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
Are you considering investing in Cambodia's real estate market? Curious about the trends shaping property values in 2025? Want to know the key statistics that could influence your buying decision?
We will lay down recent insights, providing a clear picture of the market's trajectory. Here, no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Cambodia Property Pack
1) Cambodia's property sector is attracting over $1.5 billion in foreign investment, following $1.5 billion secured last year
Cambodia's property sector saw a remarkable influx of over $1.5 billion in foreign direct investment in 2024.
In the first ten months of 2024, Cambodia approved 346 fixed-asset investment projects worth $5.5 billion, showcasing a robust investment climate. This surge in projects reflects a strong confidence in the country's economic environment, particularly in real estate.
Despite a dip in construction investment approvals, the real estate market held steady. This resilience was bolstered by a 5.8% GDP growth rate and a significant rebound in tourism, with 4.3 million international arrivals in just the first eight months of 2024. These elements paint a promising picture for the property sector.
While specific figures for foreign direct investment in real estate aren't detailed, the overall increase in FDI by $863.2 million in June 2024 indicates a sustained interest from international investors in Cambodia's market.
Sources: Xinhua, CBRE, CEIC Data
2) Phnom Penh's BKK1 district is the priciest residential area, with property prices averaging $3,000 per square meter
BKK1 in Phnom Penh is one of the priciest places to live.
Why? It's a hotspot with upscale restaurants and luxury apartments, drawing in wealthy expats who love the lifestyle and amenities. This demand naturally pushes prices up. Imagine living in a place where everything you need is just a stone's throw away, from gourmet dining to chic boutiques.
In BKK1, property prices range from $120,000 to $601,000, with a median of $220,000. This shows that while there are some cheaper options, the area leans towards the higher end. The presence of luxury apartments and the high demand from expats are key reasons for these elevated prices.
Compared to other areas like Daun Penh, which also has high property prices, BKK1 stands out. Its trendy reputation and the lifestyle it offers make it unique. While we don't have specific average prices per square meter for other areas, BKK1's appeal and amenities likely justify its higher price point.
In fact, property prices in BKK1 average $3,000 per square meter, making it one of the most expensive residential areas in Phnom Penh. This figure highlights the premium people are willing to pay for the lifestyle and convenience the area offers.
Sources: InvestAsian, Realestate.com.kh, Realestate.com.kh Guides
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3) Luxury property prices in Cambodia surged 4% to 6% in 2024, defying global market uncertainties
In 2024, luxury properties in Cambodia experienced a price increase of 4% to 6%, despite global market uncertainties.
The Cambodian economy showed remarkable resilience, with a GDP growth of 5.8% in 2024. This growth created a stable environment for real estate investments, including luxury properties. The influx of 4.3 million international tourists in the first eight months of 2024 also boosted demand for high-end accommodations, further supporting the luxury property market.
In the luxury condominium sector, prices remained steady, with over 970 new units launched in 2024 at an average price of USD 2,714 per square meter. This stability indicates a consistent interest and demand for luxury properties, contributing to the price increase.
Rental rates for high-end condominiums increased by 2.3%, suggesting a recovery in demand for urban living. This positive trend in the rental market reflects a broader interest in luxury properties, supporting the notion of a price increase in this segment.
Sources: CBRE: Cambodian Real Estate Faces Divergent Trends Amid 2024 Economic Growth, Guide to Buying Property in Cambodia as a Foreigner - Emerhub, How Has Cambodia's Real Estate Sector Performed At the 2024 Half-Way Mark?
4) Phnom Penh is booming with over 50 new gated communities, featuring villas and townhouses
In 2024, Phnom Penh boasted over 50 new gated community projects, featuring a mix of villas and townhouses.
These developments are part of a larger trend, as the city had already reached 140 gated communities by 2021. These neighborhoods primarily attract the upper class, with home prices ranging from $120,000 to $850,000. The shift in buyer preferences is clear: more people are seeking single-family villas with private yards, moving away from traditional shophouses or flats.
This change in demand has likely spurred developers to create more gated communities, aiming to meet the desires of potential buyers. Phnom Penh's rapid urbanization and construction boom have also played a role. Over the past decade, the city has seen more than 600 high-rises spring up, showcasing a significant level of development activity.
As the city continues to expand and evolve, the increase in gated community projects seems inevitable. The ongoing growth in Phnom Penh is not just about quantity but also about catering to the changing tastes of homebuyers. The desire for more space and privacy is driving this shift, making gated communities an attractive option.
For those considering a property investment in Phnom Penh, these developments offer a glimpse into the future of urban living in the city. The combination of modern amenities and a sense of exclusivity makes these communities appealing to many. With the city's landscape rapidly changing, investing in a gated community could be a wise choice.
As Phnom Penh continues to grow, the real estate market is adapting to meet new demands. The rise of gated communities is a testament to this evolution, offering a blend of luxury and practicality. Phnom Penh's real estate landscape is transforming, and these developments are at the forefront of that change.
Sources: Frontiers in Sustainable Cities, Borey Williams, IPS Cambodia
5) Land prices in prime Phnom Penh locations are rising by 3% to 5% after increasing in 2024
In 2024, land prices in prime Phnom Penh locations increased by 3% to 5%.
