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
What will happen in Cambodia’s real estate market? Will prices go up or down? Is Phnom Penh still a hotspot for foreign investors? How is Cambodia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who buy properties in Cambodia, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
1) Chinese investors will keep leading the foreign buyer market in Cambodia
Chinese investors are leading the charge in Cambodia's property market, and this trend shows no signs of slowing down.
In 2023, Chinese investments in Cambodia hit $3.24 billion, making up a whopping two-thirds of all foreign investments. This isn't just a number; it's a clear sign of China's stronghold in Cambodia's economy.
Fast forward to 2024, and Chinese investors were responsible for nearly 40% of the $1.3 billion investment inflows into Cambodia in just the first two months. This steady flow of money highlights the deep economic ties between the two countries. Plus, with 769,775 Chinese tourists visiting Cambodia in the first 11 months of 2024, interest in the Cambodian market is only growing.
Looking to 2025, Cambodia's e-commerce revenues are expected to grow to $1.78 billion, which is likely to draw even more Chinese investors. The completion of major infrastructure projects and the China-Cambodia Free Trade Agreement are set to make Cambodia even more attractive as an investment hub.
These developments, along with favorable government policies and strong business partnerships, create a welcoming environment for continued Chinese investment. It's not just about the numbers; it's about the strategic moves that make Cambodia a hotspot for Chinese investors.
Sources: Phnom Penh Post, Belt and Road Portal, China Daily HK
2) Rent prices in rural areas will stay steady as more people move to cities
In Cambodia, urban living is becoming increasingly popular as more people move to cities.
One big reason for this shift is the improved infrastructure in urban areas. Thanks to support from the Asian Infrastructure Investment Bank, cities now offer better water supply and sanitation, making them more appealing places to live. This development is drawing people away from rural areas, where such amenities are less available.
Young people are particularly drawn to cities because of the better job opportunities and lifestyle options they offer. Urban centers are buzzing with industries and services, which naturally attract those looking for work and a vibrant lifestyle. This trend is leaving rural areas with fewer new residents.
In 2023, the rural population in Cambodia grew by just 0.44%, a stark contrast to the urban growth rate. This slow growth in rural areas indicates that the demand for rural rentals is likely to remain stable or even decrease, as fewer people are moving there.
With more people choosing city life, rural rent prices are expected to stay stable. The focus on urban development means that rural areas aren't seeing the same level of investment or population growth, which keeps rental demand steady.
For those considering buying property in the countryside, this trend suggests that rural areas will maintain stable rent prices as urban living continues to attract more people. This could be a good opportunity for investment, as the demand for rural rentals isn't likely to spike anytime soon.
Sources: Trading Economics, AIIB, Macrotrends, World Bank, Trading Economics
We have made this infographic to give you a quick and clear snapshot of the property market in Cambodia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Rents in secondary cities will increase as they attract more young professionals and families
Secondary cities in Cambodia are becoming a hot spot for young professionals and families, leading to a noticeable rise in rents.
One reason for this trend is the steady urban population growth of 2.8494% in 2023, which means more people are moving to these areas and increasing the demand for housing. As a result, rents are naturally going up.
Infrastructure development is another big draw. The Asian Development Bank has invested $180 million to boost urban infrastructure in cities like Poipet and Bavet. This investment has enhanced the economic competitiveness and livability of these cities, making them more attractive to both residents and businesses.
Transportation links have also improved, making it easier to commute between secondary cities and major urban centers. This convenience is a major pull for young professionals and families who want affordable living with easy access to urban amenities. As more people flock to these well-connected areas, the competition for rental properties heats up, pushing rents higher.
These cities offer a unique blend of affordability and opportunity, which is why they are becoming increasingly popular. The improved infrastructure and transportation options are not just conveniences; they are key factors driving the demand for housing in these areas.
As secondary cities continue to develop, they are becoming more than just alternatives to major urban centers. They are emerging as vibrant communities in their own right, attracting a diverse range of residents who contribute to their growth and dynamism.
Sources: Trading Economics, Asian Development Bank, CBRE Cambodia
4) Stricter regulations will limit foreign buyers' ability to purchase homes
In Cambodia, foreigners face significant hurdles when trying to buy property.
