Phnom Penh is the new El Dorado for real estate investors in South East Asia. Some would say, that’s overreaching or something like that. However, it is numbers and statistics that point to that, not opinions.
Just in a few years, rents in many districts have increased by 500%. Rent yields are the third highest in the region – only the Philippines and Indonesia have better rent yields than Cambodia. Their economy is rapidly expanding, the foreign investments (mainly Chinese) are off the charts, millions of tourists visit Cambodia every year, and many other factors contribute to the expansion of the real estate sector. Phnom Phen, the capital of Cambodia, is in the center of that rapid expansion.
The demand for residential apartments and villas for sale in Phnom Penh is massive. If we look at the first quarter of 2019, that trend will remain throughout the year. The only trick is to decide which neighborhood to invest in? To that end, we have made a list of what we think are the best three neighborhoods in Phnom Penh that will bring investors the highest return.
There is always money in a luxury property. Riverside (Sisowath Quay) is the epiphany of luxury in the city. Almost all of the old buildings and constructions are replaced with new, high-end residential and commercial buildings. Buying a villa on the waterfront in Riverside is quite expensive. But, as it turns out, wealthy folks see Riverside as the perfect living place. At the same time, it seems that there are more wealthy people that want to live in Riverside than there are real estate slots. It means a bunch of wealthy folks outbidding each other for the privilege to live there. That alone shouts an investment opportunity!
#2 Wat Phnom
Wat Phnom and partially the northern part of the city is considered the city center by the locals. The fantastic colonial architecture, the tree alleys, various shops, hotels, and other facilities make its real estate in high demand. The area is also filled with western styled villas and apartments for every budget. In the past, the area was known only as a place where backpackers were able to find cheap lodging. There are some cheap hostels even today, but there are also many others as well. Some of which are high-end and staying there costs quite a bit. From the look of things, the smaller, cheaper hostels and hotels are being replaced by modern, more expensive establishments. Then there is the natural lake that soon is to be replaced by a huge development project.
All in all, real estate investors are already pouring money in this area. Buying a villa in Wat Phnom is something worth considering at the very least and an investment that can potentially bring huge returns.
#3 Boeung Kang Keng 1
This neighborhood is where you can find plenty of international organizations and multinational companies. It’s a community in which you can find foreigners from all nations living next to each other and in perfect harmony with the locals. Also in this area, you can find almost all foreign embassies. Consequently, real estate in BKK1 is expensive. The demand for residential real estate in BKK1 is strong without any signs for slowing down.