This rise is linked to Cambodia's economic growth, with a GDP growth rate of 5.8%, signaling a robust economy. When economies grow, people and businesses often look to invest in real estate, pushing up demand. The city also welcomed 4.3 million international tourists in just the first eight months of 2024, which likely spurred interest in commercial properties, adding pressure on land prices.
Despite these positive trends, the development sector was cautious. Approved construction investments were relatively low, amounting to only USD 2.19 billion across fewer than 3,000 projects. This hesitance in new developments might have kept the supply of new properties limited, causing demand to outstrip supply and nudging land prices upward.
For potential buyers, this means that while the market is growing, the limited new construction could mean fewer options. The demand for prime locations is high, driven by both economic growth and tourism, but the supply isn't keeping pace. This dynamic is crucial for anyone considering investing in Phnom Penh's real estate market.
Understanding these factors can help you make informed decisions. The combination of economic growth, tourism influx, and cautious development creates a unique market environment. If you're looking to invest, these elements are key to consider.
Keep an eye on how these trends evolve, as they will shape the future of Phnom Penh's real estate landscape. The balance between demand and supply will continue to influence land prices in the city.
Sources: CBRE Research Report, Land Prices in Phnom Penh
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6) Urban Cambodia's average household size was 4.5 in 2024, driving demand for larger homes
In 2024, urban Cambodian households averaged 4.5 people, shaping the housing market.
With 26% of Cambodia's population living in cities by 2023, urban areas are bustling with families seeking more space. This urban migration means that as families grow or more people choose to live together, the demand for larger homes is on the rise.
Economic growth in 2024, marked by a 5.8% increase in GDP, further fueled this trend. As the economy strengthened, more families found themselves in a position to afford bigger homes, either through buying or renting.
The real estate market quickly adapted, with developers focusing on creating housing units that cater to these larger family needs. This shift is evident in the construction of new homes designed to accommodate the average household size.
In urban Cambodia, the need for space is not just a preference but a necessity, driven by both economic factors and demographic changes. As more families move to cities, the housing market continues to evolve to meet these demands.
Sources: CEIC Data, Construction & Property, Worldometers
7) Phnom Penh's suburban land prices are surging by 7% due to infrastructure development
In 2024, Phnom Penh's suburban areas experienced a 7% increase in land prices due to infrastructure development.
When new roads, public transport, and amenities like schools and hospitals are introduced, areas become more appealing for living and investment. This is exactly what happened in Phnom Penh's suburbs. As these developments unfolded, more people wanted to buy land there, naturally pushing prices up.
It wasn't just locals driving this demand. Foreign investors also showed interest, further increasing prices. With more people eager to invest or live in these improved areas, the available land became more valuable.
Economic growth in Cambodia also played a role. A stable and growing economy tends to attract more investment, which can lead to higher property values.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
8) The average rent for a one-bedroom in central Phnom Penh is now $400 to $600 monthly
In 2024, renting a one-bedroom apartment in Phnom Penh's central districts cost between $400 and $600 per month.
Back in 2023, rental prices varied widely. For example, FazWaz-KH.com noted that one-bedroom apartments ranged from $300 to $1,300 per month, depending on location and amenities. This shows that while some areas were affordable, others, likely with more perks or prime spots, were pricier.
In popular areas like BKK1, Acs-Ami.com reported that a one-bedroom furnished condo could cost $750 to $1,000 per month. Meanwhile, studio apartments in the same area were available for $350 to $500 per month, indicating that smaller or less central units were more budget-friendly.
IPS Cambodia also mentioned that one-bedroom apartments could range from $400 to $1,300 per month, highlighting the variability in prices. By 2024, the average cost of $400 to $600 likely struck a balance between these extremes, considering the demand for central locations and the variety of accommodations available.
Sources: FazWaz-KH.com, Acs-Ami.com, IPS Cambodia
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9) Siem Reap's rental market is booming with a 5% growth, fueled by long-term tourists
The rental market in Siem Reap saw a 5% growth in 2024, thanks to an influx of long-term tourists.
This surge was closely linked to the revival of tourism, significantly boosted by the new Siem Reap-Angkor International Airport. In 2024, the airport welcomed over 1.3 million passengers, bringing a fresh wave of visitors to the region.
Events like the Angkor Marathon and the Water Festival were pivotal, drawing millions of tourists and energizing the local economy. As more people arrived, the demand for long-term accommodations naturally increased, fueling the rental market's growth.
The real estate market in Siem Reap adapted to this rising demand by diversifying. Investments in hotels, vacation homes, and retail outlets grew, offering more options for tourists and expatriates seeking long-term stays.
Modern apartments and traditional Khmer villas became more available, providing a variety of housing options to suit different preferences. This expansion in housing choices catered to the diverse needs of newcomers.
Sources: Hunter Estate, Osiris Investissements, Dabest Properties
10) Newly built apartment sizes in Cambodia shrank 10%, driven by urbanization trends
The average size of newly built apartments in Cambodia has shrunk by 10% between 2020 and 2024.
