The New Frontier: Real Estate Investment in Cambodia – 2025.

In recent years, Cambodia has emerged from the shadows of its turbulent history and transformed into one of Southeast Asia’s most dynamic investment destinations. Among its most promising sectors is real estate—a realm once hindered by regulatory uncertainty and infrastructural challenges, now burgeoning with opportunity, especially in 2025. With a robust economic growth forecast of 5.8% for the year and ambitious government reforms in digital governance, land titling, and foreign investment facilitation, the Kingdom is making a compelling case for itself as a top regional real estate hotspot.

This transformation didn’t happen overnight. It’s the result of meticulous policy crafting, investment-friendly legal frameworks, and a growing appetite from both local and foreign investors. DFDL’s “Investment Guide to Real Estate in Cambodia – 2025” breaks down this evolution, offering insights into everything from land ownership rights to tax implications, and from zoning laws to the emergence of Real Estate Investment Trusts (REITs). Here’s the story behind Cambodia’s real estate revolution—and why now might be the best time to invest.

Cambodia’s Economic Context: Growth Amid Transition

Cambodia is ranked third in GDP growth in ASEAN for 2024, just behind Vietnam and India. Much of this momentum stems from strong public infrastructure development, a resurgence in tourism, and increasing international trade links. Its strategic location between Thailand and Vietnam—two industrial powerhouses—has cemented its status as a manufacturing and logistics hub.

Also read: What’s Next for Phnom Penh’s Airport After July?

Yet, the real power lies in the government’s ability to adapt. From launching digital land registration platforms to reforming zoning and tax laws, Cambodia is sending a clear message: it’s open for business.

Understanding Land Ownership: Who Can Own What?

At the heart of any real estate market lies one simple question: who can own land?

In Cambodia, the answer is layered. Cambodian citizens and companies with at least 51% local ownership can legally own land. Foreigners, however, face constitutional restrictions. Yet that hasn’t deterred interest. Cambodia has smartly introduced workarounds: foreign investors can acquire properties through long-term leases, trusts, and co-owned condominiums.

The 2010 Foreign Ownership Law was a turning point. It allowed foreign entities to own up to 70% of private units in co-owned buildings—provided those units are above the ground floor and the building is properly registered. This led to a boom in high-rise condominiums in Phnom Penh, Sihanoukville, and Siem Reap.

Trust structures are another viable option for foreign investors. Regulated by Cambodia’s Trust Law and managed by the Trust Regulator, these arrangements allow property to be held by a trustee for the benefit of a foreign investor. Although still in early stages of application in real estate, trusts hold significant promise.

Special Economic Zones: Industrial Land with Perks

Cambodia has embraced the Special Economic Zone (SEZ) model. With 49 SEZs nationwide (26 operational as of November 2024), these zones offer foreign investors tax holidays, import duty exemptions, and ready-to-build infrastructure.

Also read: What Happens If a Railway ​​Link Connects Cambodia Directly to China?

These zones are required to meet certain standards—minimum 50 hectares in size, anti-flooding systems, employee housing, and more. Investors can lease land or establish landholding companies with Cambodian-majority ownership to secure these plots. For those in manufacturing or export industries, SEZs provide a streamlined, incentive-rich path into the Cambodian real estate market.

Residential Real Estate: Boreys and Condominiums

Urban residential development in Cambodia has taken two primary forms: Boreys (gated communities) and condominiums.

Boreys cater to the growing middle class. These clusters of villas and townhouses often come with schools, supermarkets, and leisure facilities. They’re typically Cambodian-owned but increasingly attract hybrid ownership structures.

Condominiums, on the other hand, have become the go-to option for foreigners, thanks to the 2010 law. The Ministry of Land Management, Urban Planning, and Construction (MLMUPC) recently issued Prakas No. 050 to simplify the registration of condo units built before 1997, opening up thousands of units for legal ownership.

Also read: Is Phnom Penh Really That Expensive to Live In?

The registration process has been digitized. A QR code now appears on title certificates, allowing instant access to ownership and encumbrance details—ushering in a new era of transparency.

Zoning, Planning, and Environmental Compliance

Land zoning in Cambodia is guided by a multi-tiered system of master plans at city, provincial, and national levels. Urbanization Sub-Decree No. 42 lays down development rules, including building height, parking space, and usage restrictions.

Moreover, the Environmental Code of 2023, effective from June 2024, mandates Environmental Impact Assessments (EIAs) for specific projects. The code, spanning 12 books and 865 articles, sets the groundwork for sustainable development.

