The high-end Paris-like real estate area rising in the middle of the capital Phnom Penh is being sought after by rich Cambodians.
The replica of the Arc de Triomphe is located on a branch of the Mekong River, on both sides are rows of shops and apartments in the typical Haussmann architecture of the French capital.
“This building is really beautiful,” said Heng Sokharith, 49, who bought an apartment in the Elysee project named after the Champs-Elysees avenue in Paris to sell furniture. "We are proud to have such a beautiful building in Cambodia."
Thierry Tea, vice president of OCIC group, in front of the Elysee Shopping Center building in Koh Pich on March 1. Image: AFP
With a winding walkway along the riverbank, many cafes and luxury shops, this area is likened to a miniature Paris, a luxurious place for the rich, separating them from the hustle and bustle of the world. stop of the city of two million people.
OCIC, one of Cambodia's largest real estate groups, has transformed wetlands on an island into skyscrapers, an international school and a hospital. They invested 400 million USD in Elysee, a project that started in 2015 and is about to be completed.
Koh Pich, the island where the Elysee project is located, has become a symbol of Phnom Penh's rebirth after decades of conflict. Cambodia has been one of the fastest growing economies in Asia over the past 20 years.
House prices in Elysee are up to 1.300 USD per square meter in a country with a GDP per capita of more than 2 USD and a minimum wage in the garment industry, a field that attracts many workers, of 1.600 USD/month. More than 200% of the 80 units have been sold, according to OCIC vice president Thiery Tea, although not all homes are occupied.
Phnom Penh is trying to attract foreign investors looking to buy real estate thanks to its competitive prices compared to other cities in the region.
“If customers want to buy, rent, make profits and return on investment, we welcome it,” Mr. Tea said. “Cambodia has many interesting things. Phnom Penh is developing, has great potential."
The Parisian-style Elysee Shopping Center along the Bassac River in Koh Pich, a satellite city in Phnom Penh, on March 1. Image: AFP
Under Mr. Hun Sen, Cambodia has tightened relations with China. Money flowed into the country from China, driving the real estate industry in Phnom Penh to boom.
Backers of Elysee and similar high-end projects say that in addition to Chinese investor money, they hope luxury brands will be attracted by Cambodia's market potential as the middle class is growing. .
Inside a shopping center in Phnom Penh on February 29. Image: AFP
Not far from Koh Pich, a shopping mall with 75 luxury stores will open in the next few months. Pierre Balsan, CEO of Bluebell, the company that operates the mall, said Cambodia is "the new frontier for luxury brands".
He believes that the biggest challenge now is "changing brand managers' perception of Cambodia and Cambodia's image". The transfer of power to a younger generation from Mr. Hun Sen to his son, Mr. Hun Manet, 46, has boosted Cambodia's modern image.
Mr. Hun Manet, who studied abroad in the US and UK, embodies the innovation of the elite after his father ran the country for nearly 40 years. He pledged to turn Cambodia into a "high-income country" by 2050.
Heng Sokharith is satisfied with his investment. "I think the country will be more developed in the future, so this area will be more attractive," he said.
Hong Hanh (Follow AFP)
