Cambodia’s Strong 6% Economic Growth Signals New Opportunities for Real Estate Investment

Cambodia’s economic engine is showing remarkable resilience, with GDP growth estimated at 5.8% in 2024 despite global headwinds, according to the Ministry of Economy and Finance (MEF). This upward trajectory is backed by robust activity in key sectors such as manufacturing, agriculture, and—crucially for investors—construction and real estate. For property buyers, developers, and investors, this economic stability reinforces Cambodia’s position as one of Southeast Asia’s most promising emerging markets.

Strong Growth Against Global Uncertainty

The Asian Development Bank (ADB), in its 2024 Asian Development Outlook, confirms Cambodia’s economy is rebounding from pandemic-era challenges, outperforming several regional peers. While global supply chain disruptions and rising interest rates have dampened growth in some ASEAN markets, Cambodia continues to benefit from strategic trade partnerships, rising foreign direct investment (FDI), and pro-business government reforms.

MEF’s latest macroeconomic report attributes the growth to:

• Garment, Footwear, and Travel Goods Exports – contributing significantly to foreign exchange earnings.
• Non-Garment Manufacturing – including electronics assembly and bicycle production, diversifying the industrial base.

Construction & Real Estate Development – fueled by both local and foreign investors targeting Phnom Penh, Sihanoukville, and Siem Reap.

Real Estate at the Heart of Growth

The construction and real estate sector remains a major growth driver, supported by Ministry of Land Management, Urban Planning and Construction (MLMUPC) figures showing over $3 billion in approved construction projects in the first half of 2024 alone. Phnom Penh’s skyline continues to evolve with high-end condominiums, office towers, and mixed-use developments, attracting both domestic buyers and overseas investors from China, Singapore, and Europe.

As Cambodia’s urban population grows—projected to reach 30% of the total population by 2030, according to World Bank data—demand for quality housing, modern retail space, and Grade-A office buildings will continue to rise. This demographic shift ensures long-term rental demand and capital appreciation potential for property owners.

Policy Support for Investors

The Royal Government of Cambodia has rolled out a series of investor-friendly policies, including:

• The 2024 Law on Investment, which streamlines approval processes and offers tax incentives for qualified investment projects (QIPs).
• Continued infrastructure upgrades, such as the Phnom Penh–Sihanoukville Expressway Phase 2 and planned new international airports.
• Ongoing integration into regional trade frameworks, such as the Regional Comprehensive Economic Partnership (RCEP). 

For real estate stakeholders, these policies translate into lower operational hurdles and better access to international markets.

Why This Matters for Property Buyers and Developers

A stable and growing economy strengthens buyer confidence and underpins property value growth. For IPS Cambodia’s clients, the current conditions mean:

• Higher rental yields in central Phnom Penh, particularly in BKK1, Tonle Bassac, and Daun Penh.
• Increasing land values in urban fringes and secondary cities like Kampot and Battambang.
• Greater liquidity in the property market as more foreign investors enter. 

The ripple effect of economic growth is clear: when business confidence rises, demand for office space, industrial facilities, and residential properties follows suit.

Looking Ahead

The MEF forecasts GDP growth to accelerate further in 2025, potentially surpassing 6%, driven by sustained export performance, rising tourism numbers, and strong real estate investment inflows. While global uncertainties remain, Cambodia’s diversified economic base and policy stability offer a solid foundation for continued expansion.

For property investors and homebuyers, this is not just an encouraging macroeconomic figure—it’s a call to strategically position in a market that is maturing rapidly and rewarding early movers.

As Cambodia’s economy accelerates, opportunities for smart property investment are multiplying. At IPS Cambodia, we help investors and homebuyers secure the best real estate in a market poised for long-term growth.

Check out a selection of foreign ownership ready investments from trusted developers in Phnom Penh today:

Time Square 8, with units starting at $70,000

J Tower 3, with units starting at $330,000.

Or Get in touch directly and let us know how we can help.