There are indications from the Cambodian real estate sector that the market is showing signs of recovery in 2025, and reports from the National Bank of Cambodia (NBC) and government officials, including the Prime Minister have expressed optimism about the sector’s recovery, citing a report from the Ministry of Land Management, Urban Planning, and Construction.
Cambodian real estate offers several benefits, including a low investment threshold, affordable property prices, low taxes, and minimal holding costs, while foreign Investors can also enjoy permanent property rights. A recent report also suggested that Cambodia is set to continue to benefit from an influx of foreign investment with numerous new companies having entered the market during 2024.
As an investment opportunity, Cambodia provides high rental returns and a relatively simple transaction process, making it an attractive option for investors locally and from abroad.
Property Types in Cambodia
Cambodia offers various types of properties, including apartments and condos, terraced houses, shophouses, townhouses, villas, traditional wooden houses and even colonial villas which have a specific aesthetic appeal and are rich in history but might suit an investor looking to renovate.
Condos are the most popular choice for foreign property buyers due to their range and diversity of availability, ease of purchase and legality for foreign property owners in Cambodia.
With the diversity of properties available on the market - what should you consider?
Cambodian Property Ownership
Cambodia has two main types of property titles: hard titles and soft titles.
- Hard Title: A government-issued, state-recognised ownership document, offering the highest level of legal protection.
- Soft Title: Issued by local authorities, it is more common but less secure and may be subject to disputes.
There has also been an ongoing effort to digitise all types of property titles and boundaries to settle disputes and make the sale and purchase of all property and land more transparent and accountable.
For foreign buyers, the only available property title is Strata Title which is a subcategory of a Hard Title and predominately applies to condominiums built on land with a hard title - this ensures legal security and ownership rights for foreign investors in the Kingdom.
You can also explore the option of investing via a Trust which has become increasingly popular in the Kingdom.
Condominiums & Serviced Apartments
A condominium in Cambodia refers to a building or a complex of buildings that contain several individually owned flats. Condominium developments are generally high-rise buildings that are newly constructed with a wide variety of modern furnishings and amenities.
While most condominium units are in buildings that only house condos and amenities, there are also mixed-use developments that can also house space, commercial offices, and, in some cases, hotels.
- The total existing supply of serviced apartments in Phnom Penh increased to 8,400 by the end of 2024, reflecting a 2 per cent year-on-year growth.
- The supply of serviced apartments is projected to reach 10,259 units, indicating a 22 per cent growth by 2027.
There were indications that 2024 showed signs of early stages of a rebound in the condominium market. - 57,772 condo units across 132 projects were added to the supply in 2024.
Look at the Top Property Condo Handovers Expected In Phnom Penh In 2025.
Boreys in Cambodia (Landed Property)
A borey consists of a mixture of single villas, twin villas, hybrid villas, linked houses, shophouses, flat houses as well as retail spaces all behind a gated community.
The Ministry of Land Management, Urban Planning, and Construction (MLMUPC) plays a role in the development and regulation of boreys.
These developments tend to be concentrated on the outskirts of cities and there is a wide range of borey options. Borey homes are the preferred choice for Khmer families looking to invest in a new property, as they provide full infrastructure within the compound and a secure place for children to be raised.
- There was a slowdown in landed housing construction in 2025 but developers have also started integrating the community and well-being themes.
- The total supply of landed housing and boreys in Phnom Penh was 93,573 units across 314 projects as of H2 2024, reflecting an 8.2 per cent year-on-year increase.
Villas
Villas refer to freestanding houses, often featuring private gardens or outdoor spaces and range from modern constructions to restored colonial-era homes, offering a blend of contemporary and historical charm.
Villas in central locations are in high demand and can demand higher prices and many have also been converted to cafes and restaurants in Phnom Penh. Sadly due to the rapid urban development, some standalone colonial villas were being replaced by new buildings, but some do have heritage status and are an important part of the capital, for example.
Villas are especially popular among wealthier investors as they are larger properties and are seen as a solid investment, as they combine the benefits of owning both a house and land.
Shophouses and Renovated Shophouses
A shophouse combines both commercial and residential purposes within a single building and these are commonly found in urban areas. These shophouses can be several floors high and have a long and narrow layout, with the properties arranged in rows, sharing a common wall with neighbouring houses.
These properties are very popular with Cambodian families as the shop aspect allows for an additional revenue stream, but expats have also been fond of these in recent years. It is not uncommon for the ground floor to also be used as a garage in the evenings to accommodate the family vehicles.
Some area regulations stipulate that shophouse owners must use the ground floor of their homes for retail space and operate a shop if they wish to reside there.
Renovated shophouses are becoming increasingly popular as they include modern amenities. These generally feature mezzanine floors, which provide additional bedroom space too
Traditional Wooden Khmer Houses
Traditional Khmer houses were originally made from wood and built on stilts to protect them from flooding and the seasonal weather, with the space underneath used as a family area or to keep livestock safe at night.
With the pivot in urban development, these are less commonly found in the urban centres but wooden houses are still common in the rural areas and alongside rivers in popular areas such as Kampot.
Modernisation also means the space under the stilted houses is often turned into concrete ground floors or repurposed for businesses, like restaurants or tourism ventures, and for parking vehicles.
These houses are important in Khmer culture and efforts are being made to preserve them as part of Cambodia’s heritage and promote them through eco-tourism.
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