Cambodia’s real estate sector braces for 2025 challenges
Cambodia’s real estate sector braces for 2025 challenges
Even though the real estate sector in Cambodia is currently stagnant, developers remain optimistic about its improvement due to the efforts of the Royal Government and other stakeholders in promoting the sector.
However, real estate experts predict that 2025 will bring significant challenges, particularly for first-time developers entering the market, while experienced real estate developers are more likely to succeed in their projects.
Sear Rithy, Chairman of the Board of WorldBridge Group, one of Cambodia’s leading real estate investors, and a developer of the Sport Village project, told reporters on Friday, that currently some parts of the real estate sector, such as urban projects and condominiums, are experiencing stagnation due to oversupply and uncertainties in the regional and global economies.
The real estate challenges in countries like China and Vietnam, compounded by the lingering effects of the Covid-19 crisis, have also exerted pressure on the market, he added.
Rithy acknowledged that sales for the Village Sports Project have been slow.
“We began selling units after completing the SEA Games, during which we built this project to host and accommodate the athletes during the event.
“Following the SEA Games, we have been actively advertising the project. However, the real estate sector has been stagnant during this period, giving buyers many options to choose from among various projects,” he said.
Despite the slow sales, the project sold some units. For developers, slow sales are due to several factors, including economic challenges, the stagnant real estate sector, the impact of the Covid-19 crisis, and various global crises.
“Nevertheless, the Sport Village project remains promising because of its strategic location, which offers future growth potential and is well-equipped with parks, golf courses, shopping malls, schools, hospitals, and strong infrastructure—factors that attract developers to invest here,” Rithy said.
Looking ahead, Rithy expects sales for the project to accelerate. The real estate transactions in this area remain better than in other regions because it is a new development site.
“Within the Sport Village project, Borey sales continue, while the six condominiums have been sold to investors who purchase units with installment payments,” he said.
Both now and in the future, the northern region of Phnom Penh shows great potential for living and investment due to its richness of opportunities, he added.
“For 2024 and 2025, while the real estate sector may remain stagnant overall, Borey and condominium developments are expected to sustain their performance. Additionally, other segments of the real estate sector, such as offices, warehouses, and factory construction, continue to grow this year. When Donald Trump takes office, the ongoing trade disputes between the United States and China have prompted investors to seek more favourable conditions, Rithy said.
“Cambodia, with its geographic advantages, stable economy, and political environment, has become an attractive destination for these investors.
“Overall, the Cambodian real estate sector is poised for improvement, thanks to active government involvement and stakeholder support. The government has introduced various tax incentives and other measures to attract and encourage investment in the sector,” he said.
Kim Kinkesa, CBRE Cambodia Managing Director, said the real estate and condominium market in 2025 closely mirrors the situation in 2024, with a limited number of new projects being introduced. Many of the projects still on the market continue to attract customers, primarily those developed by experienced and reputable companies in this sector.
For new development projects, 2025 presents significant challenges, particularly for first-time developers entering the market, Kinkesa said, adding that, building trust and establishing a strong presence in such a competitive environment requires both experience and a proven track record.
“Projects that are currently performing well and maintaining strong sales tend to be located in city centres, where demand remains high. Additionally, developments spearheaded by seasoned developers with a solid reputation are more likely to succeed,” she said.
“Among these, projects offering affordable prices stand out as particularly appealing to customers, further driving their success,” she added.
In 2024, a total of 2,633 investment projects in the construction sector were approved nationwide, covering an area of more than 10 million square meters and representing an estimated investment value of $4.33 billion, according to the annual report from the Ministry of Land Management, Urban Planning, and Construction (MLMUPC).
This marks a decrease of 15.17 percent in the number of investment projects, investment capital, and construction areas compared to 2023. In 2023, there were 2,924 investment projects, covering more than 12 million square meters with a total investment value of $5.1 billion.
