Why is Khmer Real Estate Market at Boom? 

Khmer Construction and Khmer real estate sector is one of the strongest economic segments for Cambodia, contributing around one-third of GDP growth. According to Asian Development Bank, the sector sustains around 12.4% of total employment, offering 782,500 jobs. The tourism and travel industry of this Southeast Asian Ethnic group is also a vital engine for Cambodia’s economic growth, contributing 11.5% GDP ($2.2 Billion) to the economy.

Both these sectors experienced a major downfall during a pandemic, adversely affecting the banking and financial sectors of the country. According to World Bank 2020 reports, the construction investment fell around 25% year-on-year to $7 billion from January 2020 to November 2020. This downturn increased the risks of assets in the Khmer real estate sector.

But the recent Asian Development Outlook 2022 reports disclosed some positive growth for the country’s real estate sector. According to it, Cambodia’s economy is forecast to grow around 5.3% in 2022 and nearly 6.5% in 2023, revealing promising investment opportunities in Khmer real estate market. Therefore, assisting yourself with a trustworthy Khmer classified portal can reward you with two-to-three-digit profitable returns on your real estate investments.

Covid-19 Effects on Khmer Real Estate Industry:

According to Khmer Times, much of Cambodian’s real estate economy remains standstill during the stricter quarantine impositions. All these measures have not severely affected the construction sectors compared to their neighbouring countries.

However, some property rates and prices (related to urgent resales through bank loans) in Khmer have dropped by 20% and recorded 20% to 30% occasional fire sales in the country. Therefore, the pandemic has led to an average 15% to 20% downfall in the total prices. Moreover, the noticeable absence of Chinese investment amidst the pandemic has also resulted in 50% market downturns. 

Cambodia has an emerging economy, and foreigners are willing to diversify their assets in this emerging market. More than 30% to 35% of Khmer luxury, residential and commercial properties are owned by foreigners, benefitting both the country and the investors. The foreign investment figures have also decreased during the pandemic due to imposed restrictions, affecting the country’s overall economy.

Reasons for Real Estate Boom:

The Global Real Estate Association noted that the kingdom has lifted all the pandemic restrictions and reopened its tourist borders, accelerating the demands for retail space and foreign investments. Khmer’s real estate and construction sector have also been corrected after 2021, recording the rectification from 4% to 2% after tourism and travel uplifts.

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National Bank of Cambodia has released a report reflecting macroeconomic banking sector progress, further increasing domestic activity and investments. Data revealed by the Ministry of Urban Planning, Land Management, and Construction shows that around 4300 new projects for 2021-2023 were approved last year, covering a total cumulative floor area of around 12,998,072 sqm.

Following the reopening of the country’s economy in half of 2021 and 2022, this will influence the growth of Khmer’s property sector, one of the reasons for the Construction and real estate boom. The Khmer Times reported that a huge MNC, Ford, invested substantially in Cambodia’s assembly line. This huge project will be constructed on four-hectare land and begin in April 2022. New commercial projects are also planned in the country’s retail space, covering around 400,000 sqm. The real estate sector is expected to grow by around 190,000 sqm in 2022.

As a part of its 2022 market trends list, Cambodia Investment Review will notice a huge foreign investment as it is slated to be a major gateway to Khmer’s development and boom. Khmer will be tourism-driven in 2022, offering a better long-term potential to the country and a smart city.

Benefits of Investing in Khmer Real Estate in 2022:

Cambodia is the top South East Asian place to visit, and Khmer attracts most of the country’s tourists. It is also a prominent real estate investment destination, offering the best opportunities due to its economic growth. Here are the top 3 reasons why you should invest in Khmer real estate in 2022:

 Property Prices: 

Khmer has been receiving an economic boom in recent years, noting the increase the property prices and values. More investors are turning down Khmer’s real estate sector, driving the opportunities to their finest. Despite the significant growth in property prices in Khmer, the investment rates are still affordable compared to neighbouring countries or cities’ prices.


Investors can claim freehold ownership over their Cambodian investments while following all the rules and regulations. They can now own apartments or condominiums in Phnom Penh, Khmer and Siem Reap and can sell them anytime.

A foreign investor can either own the property under Strata title or share it with legal Cambodian citizens with a 49:51 ratio, where Cambodian citizens will hold 51% of the shares.

Strategic Location:

Cambodia has built its economy from direct investments, generating income sources for the country. It also has a pivot place for foreign investments with strong GDP growth and a free-market economy, inviting and attracting FDI to keep the economy growing. All these factors make Cambodia an ideal destination for long-term foreign investments, and Khmer has the best properties listed in-country, attracting 30% of the total real estate investments.

Final Takeaway:

Covid downturns in Khmer real estate sector are recovering in 2022, and Cambodia has already corrected from 4% to 2% in these initial months. Therefore, Cambodia, especially Khmer, can offer you the best opportunities if you want to divert your funds into foreign investments.

IPS Cambodia, the renowned classified portal, will help you find the best option for your preferences. From French colonial villas to modern apartments, condominiums, and other options, property experts will offer a diverse choice of the best properties in Khmer, Phnom Penh, and Siem Reap.

Connect with IPS trusted partners now to get the handpicked real estate selections for the best long-term and short-term investments.

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