Office and Commercial Properties in Phnom Penh – Market, Prices & Investment Outlook 2025

Phnom Penh 2025 – Office and Commercial Real Estate Market: Prices, ROI, Prime Locations

Phnom Penh, Cambodia's capital, is now the country's most important financial and economic hub, attracting an increasing number of international companies, startups, and investors. Thanks to robust economic growth (GDP approximately +5.8% in 2025, according to the World Bank) and political stability, the office and commercial property market is developing at an impressive pace.

In this guide, we examine the state of the market in 2025: property types, rates and prices, expected ROI, top districts, and prospects for the coming years.

1. Phnom Penh – A Modern Business Hub

Over the past five years, the capital has undergone dynamic transformation into a regional hub where companies such as Huawei, Prudential, Toyota, along with dozens of fintechs and startups, have established offices.

• ✅ Foreign company growth of approximately 40% (2020–2025)
• ✅ Strong capital inflow into financial and real estate sectors
• ✅ Infrastructure development (Phnom Penh–Sihanoukville expressway, new Techo Takhmao airport)
• ✅ Rising demand for Grade A spaces and flexible offices

2. Types of Commercial Properties and Price Ranges

💡 Exchange rate reference: 1 USD = 4.3 PLN

Property Type	Description	ROI	Price per sqm (USD)	Price per sqm (PLN)
Grade A Offices	Modern office towers in the CBD (BKK1, Tonle Bassac)	8–9%	3,000–4,000	12,900–17,200
Grade B Offices	Smaller offices in expat zones	9–10% ✅	1,800–2,800	7,700–12,000
Retail Spaces	Ground floor units, galleries, cafés	10–12% ✅	2,000–3,500	8,600–15,000
Mixed-Use	Office-retail with residential	8–10%	2,500–3,800	10,800–16,400

3. Best Districts for Commercial Investors

BKK1 – Business and Luxury Center

Office Prices: 3,000–4,200 USD/sqm (12,900–18,100 PLN) • Rental Rates: 25–40 USD/sqm/month • ROI: 8–9%
Demand: Corporates, finance, consulting.
Examples: Vattanac Capital Tower, Embassy Central, The Peak Office Tower.

Tonle Bassac – Modern Office-Retail Zone

Office Prices: 2,500–3,500 USD/sqm (10,800–15,000 PLN) • ROI: 9–10%
Demand Profile: Tech companies, coworking spaces, premium dining.
Examples: The Bridge, Urban Village Business Hub.

Chroy Changvar – Expansion Corridor and Government Projects

Prices: 1,800–2,800 USD/sqm (7,700–12,000 PLN) • ROI: 10–12% ✅
Advantages: New bridges and roads, rapid commercial development.
Examples: Morgan Tower, Peninsula Commercial Center.

4. Office Market Trends 2025

• Flexible leasing formats (coworking, serviced offices) gaining market share.
• Regional operational centers relocating to Phnom Penh.
• Growing demand for retail spaces in ground floors of new condominiums.
• More long-term leases (3–5 years), narrowing rental gap between Grade A and B.

5. Rental Rates and Expected ROI

Type	Annual ROI	Average Rent (USD/sqm/month)	Average Rent (PLN/sqm/month)
Grade A Office	8–9%	35–40	150–170
Grade B Office	9–10%	25–30	110–130
Retail Space	10–12% ✅	40–60	170–260
Coworking / Flex	8–11%	Occupancy-dependent	—

💡 Highest returns are generated by retail spaces along BKK1 main arteries and in new mixed-use projects (office + retail).

6. Taxes and Formalities (Commercial)

Item	Rate	Example Value in PLN
Transfer Tax	4%	approx. 17,200 PLN / 100,000 USD
Company Registration	500–800 USD	2,150–3,440 PLN
Annual Property Tax	0.1% of value	approx. 430 PLN / 100,000 USD
Rental Income Tax (companies)	10%	on rental income

7. What's Next? – "Smart Business City" and Future Prospects

In 2025, the government is implementing the Phnom Penh Smart Business City initiative supported by ADB. The program includes infrastructure modernization, tax incentives for investors, SME and coworking support, and registry digitalization. As a result, Phnom Penh is strengthening its position as the business center of Indochina, genuinely competing with Bangkok and Ho Chi Minh City.

Summary

The office and commercial property market in Phnom Penh (2025) offers high profitability – up to 12% ROI, regulatory stability, and growing demand from both Asian and Western companies. Compared to Thailand or Vietnam, it still stands out with lower entry costs – making it an attractive alternative for international investors seeking ASEAN exposure.

FAQ

Can foreigners invest in offices and commercial properties in Phnom Penh?
Yes – through a Cambodian company or by purchasing units in strata title buildings.

What ROI can be achieved from commercial property rental?
Average 9–12% annually, depending on location and property type.

Which districts are most profitable?
BKK1, Tonle Bassac, and Chroy Changvar – high demand and best rental dynamics.

Does Varsovia Estate assist with commercial property purchases?
Yes – we provide profitability analysis, due diligence, and full transaction support in Polish.

About Varsovia Estate

Varsovia Estate is a Polish agency specializing in premium real estate in Thailand and Cambodia. We assist investors in analysis, acquisition, and property management in Southeast Asia. We combine European service standards with local knowledge and experience. Our goal is to provide clients with maximum security and investment profitability.