Infrastructure-driven transformation is reshaping Cambodia’s real estate landscape

Transportation advancements in particular are shaping property values and real estate dynamics in the country

The surge in demand for residential, commercial, and industrial properties in Cambodia has driven the development of various infrastructure projects. According to IPS Cambodia, understanding factors influencing property values is crucial for investors, developers, and policymakers. Notably, transportation infrastructure is a key driver of property value appreciation. 

As Cambodia modernises and attracts foreign investment, improvements in roads, railways, airports, and ports facilitate trade, tourism, and connectivity. This not only boosts the economy but also enhances citizens’ quality of life by providing better access to services and opportunities. The government’s plans for transportation development include roads, railways, airports, and ports to enhance connectivity, economic growth, and foreign investment. 

Improved infrastructure affects property values by enhancing accessibility, driving economic growth, transforming land use, and influencing property market trends. A case study conducted by C9 Hotelworks on Siem Reap’s Hotel & Branded Residences illustrate how transportation advancements positively impact property values. 

Related: Trusted development with proven track record: Angkor Grace Residence and Wellness Resort

The report uncovered that Siem Reap’s real estate market is undergoing significant changes, influenced by transportation improvements and evolving buyer preferences. Unlike its neighbouring countries, Cambodia has been slower to embrace hotel-branded residences, despite its growing property market. The city of Siem Reap, known for its tourism, has been lagging due to its dependence on that industry and limited diversification. 

Nevertheles, the real estate landscape is currently shifting due to factors like political stability, new airport plans, and enhanced road networks. These developments are expected to boost tourism, economy, and property prices. The market is diversifying with new projects, including the debut of Angkor Grace Residence & Wellness Resort, appealing to both local and foreign buyers. This particular project have previously won two major awards at the 2019 PropertyGuru Cambodia Property Awards for Best Interior Design and Best Architectural Design.

Chinese investors, seeking rental income and capital appreciation, are notable participants. The pandemic has influenced buyer behaviour, emphasising flexible property usage and rental management programs. New infrastructure, like the airport and expressway, could reshape the market further. Time will determine the full impact of these changes.

The Property Report editors wrote this article. For more information, email: [email protected].