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Most famous property in the world & Cambodia
When discussing real estate, many individuals commonly refer to houses or buildings. However, the realm of real estate encompasses a broader array of property types, consequently offering a wider range of investment opportunities.
In regard to real estate, the majority of people refer to houses or buildings. Nevertheless, there exists a variety of real estate categories, thereby presenting a diverse spectrum of investment prospects.
The subsequent section outlines some of the pivotal real estate categories, along with a succinct overview of investment considerations within each sector. This information is sourced from the book ‘Real Estate Investing 101’ authored by Michele Cagan, a distinguished financial expert and business consultant:
1) Residential Real Estate: This category comprises properties used for habitation, including houses, condos, apartments, and more. Investors can generally engage in this market by acquiring properties at lower valuations and subsequently selling for a profit. Renting out properties also generates a consistent cash flow. According to data from Z1 Data Co., LTD in Cambodia, as of the end of 2020, the supply of attached houses (condominiums and privately constructed flats) in Phnom Penh had surged to 186,309 units, while the count of condos had risen to over 109,035 units.
2) Commercial Real Estate: Encompassing supermarkets, retail outlets, office edifices, hotels, casinos, private medical facilities, and educational institutions, this category offers diverse functions compared to residential real estate. Additionally, cash flows from commercial real estate tend to be more stable due to larger occupancy rates per building as opposed to apartments. Lease contracts for commercial spaces commonly extend between 5 to 10 years. A report by CBRE Cambodia illustrates that by 2020, five community markets had been completed in Phnom Penh, accounting for a total area of 40,706 square meters. Additionally, 12 new office buildings were finalized.
3) Industrial Real Estate: This category pertains to industrial facilities and warehouses. Compared to commercial real estate, investing in industrial properties generally incurs lower costs, and although maintenance services are less expensive, the potential returns are more lucrative. As per Vtrust Appraisal, the highest increase in demand for space by 2030 is anticipated to be in support of the garment and food processing industries. The report forecasts a surge in area dedicated to garment industry services to 1,809,000 square meters and space for food processing plants to 507,000 square meters by 2030.
4) Land Real Estate: Land stands as the cornerstone among the various real estate types delineated above. Besides being utilized for constructing homes or commercial buildings, land finds applications in agriculture, encompassing crop cultivation and livestock rearing. Data from real estate agencies reveals nearly 25,000 land transactions in Phnom Penh during 2020, representing a modest increase from the preceding year.