Cambodia builds Paris in the heart of Phnom Penh.

Luxury real estate developments resembling Paris are springing up in the heart of Phnom Penh and are being sought after by Cambodia's wealthy.

A replica of the Arc de Triomphe stands beside a branch of the Mekong River, flanked by rows of shops and apartments in the distinctive Haussmann architectural style of the French capital.

"This building is truly beautiful," said Heng Sokharith, 49, who bought an apartment in the Elysee project, named after the Champs-Elysees avenue in Paris, to run his furniture business. "We are proud to have such a beautiful building in Cambodia."

Thierry Tea, vice president of OCIC Group, stands in front of the Elysee Shopping Centre in Koh Pich on March 1. Photo: AFP

With its winding riverside promenade, numerous cafes, and upscale shops, this area is likened to a miniature Paris, a luxurious haven for the wealthy, separating them from the constant hustle and bustle of the city of two million people.

OCIC, one of Cambodia's largest real estate conglomerates, has transformed a swampy area on an island into skyscrapers, an international school, and a hospital. They invested $400 million in Elysee, a project that began in 2015 and is nearing completion.

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 Asia's fastest-growing economies over the past 20 years.

Housing prices in Elysee reach $1,300 per square meter in a country with a GDP per capita of over $1,600 and a minimum wage of $200 per month in the garment industry, a labor-intensive sector. More than 80% of the 229 units have been sold, according to OCIC vice president Thiery Tea, although not all are occupied.

Phnom Penh is trying to attract foreign investors looking to buy real estate due to its competitive prices compared to other cities in the region.

"If clients want to buy, rent, make profits and return on investment, we welcome them," said Mr. Tea. "Cambodia has many interesting things to offer. Phnom Penh is developing and has great potential."

The Paris-style Elysee Shopping Centre along the Bassac River in Koh Pich, a satellite city of Phnom Penh, on March 1. Photo: AFP

Under Hun Sen's leadership, Cambodia has strengthened ties with China. A surge of Chinese investment has fueled a boom in the real estate sector in Phnom Penh.

Supporters of Elysee and similar high-end projects argue that, in addition to Chinese investor funding, they hope luxury brands will be attracted by Cambodia's market potential as its middle class grows.

Inside a shopping mall in Phnom Penh on February 29. Photo: 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 operating the mall, said Cambodia is "the new frontier for luxury brands".

He believes the biggest challenge now is "changing brand managers' perceptions of Cambodia and its image." The transfer of power from Hun Sen to his son, Hun Manet, 46, has boosted Cambodia's modern image.

Hun Manet, who studied in the US and the UK, embodies the renewal of the elite after his father ruled the country for nearly 40 years. He is committed to transforming Cambodia into a "high-income country" by 2050.

Heng Sokharith is pleased with his investment. "I believe the country will develop further in the future, so this area will become more attractive," he said.

Hong Hanh (According to AFP )

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