The real estate landscape is diverse in Phnom Penh but Boeung Keng Kang, known more commonly as BKK, has remained the most popular area of the capital and continues to demand the most interest and accordingly, the highest property prices.
Phnom Penh still offers relatively affordable property prices compared to Bangkok and Ho Chi Minh City and can yield high rental returns while there remains significant room for capital appreciation. With the city’s emerging market status presenting substantial investment opportunities, top-quality condos and mixed-use developments continue to be added while vital infrastructure projects will try to ensure the city stays ahead of the rapid urbanisation pressures.
Cambodia's urban population is growing and this trend is creating demand for housing and commercial spaces, while the general salaries are increasing as Cambodia will leave the “least developed country” in December 2029.
Lifestyle and Amenities - BKK
Phnom Penh offers property buyers and investors a truly vast range of choices with a mix of traditional and modern lifestyles. In BKK1 in particular, the presence of highly-regarded international schools, shopping centres, and dining and entertainment options combined with the central location has kept BKK as the top choice for expats and investors.
The city’s blend of historical sites and modern developments caters to a diverse population while the anticipated launch of the new Techo Takhmao International Airport in July 2025 may further define and shape the city’s growth and population as the capital is better connected to more destinations around the globe - potentially opening up untapped markets.
You can read more about Navigating Real Estate Investment Opportunities in Cambodia - 2025 & Beyond
Cambodian Property Market Dynamics
Cambodia's real estate market has shown steady growth, notably in Phnom Penh, where property values have been rising due to foreign investment, urbanisation, and a growing middle class. The capital continues to attract both local and international buyers, driving housing demand.
Phnom Penh continues to see growth in its real estate market and the city's real estate sector is characterised by a blend of residential, commercial, and mixed-use developments.
- Land prices are understandably the highest in Boeung Keng Kang, where prices range from $2,800 to $10,000 per square meter (based on Why Cambodia 2023)
- Cambodia offers relatively affordable housing prices compared to other Southeast Asian countries. As of mid-2024, the average condo price in Phnom Penh is around $2,500 per square meter, with an average annual rental yield of 5.3%.
How to Choose a Location in Phnom Penh for Real Estate Investment?
Boeung Keng Kang 1 (BKK1) is Phnom Penh’s most vibrant and prestigious neighbourhood and those living in the area include expatriates, business professionals, and affluent locals. The area is home to numerous international schools, top-tier restaurants, high-end boutiques, and essential services, making it an ideal place to live and invest.
Foreign investors should consider the following factors when selecting a location in Phnom Penh:
- City Center vs. Suburbs: The city center offers proximity to business districts, government offices, and entertainment hubs, leading to higher property values and rental demand, but also higher investment costs. Suburban areas provide larger living spaces at more affordable prices, but investors should consider urban infrastructure, amenities, and commuting time.
- Infrastructure & Development Plans: Future road expansions, public transport projects, commercial hubs, and educational institutions can significantly boost property value.
- Safety & Environmental Quality: Choosing secure and well-maintained communities is essential. Investors should also consider factors like air quality, noise levels, and neighbourhood amenities.
- Market Demand & Rental Potential: Locations near corporate offices, business districts, and tourist attractions generally have higher rental demand and stronger investment returns.
New Developments in BKK1
More than 3,200 condominium units were launched in 2024 in Phnom Penh as well as 240 serviced apartments. The high-end condominium sales prices were around US $2,650 per square meter and there are indications of a competitive environment and comparatively cheaper prices than major cities in the region and a highly competitive cost of entry for incoming buyers.
Buying Property In BKK1
Foreigners can easily purchase apartments and obtain permanent ownership. According to Cambodian regulations, foreign ownership is allowed for up to 70% of a condominium building. Investors with higher budgets can even purchase an entire floor in a development.
In terms of new property condo developments in BKK:
Le Conde BKK1 - This award-winning property is in a prime location and has exceptional amenities in the mixed-use luxury development which includes the BKK Avenue Retail Store, a 240-meter sky jogging track, an indoor swimming pool, a fitness centre, a children's play area and a sky garden as well as an infinity pool, and a 24/7 concierge service. Le Condé BKK1 is a 43-story property that features 4 different types of fully furnished units including studio, one-bedroom, two-bedroom and three-bedroom with integrated smart home features.
Time Square 5 (Time Square 306) - Also commonly known as Time Square 5, the development’s topping-off ceremony was held in September 2024 as the 45-floor project aims to offer 350 modern, spacious units. The building will provide a lobby cafe, gym, kids’ play area, games rooms, an infinity pool, and a garden deck, designed to cater to a modern lifestyle.
Picasso Sky Gemme - Also known as Picasso 2, the 52-floor property was officially launched on 22nd August 2024 and offers a unique blend of art and luxury, inspired by the legendary artist Pablo Picasso. The estimated handover time for these luxury residences is 2028.
Picasso Sky Gemme’s 276 units in this luxurious development are designed based on different phases of Picasso's artistic journey, and there will be indoor and outdoor swimming pools, a pet play area, a children’s playwall, a sky running track, a gym and yoga space, and even a glass bridge with many more desirable amenities announced.
J Tower 3 - When completed will be Cambodia’s tallest building at 77 floors and the 8th tallest in Southeast Asia, J Tower 3 will ensure top-tier property management with a focus on regular maintenance, efficient services, and 24/7 professional support. Its commitment to excellence enhances both resident satisfaction and investment value.
Top Property Condo Handovers Expected In Phnom Penh In 2025
Enhanced Infrastructure & Connectivity
The urban development means there are several major infrastructure projects, such as new roads, bridges, and the upcoming Phnom Penh International Airport expansion, which boost the city's real estate appeal.
The Phnom Penh Department of Public Works and Transport is overseeing the Morodok Techo flyover which is due to open at the end of March 2025 and forms a significant part of the city's ongoing efforts to enhance urban mobility and alleviate traffic congestion.
The flyover is strategically located at the intersection of Preah Monivong Boulevard, Royal Cambodian Armed Forces Boulevard, and Samdech Akka Moha Sena Padei Techo Hun Sen Boulevard and will improve traffic flow and reduce congestion in this busy area, contributing to smoother travel and enhanced urban connectivity.
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The Morodok Techo flyover project is also expected to positively impact the local real estate market by enhancing accessibility and reducing travel times, potentially increasing property values in surrounding areas. This infrastructure development aligns with Phnom Penh's broader urban expansion plans and flood prevention initiatives. As Phnom Penh continues to grow, such infrastructure improvements will play a crucial role in supporting the city's economic vibrancy and quality of life for its residents as well.
In addition to the Morodok Techo flyover, Phnom Penh is also anticipating the development of a new Techo International Airport, which will further boost the city's connectivity and economic growth. The new airport, expected to be one of the largest in Southeast Asia, will play a crucial role in supporting Cambodia's tourism and trade sectors.
As Phnom Penh continues to grow, investors and homebuyers should consider factors such as market maturity, economic stability, and lifestyle preferences when exploring real estate opportunities
With ongoing infrastructure improvements, a free and open economy, and foreign investor-friendly policies, Cambodia’s long-term real estate outlook remains strong and as the supply and demand move toward a more balanced market, property values are expected to rise steadily.
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