Cambodia’s real estate market in 2025 presents a complex landscape, with challenges and opportunities. Part of the complexity is what data can be trusted, what the investment climate is like, and what policies and plans need to be implemented to successfully influence real estate investment decisions.
The industrial real estate sector is seeing a broad range of opportunities, especially in special economic zones, which are increasingly important as engines for diversifying Cambodia’s manufacturing and trade output.
Property prices, relative to the region, still offer good opportunities for development, value, and growth.
Will the market change? Understanding this landscape requires a clear understanding of key trends, economic drivers, and strategic adaptation.
What are the trends in the Cambodian real estate market?
What are the key indicators reflecting the potential for change in Cambodia’s real estate market:
Occupation rate: Office occupancy is estimated to be 65 percent by early 2025, with retail slightly lower at 61.8 percent.
Average rental price: Office rents average US$27 per square meter and retail rents are US$22.6 per square meter.
Housing sector: Over 3,200 condo units were launched in 2024, with 240 apartment units completed. Although high-end condos are priced at around US$2,650 per square meter, the environment is still competitive and cheaper than major regional cities and the price is highly competitive for first-time buyers.
Investment: Cambodia ranked 13th for investment or business development by US and European foreign investors, according to a survey by Standard Chartered, and trade agreements, incentives, and ease of business management and ownership by foreigners are favorable.
Urbanization: The population is growing, with more people moving to Phnom Penh and Siem Reap in search of work. This trend is creating demand for housing and commercial space, and overall wages are rising as Cambodia moves out of “Least Developed Country” (LDC) status on December 19, 2029.
Demographics: A young population with an average age of 26 in 2024, coupled with urbanization, will drive demand for both residential and commercial real estate.
You can learn more about Cambodia’s economic growth outlook for 2025 on this website.
What is driving demand for industrial and real estate investment?
Industrial real estate is expected to grow in 2025, and demand for industrial sites is forecast to improve, driven by foreign investment and the relocation of factories and special economic zones to Cambodia. This growth is attributed to the ongoing tensions between the world’s major economies, which have made Cambodia an attractive destination for industrial development.
There are three special economic zones in Cambodia: Export Processing Zones (EPZs), Special Economic Zones (SEZs), and Industrial Parks.
The Council for the Development of Cambodia approved 414 investment projects in 2024, but 10 new special economic zones were also established with a registered capital of approximately US$850 million. The total value of exports from Cambodia’s special economic zones in 2024 was over US$5 billion.
In 2025, the Council for the Development of Cambodia received 68 applications for investment in January, worth US$748 million. 29 of these projects are set to operate in special economic zones, while 39 projects will be located outside the special economic zones across several provinces.
As of early February, Cambodia had received 12 new investment proposals worth a total of $135 million.
A number of socio-economic factors are driving demand in the Cambodian real estate market. The growth of investment in the capital market is also increasing. In 2023, foreign investors registered 552 out of 683 capital markets, totaling $1.223 billion.
Infrastructure projects also present opportunities. In 2025, the biggest change is expected to be the opening of the Tegucigalpa International Airport in mid-2025. This will lead to growth, particularly in Kandal province and south of Phnom Penh, and new flyovers, bridges and connecting roads are opening up new areas for commercial and residential development.
Financial challenges and incentives
Along with the opportunities, the Cambodian real estate sector faces a number of challenges.
There is currently an oversupply of condos and market price corrections are ongoing. Buyers prefer new properties over resale properties, and global economic uncertainty could affect investment decisions and market stability.
The Cambodian Ministry of Economy and Finance has provided tax exemptions, additional relief measures to support Cambodia’s real estate sector and ease financial pressures on property owners, investors and developers.
Stamp Duty Exemption: This relief will last until the end of 2025 for properties of certain values and provides incentives for investment in mid- to high-end properties in properly registered residential projects.
Capital Gains Tax – for certain types of income, including rental contracts, real estate, leases, investment properties, business goodwill, intellectual property and foreign exchange, which will be further extended until the end of 2025.
To understand the challenges and seize the opportunities, investors and buyers should follow the guidance over the last 12 months or more, looking for reputable developers and properties.
Learn more about Cambodia’s additional property tax benefits
Outlook for 2025
The Cambodian real estate market in 2025 requires a balanced approach, with investors and buyers needing to navigate the complex landscape while adapting to various developments. Urbanization, infrastructure development, and international investment are providing long-term opportunities, and the country’s economic growth remains strong for many years to come with political stability.
