments in the region. Many expatriates have relocated to Cambodia, particularly in Phnom Penh, due its low cost of living. According to CBRE Cambodia interview, the real estate market in Cambodia is experiencing a boom in recent years. Many new development projects have sprouted across the region the past two years, with foreigners investing mainly in condominiums, SOHO units or strata offices. It is predicted that foreign investment will move towards the commercial sector such as hotels, retail, serviced apartments and entertainment.
Chinese Buyers Snap Up Properties In Phnom Penh
Chinese investors are known to be opportunistic and are always looking for investment opportunities outside of China. Cambodian properties are proving to be attractive and many properties have been snapped up by them. In response to the high property demand, many development projects are under construction in Phnom Penh currently.
Increase In Demand For Office Space
With its pro-business government and ease of setting up operations in Cambodia, many multinational companies are setting up offices in the region. This is expected to increase over the next few years. The demand for office space in Phnom Penh has increased by approximately 26,000 square metres in second quarter of 2017, according to Knight Frank’s research on Cambodia’s real estate. The demand for office space is estimated to increase to 531,726 square metres by 2020.
Growing Demand For Co-Working Office Space
To meet the needs of businesses’ short-term rental space, co-working office space is gaining popularity in Cambodia. These shared spaces are ideal for SMEs and start-ups who are looking for a small office area and low rental cost. There is an increase in co-working office space in Phnom Penh and Siem Reap. Notable co-working spaces in Phnom Penh include Impact Hub Phnom Penh, Small world and Colap.
Demand For Serviced Apartments Remain Strong
According to Knight Frank’s research on Cambodia’s real estate, total supply of serviced apartments in Cambodia has increased by 16% in 2nd quarter of 2017 as compared to 2016. Although there is an increasing supply of serviced apartments, occupancy rates remain stable. Demand for serviced apartments is expected to remain strong as expatriates are favourable of the service offerings provided by serviced apartment developers.
Phnom Penh’s Real Estate Outlook
With increasing foreign investments and more companies setting up offices in Phnom Penh, demand for office space and serviced apartments will increase in the coming years. The real estate industry will continue to grow steadily.
All information in this article is correct to the best of our knowledge and belief at the time at which the article was originally published.
This article was written in the author’s personal capacity. Any opinion expressed in this article are the author’s own and
do not reflect the view of Vivaz Capital Pte Ltd.
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