The Cambodian Constitution and the 2001 Land Law have always been clear: foreigners can't directly own land. Even with the 2010 Foreign Ownership Property Law, which lets foreigners own up to 70% of a building, they still can't touch the ground floor or the land itself. This means if you're eyeing a cozy ground-floor apartment, it's off-limits.
Some foreigners have tried to get creative with nominee arrangements or trusts to bypass these rules. However, these methods are fraught with legal risks and complexities. Sub-Decree 111 has tightened the screws even more, making it tougher for foreigners to use Cambodian nominees to control property indirectly.
While the Cambodian government seems keen on attracting foreign real estate investment, they stress the importance of sticking to local laws and respecting the Constitution. So, even if there's a warm welcome for your investment, the core restrictions on ownership aren't budging.
For those considering a property purchase, it's crucial to understand that the landscape is not foreigner-friendly. The government is clear about its priorities: compliance and constitutional respect over foreign ownership.
In essence, while Cambodia might seem like a promising market, foreign buyers will face stricter regulations, impacting their ability to purchase residential properties.
Sources: BNG Legal, RFA, B2B Cambodia
6) Luxury home prices in Cambodia will adjust downward as supply exceeds demand
The luxury residential market in Cambodia is experiencing a surge in available units.
In Phnom Penh, the number of luxury residential units was over 30,000 in 2024, with plans to expand to 80,000 by 2025. This rapid increase in supply is expected to outpace demand, potentially leading to a price correction.
Reports from 2024 show a growing number of unsold luxury properties in key areas like Phnom Penh, indicating that the current supply is already exceeding demand. Experts, such as IPS Executive Director Malay Nop, suggest that while there might not be an oversupply, the imbalance between supply and demand could still result in a price correction.
Occupancy rates for high-end residential developments have been on the decline, dropping from 63% in 2023 to 58% in 2024. This trend shows that luxury properties are not being absorbed quickly enough, adding to the potential for a price correction.
For those considering buying property in Cambodia, it's crucial to understand that the market dynamics are shifting. The luxury segment is particularly affected, with more units available than there are buyers.
Sources: Real Estate Cambodia, B2B Cambodia, IPS Cambodia
7) Stricter building codes in Cambodia will enhance safety and sustainability in housing developments
The Cambodian government is tightening building codes to boost safety and sustainability in housing projects.
Past incidents, like the tragic 2019 building collapse in Sihanoukville that claimed 18 lives, have highlighted the urgent need for better safety standards. This has pushed the government to act decisively to prevent such tragedies from happening again.
The Ministry of Land Management, Urban Planning and Construction is drafting a new Construction Law, which includes a comprehensive Building Code. This aims to set higher safety and quality benchmarks for construction projects across the country.
To ensure these standards are robust, the Ministry is working with international bodies, including the European Union through the E-READI program. They're looking to adopt the EuroCode standard, known for its practical yet strong building guidelines.
Organizations like EuroCham are also pushing for a Building Code that meets international standards. This is crucial for maintaining investor confidence and reducing safety risks in the construction industry.
With Cambodia facing more natural disasters and climate challenges, there's a growing need for resilient construction practices to protect both people and investments.
Sources: Business & Human Rights Resource Centre, EuroCham Advocacy Compass, GlobeNewswire
8) Affordable housing prices will stay steady as government programs help low-income buyers
The Cambodian government is actively working to keep affordable housing prices stable for low-income homebuyers.
One major move is the extension of property transfer tax exemptions for homes under $70,000 until the end of 2025. This makes it easier for moderate-income citizens to buy homes, which in turn supports the real estate market. In Phnom Penh, projects like the Arakawa condominium in Sen Sok district are part of this effort, with nearly 2,000 units already completed.
These projects are not just isolated efforts. The Grand Park Housing Project is another example of how the government is working with private developers to increase the number of low-income housing units. This collaboration is crucial for providing affordable options to those who need them most.
First-time homebuyers also benefit from property tax exemptions on homes valued between $70,000 and $210,000. This initiative reduces financial stress and encourages developers to focus on affordable housing. The government’s partnerships with private developers are key to maintaining stable housing prices.
