The real estate market of Cambodia has been consistently growing and is transforming, making it an attractive destination for investors searching for a lucrative opportunity. Phnom Penh real estate is growing significantly from residential developments to industrial lands and buildings.
Investing in real estate is a crucial step, so making sure that the decision has been made after thorough research keeping factors like location, type of the property, and budget in mind is essential. Investors can identify an investment opportunity by staying informed on the trends and conducting due diligence.
In this dynamic real estate, having a trusted partner who can guide you through the investment journey in affordable properties is crucial. IPS Cambodia’s name always comes up when speaking about real estate in Cambodia, as they have been the leading agency serving for over a decade.
Things to Look for in Phnom Penh Properties
If you are looking to invest in real estate, there are certain things to look for in Phnom Penh. Let’s delve into those factors-
Location Matters
Locations play a significant role when investing in real estate. The right location can majorly impact its demand, price and the potential returns from the same. Some of the essential reasons that can justify the statement – “considering location in property investment is a must.”
- Properties in prime locations appreciate with time.
- If the property is in a good location, it is easier to resell it when it comes.
- A well-located property can attract tenants, which helps in creating rental potential.
Some of the factors that can help you understand if the location is good or not includes-
- Its proximity to amenities like schools, hospitals and markets.
- Properties near major roads, highways, and public transportation hubs tend to offer better accessibility and convenience.
- Areas under the growth phase or if projects are lined up in that area indicate potential.
Property Type Considerations
It is essential to consider the type of property you wish to invest in. It could be residential, commercial, etc. Each property type has its own pros and cons, catering to different investors and risk tolerance.
Residential-
These property types include condos, family homes, apartments, townhouses, etc. Investing in a suitable building or location can attract multiple tenants, increasing the chances of rental income.
Commercial-
It includes properties like- office space, industrial warehouse, retail space, etc.
If the location is in the prime market area, it can yield high rental income, but it often requires long lease terms and includes significant maintenance costs.
Quality of Construction
You must assess the quality of construction in properties you wish to invest in. This could include inspecting-
- Structural integrity- Examine if there is any sign of a crack, uneven settlement, or water damage. Check the roof for any signs of leaks or cracks and signs of deterioration.
- Plumbing and electrical systems- Evaluate the signs like leaks or inadequate water pressure. Any signs of faulty wiring and outdated electrical systems show poor quality.
- Finishing and materials used- If the quality of the material is good, it shows signs of durability and sustainability.
Legal Compliance
Legal requirements and regulations for property ownership in Cambodia have been transformed in recent years. The legal system now ensures that the laws are more transparent and investor-friendly. The government has taken steps to streamline the investment process and simplify property ownership for foreigners.
With the help of expert agents at IPS Cambodia, all the paperwork can be handled very quickly and smoothly. At IPS, they take all the formalities like-
- Conversion of Soft title to Hard title
- Acquisition/Transfer of Title/Ownership
- Property company internal documents for ownership transfer
- Help offer foreign investors a seamless journey of investing in the Cambodian market by guiding them through the necessary paperwork to form a Land Holding Company (LHC) in Cambodia.
Rental Yield Potential
When deciding to invest in real estate, it is usually to start a passive income, so the property you wish to invest in must have the rental yield potential.
Factors that can influence rental yield include-
- Property location can affect the amount you can gain from the property; if the area is prime, then you can expect an excellent rental income from the property.
- Demand and supply- If the property you invested in is even in demand or not.
- Type of the property- It is easier to find a tenant for an apartment than an office space.
Capital Appreciation Opportunities
It’s an essential factor to consider whether the value of the property will increase over time or not! Understand the potential the property has for Capital appreciation.
Several factors contribute to property appreciation in Phnom Penh. Some of them are-
- Economic growth- If the country’s economy grows, the demand for residential and commercial properties will increase, ultimately contributing to the properties price hike.
- Growth in the tourism sector- This has increased the demand for hotels, resorts and wellness centres in the country.
- Limited supply of quality properties- While the demand is growing, the supply of quality properties is still less, which has increased the pressure on the prime properties and contributed to capital appreciation for existing properties.
Property Management Services
Property management services involve operating and managing the real estate on the owner’s or the investor’s behalf. These are professional services offered by many real estate agencies, ensuring that the properties remain profitable over some time.
IPS Cambodia also provides these services, which includes
- Providing maintenance services
- Rent collection
- Tenant screening services
- Furnishing and inventory management
- Property Marketing
- Tax payment
Hiring professionals like IPS Cambodia for property management services offers several benefits to investors like-
- Time-saving- As they take up everyday operations, keeping the investors free from this.
- Experience and expertise- As they ensure efficient operations while maximising the returns.
- Increased property value- As the properties will be well managed, it helps in preserving the value of investment properties
Conclusion
If you are also looking to invest in properties in Phnom Penh, go ahead and do so, and with the help of these tips, ensure that you are on the right track. From the property management services offered to the quality of construction, look for the aspects mentioned above, as this will help in good returns on your investment.
Working with reputable agencies like IPS Cambodia has many benefits as the process can be seamless, and their agents can help you with market insights and showcase their diverse range of portfolios from which you can select any property for investment purposes.
Connect with IPS Cambodia, as they will help you make an informed decision in this dynamic Cambodia property market.