Constructing confidence: Cambodia’s bold blueprint in real estate recovery

Brick by brick, Cambodia paves its path in ASEAN real estate 

Cambodia’s commercial real estate market, currently in an evolutionary phase, is showing signs of promising growth and innovation despite global economic challenges. As reported by Khmer Times, industry professionals in the Kingdom are offering varied, yet optimistic assessments of the sector’s immediate prospects. 

CEO of The Room Architecture & Design Pawel Siudecki sees the current landscape as a canvas for creativity. He suggests the introduction of mixed-use developments tailored to specific market niches could inject much-needed innovation into the sector. This perspective aligns with the views of Jolyda Sou, Managing Director of Prestige Consulting, who notes the sluggishness due to slow construction and excess supply. However, Sou emphasises the underlying trend towards sustainability and cost-efficiency in the commercial real estate market. 

Vichet Lor, President of Global Real Estate Phnom Penh Association, highlights the high returns on investment offered by the Cambodian property sector, attributed to the use of the USD as the functioning currency. This factor, combined with the market’s emerging status, suggests significant growth potential, especially given the rising urbanisation rate in the city. 

In a significant move to revive the real estate sector, Prime Minister Hun Manet has launched an investment promotion programme aimed at revitalising the sector in Preah Sihanouk province. According to BNN, this initiative addresses the challenge of deserted construction projects, a legacy of the COVID-19 pandemic’s economic impact. The programme, inaugurated symbolically with the opening of a concrete bridge in Koh Kong province, signals a journey towards economic recovery. 

The resilience of Cambodia’s economy provides a supportive backdrop for the real estate sector. Braving global headwinds, the Kingdom’s economy grew by 5.5 percent in 2023 and is predicted to further grow by 6.4 percent in 2024, surpassing ASEAN averages, reported Khmer Times. This economic stability, alongside a strategic governmental focus on the sector, creates an optimistic environment for growth. 

Related: The 9th PropertyGuru Cambodia Property Awards begin search for the kingdom’s finest real estate

The Phnom Penh Post reports that the government’s extension of certain tax exemptions for the real estate and construction sector until the end of 2024 is a strategy to stabilise the market and attract more investors. Such initiatives reflect the government’s commitment to supporting the sector through challenging international crises. 

Adding to the sector’s accolades, Cambodian developers shone brightly against the region at the PropertyGuru Asia Property Awards Grand Final gala in 2023. Kambujaya Development Co., Ltd. was distinguished with the Best Breakthrough Developer (Asia) award, and Vue Aston by The Peninsula Capital Co., Ltd. received the Best Waterfront Condo Development (Asia) title. These awards underscore the innovative spirit and excellence prevalent in Cambodia’s real estate sector. 

By and large, Cambodia’s commercial real estate market is navigating a path of growth and innovation, supported by strategic government initiatives and buoyed by a resilient economy. With a focus on sustainable and efficient development, the sector stands as a testament to the country’s dynamic evolution in the face of global economic challenges. 

Know any award-worthy residential, commercial, or industrial projects in the country? Nominate them for the 9th annual PropertyGuru Cambodia Property Awards on or before 31 May 2024. To know more, visit AsiaPropertyAwards.com/Award/Cambodia/. 

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].