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Are you considering investing in Cambodia's real estate market? Curious about which areas are set to boom by 2025? Want to know where your investment will yield the highest returns?
We will lay down recent insights, focusing on the 12 hottest real estate areas in Cambodia. 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) Pailin attracts investors with its proximity to Thailand and potential for cross-border commerce
Pailin is becoming a hotspot for investors due to its strategic location near Thailand.
In 2023, trade between Cambodia and Thailand hit $3.71 billion, and by September 2024, it had grown by 12.4% compared to the previous year. This surge in cross-border trade is a magnet for investors looking to capitalize on the region's economic potential. Pailin's proximity to Thailand makes it a prime spot for those interested in tapping into this thriving trade corridor.
The Cambodian government is backing this momentum with a $9.22 billion public investment program for 2023-2025. This initiative includes projects aimed at boosting connectivity with neighboring countries like Thailand. Improved infrastructure means easier access and more opportunities for businesses in Pailin, making it an attractive option for investors.
Another enticing factor is the development of Pailin's cassava industry. The Ministry of Commerce is pushing the National Cassava Policy 2020-25, which aims to shift from traditional to commercial production. This policy is designed to draw investment for processing plants, enhancing trade competitiveness and positioning Pailin as a promising hub for agricultural investments.
Investors are also eyeing Pailin for its potential in cross-border commerce. The region's strategic location near Thailand not only boosts trade but also opens doors for various business ventures. With the government's focus on infrastructure and industry development, Pailin is poised to become a key player in the regional economy.
For those considering property investment, Pailin offers a unique blend of opportunities. Its growing trade ties with Thailand, government-backed infrastructure projects, and thriving agricultural sector make it a compelling choice. As the region continues to develop, investors can expect to see even more growth and potential in the coming years.
Sources: Phnom Penh Post, Nation Thailand, Open Development Cambodia
2) Koh Kong is attracting eco-friendly developments with growing interest in sustainable tourism properties
Koh Kong is quickly becoming a prime destination for eco-friendly developments.
One major factor is the substantial investment in a green special economic zone in the province. This project, valued between $400-$800 million, aims to create a hub for eco-friendly industries like renewable energy and sustainable waste management. Such initiatives are drawing foreign investments and encouraging environmentally conscious practices across various sectors.
The Cambodian government is also pushing for sustainable tourism by launching initiatives that focus on community-based tourism projects. These projects involve local communities in eco-friendly practices, helping to protect natural resources and cultural heritage. This approach ensures that tourism development directly benefits the local population. The establishment of the National Committee for Management and Development of Community-Based Tourism and Ecotourism in 2021 highlights the government's commitment to this cause.
Interest in eco-tourism activities in Koh Kong has surged, especially during and after the COVID-19 pandemic. In 2022, the Ministry of Environment approved 307 small-scale ecotourism projects, showing the growing interest in sustainable tourism among travelers. Koh Kong's natural attractions, like the Cardamom Mountains and mangrove forests, offer perfect settings for eco-tourism initiatives, supported by projects like the Sustainable Landscape and Ecotourism Project (CSLEP).
For those considering property investment, Koh Kong offers a unique opportunity to be part of a region that is not only beautiful but also committed to sustainability. The province's focus on eco-friendly developments and sustainable tourism makes it an attractive option for investors looking to align with green initiatives.
With the government's proactive stance and the rising demand for eco-tourism, Koh Kong is poised to become a leader in sustainable development. This makes it an exciting time to explore property opportunities in the area.
Sources: Commerce Cambodia, Travel and Tour World, Open Development Cambodia
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3) Siem Reap's Wat Bo area is popular for its traditional and modern properties offering strong tourist rental income
Siem Reap's Wat Bo area is a hotspot for tourists due to its charming mix of traditional and modern properties.
This blend appeals to a wide range of visitors, both local and international, who are eager for diverse accommodation options. The area is bustling with activity, and hotels and guesthouses often enjoy high occupancy rates, reflecting its popularity.
