Cambodia ‘emerging as key target for commercial real estate investment’
Cambodia ‘emerging as key target for commercial real estate investment’
Despite a slump in Cambodia’s housing market, Phnom Penh is set to emerge as a key target for commercial real estate investment in Southeast Asia, a new forecast says.
The trend is being driven by foreign investment, particularly from China, Singapore-based research house PropertyGuru said in its Asia forecast for 2025, released on Wednesday.
“Though Cambodia’s economy is expected to grow by 5.8 percent … (in 2024), the real estate sector faces a 39 percent decline in approved development permits,” it said.
“However, the opening of commercial projects like the Maritime Tower in Phnom Penh and the Maline Office Park suggests that demand for quality office space remains.
“Foreign direct investment, particularly from China, continues to play a crucial role in sustaining Cambodia’s commercial sector.
“This trend will continue as foreign investments in the commercial sector increase, with Phnom Penh emerging as a key destination for Southeast Asian commercial real estate.”
The Maritime and Marin office buildings in Phnom Penh have opened in the past three years and continue developing.
“Asia’s growth potential has always been resilient,” the PropertyGuru report said.
“But shifting consumer preferences, evolving regulatory environments, and fluctuating economic policies mean commercial real estate investors must remain cautious yet agile.
“Commercial real estate in the region presents a mixed outlook, with some markets flourishing and others grappling with structural challenges.”
Cambodia’s housing market has been hit by a glut in supply, rising construction costs and stricter regulations aimed at controlling speculative investments, analysts say.
“These are tight times for the real estate sector – and they will be for at least five years,” Sam Soknoeun, President of Cambodia’s Global Real Estate Association and the SAM SN Group, told Khmer Times this week. “Nobody wants to buy at the moment.”
Despite the housing slowdown, commercial and industrial real estate are expected to be the driving for for Cambodia’s construction sector, which is forecast to outpace overall Southeast Asian growth over the next three years.
The sector is expected to grow 6.8 percent this year, up from 5.8 percent in 2024 and surging to 7.3 percent a year from 2026-2028, according to a report released by Research And Market this week. That compares with an average across Southeast Asia of 6 percent a year to 2028 forecast recently by another research house, GlobalData.