These initiatives are part of a broader strategy to ensure that affordable housing remains accessible. By reducing taxes and encouraging development, the government is making it easier for citizens to own homes without breaking the bank.
Sources: Phnom Penh Post, Urbanet
We made this infographic to show you how property prices in Cambodia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Urban property demand will rise as more people move from rural areas
In Cambodia, the urban population has more than doubled from 3.1 million in 2013 to over 6.1 million by 2019.
People are flocking to cities mainly because of better job opportunities. The real estate market is booming, thanks to a rising middle class and a love for city life. This has sparked a surge in demand for homes and offices, making urban areas a magnet for those chasing careers and modern comforts.
The Cambodian government is also playing a big role by pushing urban development. They're rolling out policies to lure foreign investors and boost the economy. This has led to more infrastructure projects in cities, making them even more appealing to folks from the countryside who are after a better lifestyle.
Looking ahead, the real estate market is set to keep growing, with a projected increase of 2.88% from 2024 to 2029. This means the hunger for city housing isn't going away anytime soon, and rural-to-urban migration will keep shaping the demand for homes in urban areas.
Sources: CEIC Data, CEIC Data, Statista
10) Demand for home office spaces will grow as remote work becomes more popular
The rise of remote work has been a game-changer since the COVID-19 pandemic.
By 2023, 83% of organizations expected some employees to work fully remotely, and this trend is catching on in Cambodia too. As more people set up shop at home, there's a growing buzz around having a dedicated office space in your house. In Cambodia, the real estate market is seeing a noticeable uptick in homes with these features.
Properties are now being advertised with home offices, directly appealing to remote workers. This shift is not just a local phenomenon; it's part of a global trend. 82% of remote workers worldwide prefer working from home, which is driving the demand for home office spaces.
In Cambodia, this preference is mirrored in the real estate listings, where home office features are becoming a hot selling point. It's not just about having a roof over your head anymore; it's about having a space where you can work comfortably and efficiently.
For those looking to buy property in Cambodia, it's worth noting that homes with office spaces are increasingly in demand. This trend is reshaping what buyers are looking for, making home offices a desirable feature.
Sources: HR.com, Realestate.com.kh, Pumble
11) Demand for retirement-friendly housing will grow as the population ages
Life expectancy in Cambodia is rising, leading to an aging population that is reshaping housing needs.
By 2050, the number of people aged 60 and above in Cambodia is expected to nearly double, according to the Asian Development Policy Report from 2024. This shift means more homes will need to cater to older residents, with features like single-story layouts and easy access to healthcare facilities.
The Cambodian government is aware of this trend and is taking steps to address it. They've recognized the need for social security and housing solutions tailored for the elderly. This includes developing communities that offer both comfort and convenience for older adults.
Insider knowledge suggests that areas close to urban centers are seeing a rise in retirement-friendly developments. These locations offer a mix of tranquility and access to essential services, making them attractive to retirees.
Reports emphasize the urgency of these interventions. The focus is on creating environments where older people can live independently yet have support when needed. This approach not only benefits the elderly but also boosts the real estate market by diversifying housing options.
For potential buyers, investing in properties that cater to this demographic could be a smart move. As the demand for such housing grows, these properties are likely to appreciate in value, offering both a home and a wise investment.
Sources: Asian Development Policy Report 2024, HelpAge Report
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12) Demand for city homes in Cambodia will rise as the urban population grows
The urban population in Cambodia is set to keep growing, driven by several key factors.
People are moving from rural areas to cities, seeking better economic opportunities. This shift has been a major force behind urban growth and shows no signs of slowing down. The Cambodian government is also playing a big role by investing in infrastructure like new airports, bridges, and ring roads, which boosts urban connectivity and makes city life more appealing.
Foreign investors are increasingly interested in Cambodian cities, especially in real estate and infrastructure, which further fuels urban expansion. This influx of investment is transforming urban landscapes, making them more vibrant and attractive. Economic growth in these urban centers is another big draw. With Cambodia's GDP expected to grow by around 5.8% in 2024, cities are buzzing with economic activity, creating more jobs and opportunities.