With a median monthly rent of $598, Wat Bo offers a variety of properties for rent, indicating a strong demand for accommodations. This demand is a key driver of rental income, making it a lucrative spot for property investors.
Investors are particularly drawn to Wat Bo because of its competitive rental yields, which range from 7-9%. This means that property owners can expect significant returns on their investments, especially from Western-style villas and strata-title condos.
Moreover, sales profits in the area can reach 20-30%, making it an attractive opportunity for those looking to capitalize on the booming tourism industry in Siem Reap.
Wat Bo's unique appeal lies in its ability to offer both traditional charm and modern convenience, ensuring a steady stream of tourists and a strong rental market.
Sources: IPS Cambodia, FazWaz, Khmer Times
4) Stung Treng is attracting interest for its untapped real estate potential with upcoming infrastructure projects
Stung Treng is catching eyes for its real estate potential, thanks to upcoming infrastructure projects.
One major development is the new rail freight station at Steung Bot, which will boost transport links between Cambodia, Thailand, and other Greater Mekong Subregion countries. This means easier movement of heavy cargo and agricultural goods, making the area more appealing for businesses.
The Cambodian government is pushing regional development in Stung Treng, aiming to draw in investments and tourists by highlighting the province's natural beauty and strategic location. Their focus on sustainable development and eco-tourism shows a strong commitment to the area's growth.
Foreign investors are increasingly interested in Stung Treng, attracted by its untapped potential and serene riverine landscapes. This makes it a prime spot for eco-tourism and sustainable projects, which in turn is expected to boost the local real estate market.
With these developments, Stung Treng is becoming a hotspot for those looking to invest in a region that combines natural beauty with strategic growth opportunities.
Sources: Exploring the Unique Strengths of Cambodian Provinces, Regional Investment Framework (2025–2027)
5) Kampot attracts interest for affordable land and high return potential as tourism grows
Kampot is catching eyes for its affordable land prices, even as the economy slows down.
Some areas have seen prices drop by up to 50% from their peak in 2019 and 2020, making it a hotspot for investors seeking budget-friendly options. This price dip is particularly appealing to those looking to get more bang for their buck.
Land transactions are on the rise, with 90% of buyers coming from Phnom Penh. This trend shows that investors and commercial entities are keen to capitalize on Kampot's lower prices and the potential for growth.
The influx of tourism-related businesses, including big names like Starbucks and Brown cafes, highlights a growing demand for consumer goods and services in Kampot. This surge in business activity is a clear sign of the area's increasing appeal.
Real estate prices are climbing, driven by the booming interest in tourism. As more businesses set up shop, the local economy is poised for growth, making Kampot an attractive investment destination.
With tourism on the rise, Kampot offers a unique opportunity for investors to tap into a market with high potential returns. The combination of affordable land and growing tourism makes it a compelling choice.
Sources: Khmer Times, Realestate.com.kh
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6) Otres Beach in Sihanoukville is experiencing a property boom due to rapid development and rising rental yields
Otres Beach in Sihanoukville is buzzing with property interest due to its rapid development.
Property prices here are climbing, with rates between $2,500 and $3,500 per square meter, showing strong demand. This trend is likely to continue, with prices expected to rise by 3% to 7% in 2025 compared to 2024. The area is becoming a magnet for investors, especially from Indonesia and China, who are revamping old buildings and boosting the rental market.
The influx of foreign tourists is another big draw. In 2023, 2.28 million tourists visited Cambodia, and this number is projected to hit 7 million by 2025. This surge in visitors is driving up the demand for real estate, as more tourists mean more need for accommodations and business venues.
Government projects are also making Otres Beach more accessible. New transport links and urban regeneration efforts are enhancing connectivity, making the area more attractive. With over 360 ongoing residential and commercial projects, the region is experiencing a development boom.
These factors are transforming Otres Beach into a prime spot for property investment. The combination of rising property prices, increased foreign investment, and government infrastructure projects is creating a perfect storm for growth.
