Cambodia’s real estate market is experiencing a dynamic and evolving shift, and real estate prices have generally stabilised, depending on the region and property type.
Phnom Penh continues to attract investment in commercial and high-end residential properties, and the jury is out for Sihanoukville since the announcements on attracting investments to help continue to transform the region.
The long-term outlook for Cambodia is generally positive, considering the ongoing urbanisation, economic development, and evolving demographic trends. According to Statista.com – Cambodia’s real estate market is projected to grow by 1.56 per cent from 2024 to 2028, resulting in a market volume of USD $639.50 billion in 2028.
Ross Wheble, the Country Head for Knight Frank Cambodia, adds his thoughts on the state of commercial real estate in Cambodia and what potential opportunities are within this subsector.
Wheble has been based in the Kingdom for a decade and worked closely with both public and private sector stakeholders to help shape the real estate sector in Cambodia and help improve industry standards and best practices in the industry.
What Are The Current Trends In The Cambodian Commercial Real Estate Market?
The main types of commercial real estate are; office buildings, retail real estate, industrial, factories and warehouses, hotels, as well as commercial land.
“Generally in Phnom Penh, we are now entering an oversupply scenario across all sectors, including office, retail, and hospitality, and it will take some years for the existing supply to be absorbed into the market. This has placed downward pressure on occupancy rates, rents and hotel room rates,” said Wheble.According to the Cambodian Ministry of Land Management, Urban Planning, and Construction (MLMUPC), the total investment capital in real estate and construction projects fell between 2020-2022 with all real estate sub-sectors impacted; residential, industrial, and commercial.
