Phnom Penh is one of Cambodia’s most prominent attractions for the condo market. The city currently boasts a population of over 2.5 million, while the expat population is expanding yearly. The increase in the expat population is a simple indication that people will be looking for affordable rental properties. The condos can serve the purpose accurately.
The cost of condos (purchase and rental) in Phnom Penh is comparatively lower than in European and Western countries. As the demand for properties rises, condos’ rental and purchase prices are at an all-time high in Phnom Penh. Nonetheless, there are still cheap condos for sale in Phnom Penh. This can only be driven by exploring the available market.
Factors Driving the Demand for Cheap Condos
The demand for cheap condos is rising in Phnom Penh, with people looking for affordable living options. Well, here are some of the major factors driving the increasing demand for cheap condos:
Growing Urban Population and Housing Demand
As the population of people in the city increases, so does the demand for housing. While buying a property can be expensive, condos can be much cheaper. Furthermore, condos have little maintenance hassle, so people prefer condos over villas or apartments.
Rise of Young Professionals and Expatriates in the City
Owing to the affordability of living and rising employment opportunities, many young professionals and ex-pats are settling in the city. Compared to apartments and villas, it is much easier to buy condos. Moreover, condos are a great investment, generating higher returns.
Economic Factors Influencing Affordable Housing Demand
People are looking for affordable housing, which is why they prefer condos. The prices of properties keep fluctuating, but the returns from condos will always be on the higher end.
Benefits of Investing in Cheap Condos
Investing in cheap condos can have way more advantages than you can imagine, some of the most prominent ones include:
Entry Point for First-Time Investors
If you’re a first-time investor, cheap condos can be an effective way to get started with an investment in the real estate market. Even with a small capital, you can start the investment while expanding your investment portfolio.
Long-term Appreciation
Even though cheap condos are available for a lower price, they have a significant potential to grow in time. The value will rise as the real estate market grows. This will also be effective if the housing demand increases. If you sell your condo after some time, you will always be on a profit.
Rental Income Opportunities and ROI
If you buy a condo for cheap and rent it out, the return that you’d receive will be significantly higher. The rental income will eventually help to cover all the extra costs of ownership like maintenance, property management fee, and mortgage payment. As a result, you will always have a positive return on investment.
Diversification of Investment Portfolio
Investing in cheap condos from the beginning can help you expand your investment portfolio. You will easily be able to combat the various risks. As a starter, consider investing in cheap condos. The hedge will offer you protection against market fluctuations.
Considerations Before Investing
Investing in a condo is never easy, especially when you don’t have a plan. Well, here are some of the major considerations before you invest in these cheap condos in Phnom Penh:
Location
The condo’s location in Phnom Penh is important in determining its appreciation. The cost will be higher if the property is well-located, with proper amenities and infrastructure. It will also have a higher demand for the times to come.
Infrastructure Development and Urban Planning
Before you invest, it is always advisable to check the upcoming infrastructure projects in the local area. If new projects are coming in the future, such as new roads or commercial centers, the property value will increase. This can help you achieve a positive return on investment.
Developer Reputation and Project Quality Assessment
If there’s a specific developer you’re working with, you must always check their reputation. If the developer has a positive reputation in the market, they will surely provide high-quality properties. Moreover, they will take proper care of the property, which will help to increase its value.
Legal and Regulatory Factors for Foreign Investors
Foreign investors in Phnom Penh must be mindful of the legal and regulatory framework. You must be familiar with property taxes and various restrictions that may be imposed on you as a foreign investor.
Conclusion
The cheap condos in Phnom Penh can be really good investments. They provide a wide range of attractive opportunities. However, it is advisable to reach out only to professionals to find attractive and higher investment opportunities. Experts like IPS Cambodia have the necessary expertise in the field and can help you find the perfect properties for investment. This will be important in helping you make investments aligning with your financial goals.
So, once you’ve made up your mind about investments in Phnom Penh, contact IPS Cambodia.