Sources: Phnom Penh Post, Khmer Times, Sihanoukville Price Forecasts
7) Kep attracts buyers with scenic coastal properties and growing demand for vacation rentals
Kep is drawing attention for its stunning coastal properties and the booming interest in vacation rentals.
With property prices on the rise across Cambodia, especially in coastal regions, Kep is poised for a surge in property values. This mirrors the anticipated growth in Phnom Penh, where property prices are expected to climb by 5% to 10% by 2025, driven by economic growth and foreign investment.
International tourist arrivals in Cambodia jumped by 18% in early 2024, signaling a growing fascination with the country's coastal gems. Many visitors hail from nearby countries like Thailand, Vietnam, and China, suggesting that Kep's allure is reaching a wider audience. This influx is likely to fuel the demand for vacation rentals.
The Cambodian government is actively promoting tourism in coastal areas, which is expected to further boost the demand for vacation rentals in Kep. The Ministry of Tourism anticipates attracting around 7 million international visitors by 2025, surpassing pre-pandemic numbers. This support, coupled with infrastructure developments like roads and utilities, makes Kep even more attractive to tourists and property buyers alike.
As Kep's popularity grows, the local real estate market is becoming increasingly appealing to investors. The combination of government backing, improved infrastructure, and a steady stream of tourists creates a promising environment for those looking to invest in vacation rentals.
For potential buyers, Kep offers a unique opportunity to tap into a market with rising demand and scenic beauty. The ongoing developments and increasing tourist interest position Kep as a prime location for property investment.
Sources: EAC News, Khmer Times
8) Koh Rong is a top spot for beachfront investments due to its rising popularity with international tourists
Koh Rong is quickly becoming a hotspot for beachfront investments, thanks to its rising fame among international tourists.
In 2023, the island caught the eye of digital nomads who were drawn to its affordability and stunning natural beauty. This trend didn't slow down in 2024, as more foreign tourists flocked to Cambodia, showing a growing interest in places like Koh Rong.
Investments in infrastructure have ramped up, especially in internet connectivity, which is a big deal for digital nomads. The improvements in passenger piers and beach amenities in Preah Sihanouk Province show a real push to boost tourist facilities.
Koh Rong is also seeing a surge in beachfront resorts and hotels, meeting the increasing demand from tourists. The Asian Development Bank predicts a big jump in tourism revenue for the area, underlining the economic promise of investing in Koh Rong's tourism industry.
For those considering property investments, Koh Rong offers a unique opportunity. The island's blend of natural allure and growing infrastructure makes it a compelling choice for investors looking to tap into the tourism boom.
With its pristine beaches and improving amenities, Koh Rong is not just a beautiful escape but a smart investment destination for those eyeing the future of tourism in Southeast Asia.
Sources: Khmer Times, Mighty Travels
Everything you need to know is included in our Real Estate Pack for Cambodia
9) Bavet near the Vietnam border is experiencing a real estate boom due to its strategic trade location
Bavet is buzzing with real estate activity thanks to its prime spot near the Vietnam border.
With trade between Cambodia and Vietnam on the upswing, Bavet is becoming a hotbed for industrial parks and economic zones. This growth is not just about numbers; it's about the strategic advantage Bavet offers for cross-border trade.
Property prices are climbing as demand from residents and investors heats up. The buzz is partly due to eco-friendly urban projects and mixed-use developments that are turning heads. Plus, the Cambodian government is pouring money into infrastructure, like road extensions and historic renovations, which is boosting property values.
Foreign investors are eyeing Bavet's commercial scene, with a noticeable uptick in foreign direct investment in real estate. New businesses and factories are popping up, drawn by Bavet's trade-friendly location. The logistics and transportation sectors are also on the rise, thanks to infrastructure improvements that make moving goods easier.
All this activity is making Bavet a magnet for those looking to capitalize on its strategic position. The city's growth is a testament to its role as a key player in the region's economic landscape.
Sources: The Investor
10) Poipet's real estate is booming due to casino industry growth driving up property values
Poipet is buzzing with a real estate boom thanks to its thriving casino industry.
