Cambodia's property market in 2025 presents a complex picture, characterised by both challenges and potential opportunities. Part of the complexity is ascertaining what data is reliable, what the investment mood is like, and what policies and plans will be rolled out successfully which could impact property and real estate investment decisions.
Industrial real estate is seeing a wide scope of opportunities, especially in the Special Economic Zones which are becoming increasingly important as an engine in driving the diversification of Cambodia’s manufacturing and trade output.
Property prices, when compared to the region, still offer good opportunities at specific development and price points and see room for growth.
Is there a shifting market? Navigating this landscape requires a nuanced understanding of key trends, economic drivers, and strategic adaptations.
What Are The Cambodian Property Market Trends
What are the key indicators reflect the shifting dynamics within Cambodia's property market:
Occupancy Rates: Office occupancy rates are estimated at 65 per cent at the start of 2025, with retail spaces slightly lower at 61.8 per cent.
Prime Rental Prices: Office rents average US $27 per square meter, and retail rents were US $22.6 per square meter.
Residential Sector: More than 3,200 condominium units were launched in 2024, with 240 serviced apartments completed. Although high-end condominium sales prices are around US $2,650 per square meter 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.
Investment: Cambodia has been ranked 13th for investment or business development by US and European foreign investors according to a survey from Standard Chartered, and new trade deals, incentives and relative ease of foreigner-owned business and property ownership rules are favourable.
Urbanisation: Cambodia's urban population is growing, with more people moving to cities like Phnom Penh and Siem Reap for job opportunities. This urbanisation trend is creating demand for housing and commercial spaces and general salaries are increasing as Cambodia will leave the “least developed country” (LDC) on December 19, 2029.
Demographics: A young population, with a median age of 26 in 2024, coupled with urbanisation should drive demand for both residential and commercial properties.
You can read more about Cambodia’s 2025 Economic Growth Expectations
What is Driving Demand For Industrial Investment and Associated Real Estate
Industrial real estate is expected to experience growth in 2025 and demand for industrial sites is projected to improve, driven by foreign investment and the relocation of factories and special economic zones to Cambodia. This growth is attributed to ongoing tensions between global economic powers, making Cambodia an attractive destination for industrial development.
In Cambodia, there are three types of SEZs: Export Processing Zones (EPZs), Special Economic Zones (SEZs), and industrial parks.
Council for the Development of Cambodia (CDC) approved 414 investment projects in 2024 but there were also ten new Special Economic Zones (SEZs) being established with registered capital valued at approximately US $850 million. The total export value from Cambodian Special Economic Zones in 2024 was more than US $5 billion.
In 2025, the CDC received 68 applications for investment in January valued at US $748 million which were sanctioned; 29 of these are set to operate within Special Economic Zones (SEZs) while 39 projects will be located outside the SEZs spread across several provinces.
By early February, Cambodia received 12 new investment proposals collectively valued at US $135 million
Several socioeconomic factors are driving demand within the Cambodian property market. The rise of investment into Trusts is also raising this - In 2023, foreign investors made a significant mark, with 552 out of 683 trust registrations being foreign, totalling US $1.223 billion.
Infrastructure projects are also an opportunity. Arguably in 2025, the biggest and most transformative one is the scheduled completion and opening of the Techo International Airport in mid 2025. This is expected to result in transformative growth, particularly in Kandal province and southern Phnom Penh and new flyovers, bridges and interconnectivity are opening up new areas for development for commercial and residential projects.
Challenges and Financial Incentive Considerations
Despite potential opportunities, the Cambodian property sector faces several challenges.
There is broadly an agreement on the oversupply currently of condos and price corrections remain. Buyers prefer new properties over resale homes, and the global economic uncertainty can impact investment decisions and market stability.
There have been efforts by the Cambodian Ministry of Economy and Finance to offer tax exemptions, additional relief measures, and suspensions designed to support Cambodia’s real estate sector and ease financial pressures on property owners, investors, and developers.
Stamp Duty Exemptions - This relief will last until the end of 2025 for specific-priced properties and incentivises investment in mid- to high-range properties within properly registered housing projects.
Capital Gains Tax - For specific types of income, including lease agreements, investment assets, intellectual property, goodwill, and foreign currency, this has been further delayed until the end of 2025
To navigate the challenges and capitalise on opportunities, investors and buyers should heed the advice of the past 12 months or more - of looking for reputable developers and properties which are on track for completion.
Find out more about Cambodia’s extended property tax benefits.
Outlook for 2025
The Cambodian property market in 2025 requires a balanced approach, with investors and buyers needing to navigate a complex landscape while remaining adaptable to evolving conditions. The ongoing urbanisation, infrastructure development, and international investment offer long-term opportunities and the economic growth of the country is still strong for several years to come while operating in a politically stable environment.
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