Rather than holding cash outside or within a bank account, investing funds into assets that are expected to appreciate is typically a wiser financial strategy. There are numerous investment opportunities available, but real estate situated in prime locations is likely to provide a more stable and higher-yielding return compared to other options. When discussing investment opportunities in Cambodia, the key locations to consider are Siem Reap, Sihanoukville, and of course, the capital city of Phnom Penh. These locations are likely to provide higher profits for real estate investments. There are several reasons why investing in real estate in Cambodia may be a wise decision. Some of the key factors to consider include: 

1. Reasonable Pricing:  Cambodia’s real estate market stands out from others in the affordability of its properties. The cost-effective nature of real estate in the country serves as a draw for investors looking for good return on their investment.

2. Impressive Rental Returns: Relative to other Southeast Asian nations, investors in Cambodia can achieve a substantially higher rental yields from the properties they hold. Upon investing in Cambodian real estate, property owners can count on realizing an exceptionally favorable return, with average rental yields reaching 6.96% per annum, according to the Global Property Guide – as of 25th March 2025.
   

3. Government Support: The Cambodian government actively supports property development and foreign investment through tax benefits and financial incentives. This has boosted the real estate market, created jobs, and improved infrastructure. Starting January 1, 2025, new property tax incentives offer stamp duty exemptions up to $210,000, with deductions for subsequent properties. Valid until December 31, 2025, these incentives aim to attract investment, support developers, and drive market growth.

4. Political Stability: Cambodia also has political stability, which makes it good for property investment. The same political party has been in charge since 1979, so there is no unrest or instability. This provides a safe and reliable environment for people investing in property.

5. Tourism Industry: Cambodia’s tourism industry is growing fast, which is causing more demand for properties, especially in popular tourist places like the capital Phnom Penh and Siem Reap. With more tourists coming, property owners can make more money by renting out their properties to meet the rising need for places for tourists to stay. The action of tourist coming can leads into rising price for property in Cambodia which is something that all property owner would love. The property will increase in price which makes the owner more profitable.

6. Infrastructure Development: Cambodia is investing a lot in building better roads, airports, and seaports. This is improving how well the country is connected, which makes it even more attractive to investors. The improved infrastructure helps businesses grow and brings in more investors from Cambodia as well as other countries.

7. Young Demographics: Over 60% of Cambodia’s population is under 25, so there are lots of young people. This large youth population represents a big potential market of property buyers and renters, which will keep demand for properties steady in the long run. Cambodia’s middle class is also growing, thanks to the country’s strong economic growth and more job opportunities. This growing middle class has more money to spend, and they are investing in housing, cars, and other goods and services, which is further increasing demand for properties.

Considering these factors, Cambodia stands out as a prime destination for property investment. Investors from Southeast Asia and around the world are increasingly recognizing its potential and seizing opportunities in the market.