With new casinos popping up, foreign investors are flocking to Poipet, drawn by enticing tax incentives. This influx of investment is transforming the town into a real estate hotspot, where property values are on the rise.
Media outlets are shining a spotlight on Poipet, labeling it a burgeoning casino hub. This attention is attracting both tourists and investors, eager to be part of the town's exciting transformation. The steady stream of Thai nationals crossing the border is a testament to the growing demand for housing and commercial spaces.
The Thai government's plans to introduce casino resorts in various provinces signal a strategic focus on the casino industry. This move could spur economic growth and boost real estate development in Poipet, mirroring the success seen in other Cambodian cities like Sihanoukville.
In Sihanoukville, massive investments in real estate have paid off, and Poipet seems to be on a similar path. The town's potential for growth is evident, with the casino industry acting as a catalyst for increased property values.
As Poipet continues to evolve, the real estate market is poised for further expansion, driven by the casino boom and the influx of both tourists and workers. The town's transformation is a clear indicator of its promising future in the property sector.
Sources: Nation Thailand, GGB Magazine, Chulalongkorn University
11) Battambang is a prime destination for investors seeking affordable properties with high appreciation potential
Battambang is quickly becoming a hotspot for investors seeking low-cost properties with significant appreciation potential.
One major reason for this surge in interest is the Cambodian government's focus on improving infrastructure. A new road connecting Siem Reap and Battambang is on the priority list, which will boost transportation connectivity and make the area more appealing to investors. This development is part of a broader plan to enhance the region's accessibility and attractiveness.
Compared to cities like Phnom Penh and Siem Reap, Battambang offers more affordable property prices. This affordability, coupled with the potential for property value growth, makes it a compelling market for investment. As Cambodia's economy grows and foreign investments pour in, property prices are rising, and Battambang is likely following this trend.
Foreign direct investment in Cambodia's real estate market is on the rise, and Battambang is poised to benefit from this influx. The city's expanding infrastructure and economic activities are expected to draw more foreign investors, further driving up property values. The government's urban development plans, including a strategic local economic development initiative, show a clear effort to improve Battambang's infrastructure and economic landscape.
These plans are not just about roads; they encompass a broader vision for the city's growth. With a focus on enhancing local economic activities, Battambang is becoming an attractive destination for investors looking for promising opportunities. The combination of government support and strategic development is setting the stage for significant growth in the area.
As infrastructure improves, Battambang's real estate market is expected to see continued interest from both local and international investors. The city's potential for appreciation, along with its affordability, makes it a prime target for those looking to invest in Cambodia's burgeoning property market.
Sources: Construction-Property, IPS-Cambodia, ADB
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12) Kampong Cham attracts interest for its affordable housing and potential future growth as a regional hub
Kampong Cham is catching eyes for its affordable housing market and potential as a future regional hub in Cambodia.
One big reason is the infrastructure boom happening there. The Ministry of Rural Development is busy building over 110 kilometers of roads, including in Kampong Cham. This kind of development is a game-changer, improving connectivity and making the area more attractive for both living and investment.
The government is also pushing for regional economic growth with projects like the Agricultural Chain Price Promotion and Enhancement Project. Supported by various international and local organizations, these initiatives aim to boost rural infrastructure and connectivity, likely sparking economic activities and drawing more businesses to the area.
Property prices in Kampong Cham are generally lower than in major cities like Phnom Penh and Siem Reap. This affordability makes it a hot spot for local and international investors seeking cost-effective housing solutions. With ongoing infrastructure improvements, the environment is ripe for future growth.
New businesses and industries are setting up shop in Kampong Cham, adding to its allure. The city's road links to major Cambodian cities, including Phnom Penh, make it easier for new enterprises to establish themselves, leading to job creation and economic development. This can attract more people to the area, boosting demand for housing and services.
All these factors combined make Kampong Cham a promising place for those looking to invest in property, with its growing appeal and potential for future growth.
Sources: Greater Mekong, EAC News, Wikivoyage, Realestate.com.kh
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.