Cambodia’s Citizenship by Investment Ranked 11th, Emerges as Key Catalyst for Foreign Real Estate Interest

• 31 July 2023
• Local News
• 1692 Views

Cambodia’s real estate market is witnessing a surge in foreign interest, fuelled by its impressive Citizenship by Investment (CBI) program, which recently earned the remarkable 11th spot in Henley & Partners’ global rankings. This naturalisation offers foreign investors the gateway to become freehold landowners in the country.

For years, foreign investors looking to invest in Cambodian land had to navigate complex regulations, often resorting to joint ventures with locals. However, the CBI program revolutionises this landscape, providing a straightforward and secure pathway to holding Cambodian land in its own name. Hollywood icon Angelina Jolie’s prominent example demonstrates the program’s appeal, as she not only acquired Cambodian citizenship but also invested in the country’s burgeoning real estate sector.

Daniel Ho, Co-Founder, and Group Managing Director of Juwai IQI, asserts, “Cambodia’s real estate market is witnessing unprecedented traction, fuelled by heightened interest from foreign buyers. The re-opening of China’s borders in 2023 has spurred substantial Chinese investment, amplifying the number of large investors eyeing Cambodian land by more than tenfold.”

Despite global uncertainties, Chinese fixed-asset investment soared by an impressive 67%, reaching US$2.32 billion in 2021, underscoring the country’s enduring appeal as a lucrative investment destination. Bolstered by robust domestic demand for real estate, an exhibition in Phnom Penh last August witnessed astounding success, generating a staggering US$30 million in property sales in a mere two days, reaffirming Cambodia’s allure for astute investors.

The allure of Cambodia lies not only in visa-free travel but also in the abundance of developable land and a spectrum of transformative infrastructure initiatives. The US$16 billion coastal entertainment hub in Sihanoukville and the $4 billion high-speed rail link between Phnom Penh and the Thai border exemplify the country’s commitment to progressive development.

With the attractiveness of large plots of land and the vibrant portfolio of large-scale infrastructure development projects, Cambodia is the only country in ASEAN where Cambodian foreign investors can own the land. Important for investors who want sustainable growth and long-term local business opportunities. The success of the Cambodian Citizenship by Investment Program focuses on empowering foreigners to actively participate in Cambodia’s emerging economy through the purchase of government-approved land. This unique opportunity, along with emerging infrastructure projects, has attracted the attention of investors with the vision of growth and prosperity.​

Chinese investors form a significant cohort within the program, recognising the potential for growth akin to China’s infrastructural boom three decades ago. Embracing the CBI program, approximately 300 Chinese investors have obtained Cambodian citizenship since 2018, signifying the program’s resounding global impact.

Beyond the palpable economic growth, the influx of foreign interest has fostered job creation in construction, property management, and allied sectors, while accelerating Cambodia’s development aspirations through dynamic projects.

• Analysis