Real estate developers are now required to obtain compliance certificates, especially if the project is near protected zones like Angkor Wat (governed by the Apsara Authority). This dual system of urban planning and environmental regulation ensures development doesn’t compromise Cambodia’s cultural and ecological heritage.

Construction Law: Structured and Secure

The 2019 Construction Law and its subsequent sub-decrees have introduced rigorous standards for permits, inspections, and quality assurance. Developers must secure multiple approvals—from architectural plans to occupancy certificates. A failure to comply can result in hefty fines or even shutdowns.

For developers, the legal framework is demanding but fair. It ensures buildings meet safety and environmental standards, reassuring investors and end-buyers alike.

Real Estate Development Licensing: A New Regulatory Landscape

In March 2023, the government introduced Sub-Decree 50, creating three categories of real estate development licenses: housing, co-owned buildings, and land-lot development. Licenses are further divided into two types depending on whether the project is pre-built or under construction.

Also read: What are the best businesses to start in Cambodia?

Developers must meet capital requirements (ranging from 20% to 100% of construction costs), deposit business guarantees, and open developer accounts to manage buyer deposits. These rules aim to protect buyers from fraud and ensure financial accountability.

The regulator behind this reform is the Real Estate Business & Pawnshop Regulator (RPR) under the Non-Bank Financial Services Authority (FSA). With over 573 developers licensed as of late 2024, this system adds much-needed structure to what was once an opaque sector.

Real Estate Services Licensing: Regulation Meets Professionalism

Beyond developers, real estate agents and valuation professionals must now be licensed under Prakas 064. Individuals and firms are required to hold certificates and licenses issued by the RPR, renewable annually.

Unlicensed activity invites severe penalties—fines of up to USD 125,000 or forced business closures. Cambodia’s move toward licensing elevates industry standards, fosters consumer trust, and aligns with international norms.

Taxes: What You Need to Know

Taxes in Cambodian real estate are nuanced but navigable. Here are the key levies:

• Transfer Tax: 4% on market value (or higher value between the sale price and government-determined benchmark).
• Tax on Immovable Property (TIM): 0.1% on property exceeding KHR 100 million (approx. USD 25,000).
• Tax on Unused Land (TUL): Applied to vacant land in urban zones.
• Rental Tax: 10% on gross rental income.
• Capital Gains Tax: 20% effective in 2024.

Foreigners and locals alike are advised to seek professional tax advice and factor these costs into ROI calculations. While the tax burden is moderate, compliance is crucial to avoid penalties.

Real Estate Finance and REITs: Capitalizing Growth

Cambodia’s finance sector has been slow to adopt REITs (Real Estate Investment Trusts), but the framework is now in place. With proper structuring, REITs can enable pooled investment into income-generating properties—ideal for institutional and retail investors seeking exposure with less risk.

Also read: How to start stock trading in Cambodia?

In terms of traditional financing, banks in Cambodia offer property-backed loans. Long-term leases and perpetual leases can also be used as collateral, provided they’re registered with the land office.

Digital Transformation: A Game Changer

One of the most notable shifts in 2025 is Cambodia’s aggressive digitization of public services. The MLMUPC launched online cadastral services, allowing applications for title registration, land transfers, pledges, hypothecs, and more—all through a central portal.

This has cut bureaucratic delays, enhanced transparency, and enabled remote investment management. For investors, particularly from overseas, this means faster transactions and lower administrative overhead.

The Verdict: Why Cambodia, Why Now?

Cambodia’s real estate market in 2025 is a convergence of favorable factors—robust economic growth, legal reforms, digital transformation, and an open stance toward foreign participation. While challenges remain, particularly in regulatory enforcement and environmental sustainability, the overall trajectory is positive.

For investors—be they developers, fund managers, or individual buyers—Cambodia offers a rare mix: frontier market growth with an increasingly sophisticated legal and financial infrastructure. In the heart of Southeast Asia, a new real estate story is being written. The only question is: will you be a part of it?

Read the full report here: Investment Guide to Real Estate in Cambodia – 2025

Why Takeo, Kampong Speu, Kampong Chhnang, and Pursat Are Emerging as Cambodia’s New Industrial Hubs? A Full Story!

In recent years, Cambodia has been undergoing a quiet but transformative industrial shift. While Phnom Penh and Sihanoukville have traditionally been magnets for foreign direct investment, the tides are now changing. Four provinces—Takeo, Kampong Speu, Kampong Chhnang, and Pursat—are becoming Cambodia’s next potential industrial hubs. This story traces the socio-economic, geographical, infrastructural, and political factors driving this transformation, offering a complete look into why these regions are poised for industrial expansion and economic opportunity.

