Growth in Cambodia’s construction and real estate sectors is below 1 percent as foreign direct investment flows to the construction sector continue to decline.
The first-half report and second-half outlook for 2025 issued by the National Bank of Cambodia said that Cambodia’s construction sector will continue to grow at a low rate of only 0.7 percent, while the real estate sector will grow at a rate of 0.8 percent.
The construction sector’s low growth is due to the continued decline in foreign direct investment flows to the construction sector, reaching a negative 14 percent. As for the real estate sector, it has such low growth due to the decline in prices and the size of housing loans, while foreign direct investment in this sector has declined.
The same source added that the housing price index decreased by an average of negative 3.6 percent, with Phnom Penh being negative 3.6 percent and the provinces being negative 7.1 percent.
In such a situation, those who follow the development of the construction sector A real estate developer said that the construction and real estate sectors may continue to decline until the end of the year. But what he saw as a positive outlook is that imports of construction materials have increased significantly, while banking institutions, especially some commercial banks, have also made efforts to adjust housing loans by adjusting interest rates to lower, namely below 7 percent per year.
The follower added that looking at the figures the Ministry of Commerce showed, imports of construction materials in the first half of the year were worth nearly $1.241 million, an increase of 35.6 percent. And steel imports have also increased significantly, reaching more than $587 million, an increase of 52.58 percent.
More importantly, Cambodia’s investment attraction process has also improved, with the Cambodia Investment Council reporting that Cambodia has received a total of 373 foreign investment projects with a total value of $5.8 billion, an increase of 77 percent.
Based on this positive situation, the same real estate watcher continued that these investment projects All of them support the construction and real estate sectors in 2025.
The same source stated that “no company has come to invest without needing to build or need a building to operate a factory or run their business.”