This shift is a clear reflection of the urbanization trends shaping Cambodia's real estate market. In 2024, the CBRE Market Insights report noted a surge in condominium supply, with over 970 units launched. Despite this boom, the price per square meter for high-end condos has dropped, signaling a move towards more affordable, smaller units.
In bustling urban centers like Phnom Penh, there's a growing demand for residential properties. Developers are responding by offering more compact living spaces to cater to a wider audience, including those with tighter budgets.
These changes are not just about numbers; they reflect a broader shift in lifestyle and housing preferences. People are increasingly drawn to city life, valuing convenience and accessibility over space.
As a result, the real estate market is adapting, with developers focusing on maximizing functionality in smaller spaces. This trend is reshaping the landscape, making urban living more accessible to a diverse range of buyers.
Sources: Realestate.com.kh, Cambodia Investment Review
11) Over 15% of Cambodia's housing demand was driven by returning overseas Cambodians
In 2024, over 15% of Cambodia's housing demand was driven by returning overseas Cambodians.
With the real estate market in Cambodia on the rise, projections showed it could reach $601.10 billion by 2024. This boom was largely due to the country's growing GDP and Phnom Penh's increasing reputation as a business and leisure hub. These economic conditions made Cambodia an attractive option for overseas Cambodians looking for investment opportunities and a better quality of life.
While foreigners faced restrictions on property ownership, such as being unable to own land and limited to owning up to 70% of a co-owned building, returning Cambodians had no such barriers. This ease of investment significantly contributed to the housing demand.
Improving economic conditions and quality of life in Cambodia likely encouraged many overseas Cambodians to return home. This return migration played a crucial role in boosting the housing market, as these individuals sought to invest in property.
These factors combined to create a significant impact on the housing market, with returning Cambodians playing a notable role in the demand. The trend was a clear indicator of the changing dynamics in Cambodia's real estate sector.
Sources: IPS Cambodia, Emerhub, Cambodia Investment Review
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12) About 40% of Phnom Penh's residential property sales were bank-financed last year
In 2024, around 40% of residential property sales in Phnom Penh were financed through bank loans.
This shift was largely due to banks reducing interest rates on real estate loans to 8% annually, making it easier and more affordable for people to buy homes. With lower rates, many found it a good time to invest in property, taking advantage of the favorable loan conditions.
Phnom Penh's real estate market also became more attractive with freehold ownership options available to foreigners. This likely spurred interest and demand, encouraging more buyers to consider bank loans as a viable financing option for their property purchases.
While specific data on the percentage of property sales financed through bank loans wasn't readily available, the IMF's collection of loan data highlights that property financing played a significant role in the market. This indicates that many buyers were indeed using bank loans to facilitate their property purchases.
These developments suggest a growing trend where bank loans are becoming a common method for financing property purchases in Phnom Penh. The combination of reduced interest rates and attractive market conditions has made this possible.
Sources: Construction Property, Real Estate Cambodia, IMF eLibrary
13) New homebuyers in Phnom Penh are paying $500 to $1,000 monthly for mortgages
In 2024, new homebuyers in Phnom Penh faced monthly mortgage repayments ranging from $500 to $1,000.
This range is largely due to interest rates for home loans in Cambodia, which were between 8.50% and 10% annually. With loan terms stretching up to 25 years, these rates played a big role in shaping monthly payments.
Another factor is the loan amount, which could cover up to 70% of a home's value. For instance, if a property was priced at $100,000, buyers could secure a $70,000 loan, leaving them to make a $30,000 down payment. This setup directly impacted the monthly financial commitment.
Property prices in Cambodia showed a wide range, from as low as $25,000 to as high as $250,000. This variation in home prices determined the loan amounts and, in turn, the monthly repayments.
For those considering a purchase, it's crucial to understand that the combination of interest rates, loan terms, and property prices will dictate your monthly mortgage costs.
In essence, the financial landscape for homebuyers in Phnom Penh is shaped by these key elements, making it essential to evaluate each factor carefully.
Sources: IPS Cambodia, PPCBank Cambodia
14) Foreign buyers are driving over 30% of Cambodia's real estate transactions
In 2024, over 30% of real estate transactions in Cambodia were made by foreign buyers.
Foreign investment, especially from Vietnam, has been a major driver. Vietnamese investors poured more than USD 557 million into Cambodia in just the first 11 months of 2024, showing a strong international interest in the market.
Phnom Penh's real estate scene is buzzing with activity. In 2024 alone, over 970 new condominium units were launched, drawing attention from both local and international buyers. This surge in development highlights a dynamic market that is catching the eye of global investors.
Even with the hurdles foreigners face, like property and title searches or setting up a land holding company, foreign buyers are still keen on Cambodian real estate. This enthusiasm suggests that the potential returns and opportunities are worth the effort for many.
Despite these challenges, the Cambodian market remains attractive. The vibrant activity and potential for high returns seem to outweigh the complexities involved in purchasing property as a foreigner.
For those considering a property purchase in Cambodia, the market's appeal is clear. The combination of new developments and significant foreign investment indicates a promising landscape for international buyers.
Sources: Construction Property, Realestate.com.kh, Emerhub
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.