National airline relaunch set to ignite Cambodian property prices

Cambodia scrapped it’s national airline in 2000 after it suffered heavy losses. However, as part of a push to attract more tourists to the country, the service is being re-launched.

Visitors to Cambodia are increasing steadily, with around 2 million visiting in 2006. 2007 saw a 20% increase in these figures, and the same sort of increase is expected for 2009. Three quarters of these tourists arrive in the country by plane, therefore it is hoped that by re-launching the national carrier, the tourism market will see a big boost.

Any increase in the local tourism market will normally have a positive effect on property investment – both in terms of capital growth and rental income. With countries near Cambodia such as Malaysia and Thailand experiencing a strong property market, it is expected that the property market in Cambodia will be strong in the next few years.

Currently, the majority of property market growth in Cambodia has been limited to Phnom Penh thanks to much business in the area. With increased tourism, this property growth should spread to other areas and it is believed that new Cambodian property hotspots will soon appear.

So, if you looking for a country to invest in which has strong property potential and you are willing to take a bit of a gamble, Cambodia could be the area to start your search.

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