While 2021 may not have been the best year for many businesses in the Kingdom, the country’s real estate sector has something to look forward to as the Ministry of Economy and Finance (MEF) recently announced that almost 4,000 projects, amounting to over $10.35 billion USD were approved in the first 11 months of 2021.
Of the almost-4,000 project figure, 90% are classified as residential projects. Phnom Penh is Cambodia’s fastest-growing city and was the primary destination of the foreign property investors in the years leading up to 2019.
Approved projects total around 12 million square meters comprising residential, commercial, mixed-used, and industrial projects, according to the MEF.
It is worth noting that Asia-Pacific residential markets have already started heating up as buyers look to secure property at significantly more attractive prices while they still can. This trend can be seen in how Cambodia’s landed property sector is picking up steam on the back of increasing local demand for affordable and mid-range landed properties.
While the MEF did not disclose total projects approved in 2020, the value was estimated at $7.75 billion USD, a 32% decrease from 2019’s figures. Given 2021’s total construction value, this signals the first step in Cambodia’s recovery - making the question of a pre-pandemic flurry another matter of when.
Last November 2021, the Cambodian government relaxed travel requirements for foreigners entering the country. This is off the back of the Kingdom’s high vaccination rates and relatively low number of cases compared to its neighbours. The relaxation of requirements similarly extended to businesses within the country, including bars, discos and KTVs.
The ADB and the World Bank projects Cambodia’s economic reopening and simplified travel requirements will contribute to a ~5% GDP growth in 2022.