From Peripheral to Prominent: A New Industrial Era

It wasn’t long ago that these four provinces were considered peripheral to Cambodia’s economic engine. However, over the past decade, and especially under the current administration of Prime Minister Hun Manet, strategic infrastructure development, improved access to utilities, and government policy reforms have turned them into hotspots for industrial investment.

In a speech delivered during the inauguration of Hun Sen Pramoay High School in Veal Veng district, Pursat, Prime Minister Hun Manet declared that Kampong Chhnang and Pursat are fast emerging as Cambodia’s next major industrial hubs, following in the footsteps of Kampong Speu.

Let’s dive into what makes each of these four provinces—Takeo, Kampong Speu, Kampong Chhnang, and Pursat—so special.

1. Kampong Speu Province: The Gateway Between Phnom Penh and Sihanoukville

Kampong Speu’s transformation began earlier than the other three provinces. Strategically nestled between Phnom Penh and the coastal economic zone of Sihanoukville, Kampong Speu has been the preferred destination for industries seeking to benefit from proximity to both export ports and the capital’s workforce.

Also read: How Will the Phnom Penh–Siem Reap–Poipet Expressway Boost Local and Regional Business?

Key Factors Behind Kampong Speu’s Rise

• Geography: Located just an hour from Phnom Penh and a few hours from Sihanoukville, the province acts as a natural industrial corridor.
• Infrastructure: National Road 4, one of the country’s most vital economic highways, cuts through Kampong Speu.
• Industrial Zones: The province already hosts several special economic zones (SEZs) and garment factories.
• Rising Land Costs in Phnom Penh: As land prices in the capital skyrocketed, Kampong Speu became a natural alternative for investors.

Today, land prices in Kampong Speu are beginning to rise, pushing new investors further out into other provinces—like Kampong Chhnang and Pursat—triggering a new wave of industrial decentralization.

2. Kampong Chhnang Province: The Logistics Jewel of Central Cambodia

Once overlooked by travelers heading from Phnom Penh to Battambang, Kampong Chhnang is now on investors’ radar for its logistics potential. Located only 90 kilometers from Phnom Penh, this central province is accessible, affordable, and growing rapidly.

The Logistics Advantage

According to socio-economic researcher Chey Tech, “Kampong Chhnang is ideal for logistics and industrial operations due to its location. It connects easily to major cities and ports.” This accessibility is further enhanced by the expanding rail network and the National Road 5, a 400-kilometer arterial highway that now serves as a backbone for northern and western trade routes.

Also read: What Happens If a Railway ​​Link Connects Cambodia Directly to China?

Industrial Workforce and Demand

The Premier recently revealed that Kampong Chhnang already has factories requiring around 60,000 workers, with a shortage of 20,000—a clear indication of its fast-growing industrial sector.

As factories seek cheaper land and better logistics, Kampong Chhnang has emerged as a natural successor to Kampong Speu, attracting both domestic and international investors.

3. Pursat Province: The “Battery of Cambodia” Becomes an Economic Powerhouse

Pursat has long been recognized for its hydropower capacity, which supplies a significant portion of Cambodia’s electricity needs. This energy reliability makes the province uniquely attractive for energy-intensive industries.

Infrastructure and Connectivity

Pursat’s growth is largely driven by National Road 10 (NR10) and its connectivity with other northwestern provinces, such as Battambang, Pailin, and even Koh Kong. The NR10, together with Cambodia’s expanding rail system, links Pursat with major economic centers and border crossings.

According to Prime Minister Hun Manet, “The interconnected infrastructure will facilitate trade and business, ultimately improving the livelihoods of our people.”

Industrial Pioneers in Pursat

Major international companies such as Ford and Minebea have already established operations in Pursat, demonstrating investor confidence in the province’s potential. The district of Veal Veng, once a battlefield, now symbolizes post-war recovery and economic transformation, with the population growing from 500 families in 1999 to nearly 10,000 today.

This success story is a direct result of the “win-win policy” initiated by former Prime Minister Hun Sen, which ended civil conflict and laid the foundation for stable economic growth.

4. Takeo​ Province: The Southern Powerhouse with Untapped Potential

Though less frequently spotlighted, Takeo province is emerging as an industrially strategic region thanks to its proximity to Vietnam, robust agricultural base, and increasing connectivity.

