2026-02-16-莱坊-Cambodia_Real_Estate_Highlights_-_H2_2025_Knight_Frank_Cambodia_19页_1mb

Cambodia Real Estate Market Summary (H2 2025)

Core Content Overview

This summary provides an analysis of the real estate market in Cambodia, focusing on economic conditions and key sectors in Phnom Penh, including office, retail, hotel, and industrial real estate. The report highlights the impact of external pressures, geopolitical tensions, and domestic macroeconomic factors on market dynamics.

Economic Snapshot

• Growth Projection: Cambodia's GDP growth is forecasted to slow to 4.8% in 2026, down from 6.0% in 2025, due to external trade uncertainties and domestic credit constraints.
• Trade Performance: Exports and imports increased by USD 10 billion in 2025, reaching USD 64.02 billion. Main exports include garments, apparel, footwear, and travel goods, with a notable increase in manufactured goods and agricultural products.
• Inflation: Inflation is expected to rise moderately to 2.52% in 2025, driven by food and fuel price increases, though still lower than the peaks of 2022.
• Currency Stability: The Khmer riel has remained stable, with an average USD-KHR exchange rate of 4008. A dollarised economy is more attractive to investors.
• Tourism Impact: International tourist arrivals dropped by 16.8% in 2025, with a significant decline in Q2 and H2 due to border tensions with Thailand. However, the opening of Techno International Airport is expected to support future tourism growth.

Key Sectors in Phnom Penh

Office Sector

• Supply: As of H2 2025, the total existing office supply reached 1,040,255 sq m (NLA), reflecting a 2% year-on-year increase.
• New Supply: During H2 2025, approximately 24,875 sq m of new office space was added, including a Grade A and two Grade B properties.
• Future Supply: The development pipeline includes 746,680 sq m of future office supply, a 38% increase from 2024.
• Ownership Types: Centrally-owned properties dominate the market at 72%, while strata-title ownership accounts for 28%.
• Grade Distribution: Grade B is the largest segment at 49%, followed by Grade C at 28% and Grade A at 23%.
• Occupancy: Overall office occupancy dropped to 58.7%, a 2.7% decrease from 2024, with prime office occupancy at 76%, down 5%.
• Rental Rates: Average office rents declined, with Grade A at $25 per sq m per month, Grade B between $10-$25, and Grade C up to $10.
• Outlook: Short-term challenges include oversupply and declining occupancy. Medium to long-term growth is anticipated due to FDI inflows and CDC projects.

Retail Sector

• Supply: Existing retail space reached 875,464 sq m in H2 2025, with a 0.6% increase compared to 2024.
• New Supply: Only one new retail development, JS Tower, was completed during H2 2025, adding 2,263 sq m of NLA.
• Future Supply: The retail pipeline totals 272,491 sq m, scheduled between 2026 and post-2028.
• Occupancy: Overall occupancy declined to 61.8%, with a 38.2% vacancy rate, representing a 2.7 percentage point increase.
• Grade Distribution: Prime retail constitutes 63% of the market, with secondary retail making up 37%.
• Rental Rates: Prime retail average rent is around $21 per sq m per month, while secondary retail is approximately $13.5.
• Outlook: Near-term supply additions are limited due to high vacancy rates and weak leasing activity. Medium to long-term prospects are positive for well-located retail assets, especially in districts with population growth and infrastructure development.

Hotel Sector

• Supply: Total hotel supply reached 16,653 rooms in H2 2025, a 4% year-on-year increase.
• New Supply: The hotel supply pipeline is projected to add 4,035 rooms, with a cumulative supply of 20,688 rooms by 2029.
• Classification: Midscale & Economy hotels make up 42% of existing supply, Upscale & Upper Midscale at 32%, and Luxury & Upper Upscale at 26%.
• Location Distribution: 84% of hotels are located in the City Centre, with Daun Penh (39%) and Chamkarmon (23%) as the most significant districts.
• Occupancy: Hotel occupancy dropped to 75%, from 77.8% in 2024, due to declining international arrivals.
• Average Room Rate (ADR): Luxury & Upper Upscale hotels had an ADR of $160-$169.
• Outlook: The hotel sector is expected to grow, driven by new supply and improved connectivity. However, challenges like border tensions and geopolitical issues remain.

Summary of Key Trends

• Office: Oversupply and declining occupancy are short-term concerns, but future developments indicate growth potential.
• Retail: Supply is overhang, with limited new projects and weak leasing activity. Prime retail remains resilient.
• Hotel: Supply is increasing, especially in the City Centre, but tourism decline affects occupancy and ADR.
• Industrial & Infrastructure: Significant growth potential, with projects like the Funan Techo Canal and Phnom Penh-Siem Reap-Poipet Expressway contributing to the country's recovery.

Investment Highlights

• FDI Inflow: Industrial and infrastructure sectors received the most FDI, with US$5.5 billion and US$3.1 billion respectively.
• New Routes: Airlines like Etihad and Turkish Airlines are expanding routes to Phnom Penh, enhancing global connectivity.
• Tourism Recovery: Expected to rebound with the expansion of flight routes and improved economic conditions.

Conclusion

The Cambodia real estate market in Phnom Penh faces short-term challenges, including economic slowdown, oversupply in office and retail, and reduced tourism. However, long-term growth is anticipated, particularly in industrial and infrastructure, supported by FDI and strategic developments. Investors are advised to approach the market with caution, considering geopolitical risks and market dynamics.