This economic boom is particularly enticing for younger people, who are flocking to cities in search of work and a better lifestyle. As a result, the demand for residential properties is on the rise. The combination of government initiatives, foreign investment, and economic growth is creating a perfect storm for urban expansion.
For anyone considering buying property in Cambodia, these trends suggest a promising future for urban real estate. The ongoing development and investment in cities are likely to continue attracting more residents, driving up demand for housing. This makes urban areas a potentially lucrative market for property buyers.
Sources: CEIC Data, B2B Cambodia, Trading Economics
13) Residential developments will increase along the Mekong River due to scenic views and better flood management
The Mekong River's banks are becoming prime spots for new homes thanks to their beautiful views and better flood control.
In recent years, there's been a big push to improve flood management, with the Asian Development Bank stepping in with a $35 million loan to Cambodia to boost irrigation and flood defenses. This has made predicting floods much easier, which is a huge plus for potential homeowners.
Hydropower projects in the Mekong River basin have cut down flood areas by over 20%, making the riverbanks safer and more appealing for housing. The new Mekong River bridge in Kratie province is a sign that these areas are gearing up for more residential and commercial growth.
Government efforts are also key in making the Mekong River a hot spot for sustainable urban living. The ADB's project is all about building a stronger risk management system from the national level to local communities, which boosts safety and makes the area even more attractive for new homes.
These initiatives are not just about safety; they’re about creating a vibrant community along the river. The Greater Mekong Subregion project is a big part of this, aiming to enhance regional defenses and make the area a desirable place to live.
Sources: Asian Development Bank, Natural Hazards and Earth System Sciences, Xinhua News
14) Interest in residential properties in the Tonle Sap region will drop due to environmental worries and flood risks
The Tonle Sap region is grappling with serious environmental challenges due to changing flooding patterns.
In places like Kompong Cham, the flooding season has shortened by about 26 days, while Chaktomuk has seen a reduction of about 40 days. This shift is a clear sign of the environmental changes impacting the area. Locals have noticed these changes, which are affecting their daily lives and the region's natural rhythm.
Experts using models like the Soil and Water Assessment Tool (SWAT) predict that river flows in the Tonle Sap Lake basin could decrease by up to 41% in the coming decades. This means not only fewer floods but also more droughts, which could disrupt the region's delicate ecological balance and water supply. Such changes are making residents and potential property buyers wary of the future.
The environmental degradation in the Tonle Sap region is alarming, with nearly one-third of its natural habitats disappearing over the last 20 years. This loss is largely due to the conversion of floodplains into rice fields, which has also led to a decline in fish populations. These changes are causing concern among those considering buying property in the area, as they worry about sustainability and quality of life.
Potential buyers are increasingly cautious, as the conversion of half the floodplain to agriculture has not only affected biodiversity but also raised questions about the long-term viability of living in the region. The once-abundant fish species are now threatened, adding to the environmental woes.
Sources: HESS Copernicus, ASEAN Energy, WCS Newsroom
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cambodia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
16) Battambang will become a residential investment hotspot as infrastructure and connectivity improve
Battambang is rapidly transforming into a prime spot for residential investment, thanks to major infrastructure upgrades.
By 2024, the city had completed over 80% of its infrastructure projects, focusing on areas like drainage and road construction around the Stueng Sangke River. These upgrades are not just about aesthetics; they are crucial for urban development, making Battambang a more attractive place to live and invest.
The road network in Battambang has seen significant expansion, with seven national roads and 40 main provincial roads being improved. This enhanced connectivity makes it easier for residents and investors to navigate the region, adding to the city's appeal.
Adding to its allure, Battambang is part of a smart-city development initiative. The provincial administration is focused on infrastructure improvements, such as road construction and drainage system rehabilitation, which align with the smart city concept. This initiative is expected to draw substantial interest from developers and residents.
These infrastructure projects are not just about convenience; they are setting the stage for Battambang to become a new residential investment hub. The improved connectivity and smart-city initiatives are making the city a hotspot for potential investors.
With these developments, Battambang is poised to emerge as a key player in the residential investment market, offering a blend of modern infrastructure and strategic location.
Sources: Construction Property, The Phnom Penh Post
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.