The Funan Techo Canal and the New Phnom Penh International Airport are two transformative infrastructure projects that significantly boost Takeo province’s rise as an industrial development hub in Cambodia. The Funan Techo Canal, passing through Kandal, Takeo and Kampot, is set to revolutionize inland waterway logistics by linking Phnom Penh to the Gulf of Thailand, dramatically lowering transportation costs and enhancing trade efficiency. Meanwhile, the New Phnom Penh International Airport, straddling Kandal province and close to Takeo, will serve as a major gateway for cargo and international connectivity. Together, these developments position Takeo as a vital corridor for industrial and logistical expansion, offering investors seamless access to domestic and regional markets. This growing connectivity not only enhances Takeo’s appeal but also supports the broader vision of decentralizing Cambodia’s industrial growth beyond Phnom Penh, aligning with the national strategy of creating multiple regional industrial zones including Kampong Speu, Kampong Chhnang, and Pursat.

Also read: What’s Next for Phnom Penh’s Airport After July?

Strategic Border Position

Takeo’s border with Vietnam’s An Giang province makes it a prime location for cross-border trade and light manufacturing, especially for products destined for export.

The Phnom Den International Border Gate has become a key node in trade between Cambodia and Vietnam. With ASEAN-wide trade policies reducing tariffs and promoting intra-regional commerce, Takeo’s importance is growing.

Agricultural and Agro-Industrial Synergies

Takeo is known for its rice production and other agricultural products. With Cambodia increasingly moving toward agro-industrial processing, the province offers opportunities for setting up processing plants, packaging units, and storage facilities. This makes it ideal for agribusiness investors.

Additionally, the province benefits from infrastructure upgrades, such as the improved NR2 highway and new rural roads connecting it more efficiently to Phnom Penh and other economic hubs.

Also read: What If Pochentong Airport Became a Public Space?

Why These Four Provinces—And Why Now?

Cambodia is no longer just about Phnom Penh or Sihanoukville. The country’s economic strategy is shifting toward decentralization, leveraging regional strengths to boost inclusive development. Here’s a synthesis of why these four provinces are becoming ideal industrial hubs now:

1. Strategic Infrastructure Investments

The Cambodian government has prioritized strategic infrastructure development to enhance trade connectivity:

• National Roads 4, 5, 10, and 2
• Expanded railways
• Border crossings with Thailand and Vietnam

These make logistics more cost-efficient and predictable, a key factor in industrial site selection.

2. Rising Land Costs in Traditional Hubs

Phnom Penh and Kampong Speu are experiencing soaring land and labor costs. Investors are looking for cost-effective alternatives, and these four provinces offer ample land at competitive prices.

3. Government Support and Policy Direction

Under Hun Manet’s leadership, there is a clear political push to promote regional development. This includes:

• Tax incentives for investing in SEZs
• Industrial policy reforms
• Cross-border cooperation

4. Natural Resources and Energy Availability

Pursat offers hydropower. Takeo has agricultural abundance. Kampong Chhnang provides logistical centrality. Kampong Speu bridges trade from coast to capital. These varied advantages allow for sectoral diversification, from manufacturing to agribusiness and logistics.

5. Labor Force Accessibility

Each of these provinces offers access to a young and trainable labor force, many of whom would otherwise have migrated to Phnom Penh or Thailand. Developing local industry helps retain talent and reduce urban congestion.

A Vision of Cambodia’s Decentralized Economic Future

The rise of Takeo, Kampong Speu, Kampong Chhnang, and Pursat is more than just a shift in investor attention—it’s a vision of inclusive, regionally balanced growth. These four provinces are building on their unique strengths while benefiting from improved national connectivity and supportive government policies.

This evolving story of industrial decentralization presents a powerful opportunity: to bring prosperity beyond Phnom Penh, to create jobs in rural and semi-urban areas, and to build a resilient, diversified Cambodian economy.

Final Thoughts: A Golden Era for Cambodia’s Provinces

The transformation of Cambodia’s industrial landscape is no longer speculative—it’s underway. Investors, policy-makers, and entrepreneurs are turning their eyes toward Takeo, Kampong Speu, Kampong Chhnang, and Pursat not just as alternatives, but as the future engines of Cambodia’s growth.

These provinces, once bypassed or underdeveloped, are stepping into a golden era marked by connectivity, competitiveness, and confidence.

What Do You Think?

Do you agree that Cambodia’s provinces are ready to lead the next wave of industrial development? Have you seen changes in these regions firsthand?
Share your thoughts in the comments below.