What are the best property investments in Cambodia?

Authored by the expert who managed and guided the team behind the Cambodia Property Pack

Everything you need to know before buying real estate is included in our Cambodia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cambodia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Cambodian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Phnom Penh, Siem Reap, and Sihanoukville. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties are available in Cambodia for investment?

Cambodia offers diverse property investment options including condominiums, villas, townhouses, shophouses, and land parcels across urban and suburban areas.

Condominiums dominate the market in Phnom Penh and Siem Reap, ranging from studio units to three-bedroom apartments in high-rise developments. Major projects in 2025 include Le Conde BKK1, J Tower 3, and Times Square developments.

Villas and townhouses are popular in suburban areas and gated communities called "borey," offering more space for families and higher rental yields. Shophouses provide mixed-use opportunities combining ground-floor commercial space with residential units above.

Land investment opportunities exist in urban expansion areas and development zones, though foreign ownership requires nominee structures or trust arrangements.

It's something we develop in our Cambodia property pack.

Is it better to buy or rent a property in Cambodia right now?

Buying is more favorable in 2025 due to government tax incentives and positive price forecasts for long-term investors.

The Cambodian government introduced stamp duty exemptions for properties up to $210,000 in 2025, significantly reducing transaction costs for buyers. Property prices are forecast to increase 5-10% annually through 2026, making purchase timing advantageous.

Rental yields for condos and villas range between 6% and 10% annually, providing strong income potential for property owners. Monthly rental costs for testing the market range from $300-400 for one-bedroom apartments to $500-800 for three-bedroom houses.

Renting suits those seeking flexibility or uncertainty about long-term plans, while buying benefits investors planning to stay multiple years or seeking appreciation gains.

What were the prices of properties in Cambodia a few years ago, what are they now, and what is the price forecast for the next few years?

Property prices in Phnom Penh doubled from 2012 to 2019, rising from $1,460 to $3,184 per square meter for condos, before cooling due to oversupply and COVID-19 impacts.

From 2021-2024, average condo prices dropped 2-8% annually in inflation-adjusted terms as the market corrected from previous overheating. High-end condos averaged $2,650 per square meter in 2025, down 2.2% from 2024.

The median property price across Cambodia's market reached approximately $203,500 as of September 2025, with prices stabilizing after the recent correction period.

Forecasts indicate 5-10% annual price increases through 2026, particularly for affordable and suburban properties, while luxury segments may remain flat due to ongoing oversupply conditions.

What are the current trends in the Cambodian real estate market?

The Cambodian property market shows a polarized trend with strong demand in affordable housing and suburban areas contrasting with oversupply in luxury segments.

Government incentives including stamp duty exemptions and capital gains tax deferrals create a favorable "window of opportunity" for property purchases in 2025. Non-Chinese foreign investment is increasing as the market diversifies its international buyer base.

Urban expansion continues into suburbs and satellite districts around major cities, driven by infrastructure improvements and affordability factors. Rental yields remain attractive at 6-8% nationwide despite price corrections.

Grade-A office space and luxury condominiums face oversupply challenges, while affordable housing segments experience strong absorption rates and price stability.

What is the step-by-step process for buying property in Cambodia?

The property purchase process in Cambodia involves seven key steps, starting with property selection and ending with ownership registration.

1. **Select property type:** Choose condominiums for easiest foreign ownership, as villas and land require more complex nominee or trust structures.2. **Conduct due diligence:** Verify developer credentials, project permits, and clear property title through legal professionals.3. **Complete legal checks:** Confirm foreign ownership eligibility (up to 70% of co-owned buildings above ground level for condos).4. **Negotiate and reserve:** Agree on price, sign reservation agreement, and place required deposit with the seller.5. **Draft contracts:** Prepare comprehensive sale and purchase agreement with legal review for terms and conditions.6. **Transfer ownership:** Complete final payment, execute deed, and register property at the local land office.7. **Pay applicable taxes:** Handle stamp duty (possibly exempt in 2025), registration fees, and other transaction costs.

What type of people typically invest in real estate in Cambodia?

Cambodia attracts a diverse mix of local and international property investors across multiple demographic segments.

Local Cambodians form the largest investor group, including returning diaspora seeking to reconnect with their homeland through property ownership. Foreign investors come primarily from China, Singapore, South Korea, Malaysia, Japan, and increasingly from Europe and North America.

Expatriates planning long-term residency in Cambodia represent a significant buyer segment, particularly for condominiums in Phnom Penh and Siem Reap. Institutional investors focus on commercial, industrial, and hospitality assets rather than residential properties.

Retirees and digital nomads are emerging buyer groups, attracted by affordable living costs and favorable exchange rates for foreign currencies.

What are some good reasons to invest in Cambodia, and what are some bad reasons?

Cambodia offers compelling investment advantages but also presents risks that require careful consideration.

**Good reasons to invest:**- High rental yields ranging from 6-10% annually across different property types- Affordable entry prices compared to regional markets like Thailand and Vietnam - Positive government policies including tax breaks and infrastructure upgrades in 2025- Growing population, tourism recovery, and continuing urbanization trends- Straightforward condo ownership process for foreign buyers**Bad reasons to invest:**- Speculative short-term flipping in oversupplied luxury segments carries high risk- Investing without understanding legal and regulatory complexities can lead to problems- Overleveraging in uncertain credit conditions threatens financial stability- Purchasing without proper due diligence on developers or property titles creates legal risks

Which properties are suitable for different budgets in Cambodia?

Property investment options in Cambodia cater to various budget levels with different expected returns and characteristics.

