Home construction is experiencing a remarkable recovery, with purchases of construction materials from abroad increasing by nearly 50 percent compared to the same period last year.
Imports of construction materials in the first half of the year increased by 46.2 percent, and the amount of cement produced domestically to meet domestic construction needs in the first five months of 2025 also increased by around 16 percent. This is according to a new report issued by the Ministry of Economy and Finance.
The construction and real estate sectors, which are key drivers of Cambodia’s economic growth, are forecast to grow slightly by 2.4 percent.
A new report issued by the Ministry of Economy and Finance said that the growth is limited to this level due to the lack of recovery in large construction projects such as commercial buildings. However, medium-sized construction activity, especially housing and industrial construction such as factories and warehouses, is still sluggish. In addition, low-cost small-scale construction activities, especially local housing, have gradually recovered across the country.
In addition to the construction sector, the real estate sector is also estimated to grow by 2.4 percent, supported by the flow of residential purchases and sales, especially condos, driven by domestic demand, while real estate activities serving the industrial sector, such as factory and land rentals, especially in special economic zones, continue to maintain strong momentum.
Based on the situation described above, we can see that the construction and real estate sectors in Cambodia are continuing to slowly recover. After a period of decline since 2020 due to the spread of the COVID-19 virus.
So far, due to the demand for foreign investment and international markets Until then, the large-scale construction sector will remain stagnant. However, as long as Cambodia continues to receive a steady increase in foreign tourists and foreign investment, it is believed that investment in large, expensive buildings will also be able to grow again.
Overall, the real estate and construction sector in Cambodia has only grown to its current level, based solely on domestic demand, not foreign investors as before, but nevertheless, with the growth of affordable housing and industrial real estate. It will become the main point of renewed growth in the future.