Budget Range	Suitable Property Types	Expected Rental Yield
Under $100,000	1BR condo, studio, shophouse	6-8%
$100,000-$250,000	2-3BR condo, small villa	6-9%
$300,000+	Large villa, prime shophouse	8-12%
Land investment	Development plots in Siem Reap	$110-165 per sqm
Commercial properties	Retail spaces, office buildings	Varies by location

What are the common mistakes to avoid when investing in Cambodian real estate?

Successful property investment in Cambodia requires avoiding several critical mistakes that can lead to financial losses.

- **Skipping due diligence:** Failing to verify developer credentials, project permits, and clear property titles can result in legal complications or financial loss.- **Ignoring foreign ownership restrictions:** Not understanding that foreigners cannot directly own land and must use nominee structures or trust arrangements for villas.- **Underestimating ongoing costs:** Failing to factor in maintenance fees, property management costs, and taxes that can significantly impact investment returns.- **Investing in oversupplied segments:** Purchasing luxury condominiums or Grade-A office space where excess supply keeps prices stagnant and rental yields low.- **Overextending budget:** Investing without adequate income safety net or emergency funds for unexpected market downturns or extended vacancy periods.

It's something we develop in our Cambodia property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cambodia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Which areas in Cambodia are the best for investment, considering affordability, upcoming developments, and upscale locations?

Investment location selection in Cambodia depends on balancing affordability, growth potential, and target market preferences.

Area	Pros	Cons	Best Investment Type
Phnom Penh	Active market, diverse stock, good yields, infrastructure	Oversupply in condos, competitive market	Expats, investors, renters
Siem Reap	Tourism growth, rising prices, high yields	Foreign land ownership restrictions	Resale, rental to tourists/expats
Sihanoukville	Coastal location, new infrastructure, tourism/casino	Market volatility, ownership limits	Upscale investment, tourism rental
Suburban areas	Affordable prices, infrastructure upgrades	Longer resale cycles, limited amenities	Families, budget-conscious investors

How do you rent out property long-term in Cambodia, and which areas are best for this?

Long-term rental success in Cambodia requires strategic location selection and understanding tenant expectations across different market segments.

The best areas for long-term rentals include Phnom Penh districts BKK1, Tonle Bassac, and Chroy Changvar, Siem Reap's Old Market and Wat Bo areas, Sihanoukville coastal zones, and emerging suburban developments with good transportation links.

Typical tenants include expatriates, international professionals, young Cambodian families, NGO workers, and increasingly affluent local residents seeking modern amenities. They expect furnished units, security features, reliable utilities, and flexible lease terms.

Rental yields average 6-8% in Phnom Penh, 6-10% in Siem Reap, and up to 12% for well-located shophouses in prime areas. Monthly rental income ranges from $300-800 for apartments and houses, with living costs averaging $850 monthly for single tenants.

How do short-term rentals work in Cambodia, what areas are best for this, and what regulations do you need to be aware of?

Short-term rentals in Cambodia operate primarily through international platforms but face varying local regulations that require careful compliance.

The best areas for short-term rentals include city centers near Angkor Wat in Siem Reap, BKK1 district in Phnom Penh, and coastal areas in Sihanoukville where tourist demand remains strong. Properties typically lease through Airbnb, Agoda, and local booking platforms with professional cleaning and management services.

Regulations vary significantly by locality, with some areas restricting Airbnb and short-stay rentals while others allow them freely. Foreign legal ownership is required for condominiums, while houses and land present more complex ownership structures.

Success requires understanding local licensing requirements, tax obligations, and building management rules that may prohibit or limit short-term rental activities.

What makes a property a good investment in Cambodia, and what makes it a bad investment?

Investment quality in Cambodia depends on location fundamentals, market demand alignment, and property characteristics that support long-term value creation.

Good investments feature prime locations with strong transportation links, clear property titles from reputable developers, and strong rental yield potential in the 6-10% range. Properties should match current market demand, focusing on affordable and suburban segments rather than oversupplied luxury markets.

Bad investments typically involve oversupplied market segments like luxury condominiums, properties with unclear ownership or title issues, developments in areas with weak rental demand, and properties requiring excessive maintenance or management costs.

High vacancy rates, poor build quality, and locations without growth catalysts like infrastructure improvements or economic development plans indicate poor investment potential.

It's something we develop in our Cambodia property pack.

Are there better investment opportunities in similar places compared to Cambodia?

Cambodia remains competitive regionally for entry prices and yields, but alternative markets offer different risk-return profiles worth considering.

Vietnam, Thailand, and Malaysia provide higher market liquidity and more regulated investment environments for risk-averse investors, though often at higher entry price points. These markets typically offer better resale liquidity and more established property management infrastructure.

Cambodia's advantages include lower entry costs, government incentives introduced in 2025, and ownership reforms that improve foreign investor access. The country appeals particularly to value-focused and growth-oriented investors willing to accept higher regulatory complexity.

Regional comparison shows Cambodia offers attractive yields and appreciation potential, but investors should weigh these benefits against potentially higher transaction costs, less liquid resale markets, and more complex legal requirements compared to neighboring countries.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Real Estate Cambodia - Investment Guide 2025
2. BambooRoutes - Siem Reap Property Analysis
3. BambooRoutes - Phnom Penh Price Forecasts
4. Dabest Properties - Cambodia Tax Incentives 2025
5. Global Property Guide - Cambodia Price History
6. CBRE Cambodia - Real Estate Law Guide 2025
7. Cambodia Investment Review - DFDL Investment Guide
8. InvestAsian - Cambodia Property Investment Guide