Phnom Penh Real Estate – Market Overview, Prices & Investment Opportunities 2025

Phnom Penh 2025: Real Estate Market, Prices, ROI & Best Locations

Phnom Penh, Cambodia's capital, is one of the fastest-growing real estate markets in Southeast Asia. After years of dynamic growth, the city is solidifying its position as the region's financial, commercial, and investment hub.

In 2025, Phnom Penh real estate is experiencing average annual growth of 6–9%, with attractive rental yields (ROI 8–11%). According to the CBRE Cambodia 2025 Outlook report, the capital maintains its position among the region's most stable markets, with strong demand in both residential and office segments.

Market Characteristics

• Apartments and condominiums – the most popular choice among foreign investors.
• Villas and link houses – particularly popular among local residents.
• Investment and commercial land – rapidly rising prices in central districts.

Foreign ownership law: foreigners can purchase condominium units (freehold), but not land – similar to regulations in Thailand and Vietnam.

Phnom Penh Real Estate Prices 2025

Property Type	Location	Price per m² (USD)	ROI	YoY Trend
Condo (standard)	Toul Kork / Sen Sok	1,500–2,000	8%	+6%
Condo (premium)	BKK1 / Tonle Bassac	2,500–3,500	9–10%	+8%
Villa / townhouse	Borey Peng Hout / Chip Mong Land	350,000–600,000 (total price)	7–8%	+7%
Investment land	Chamkarmon / Daun Penh	1,200–2,500 / m²	—	+9%

The highest prices are found in BKK1, Tonle Bassac, and Chamkarmon districts – the city's business and diplomatic center.

Best Districts for Investment

1) BKK1 – Luxury & Prestige

Premium central district with embassies, hotels, and office buildings. Stable rental income and high-quality developments.

ROI: 9–10%  |  Price: $2,500–3,500/m²

2) Tonle Bassac – Modern Downtown

Home to developments like The Bridge, The Peak, and Morgan Tower; shopping centers and apartments with Mekong River views.

ROI: 8–9%  |  Price: $2,000–3,000/m²

3) Toul Kork – Middle-Class Hub

Residential district with growing demand for mid-range condos; strong long-term rental market.

ROI: 8%  |  Price: $1,500–2,000/m²

4) Chroy Changvar – Riverside Living

Modern developments with Tonle Sap River views (including The Peninsula, La Vista One).

ROI: 9–10%  |  Price: $1,800–2,300/m²

5) Sen Sok – Northern Growth

Dynamic commercial development (Borey Peng Hout), moderate land prices with rapid appreciation.

ROI: 7–8%  |  Price: $1,200–1,800/m²

Why Invest in Phnom Penh

• Strong economy – projected GDP growth of 5.8% (2025).
• High rental yields – 8–11%, among the highest in Asia.
• No capital gains tax on property sales.
• USD transactions – stable currency, simplified accounting.
• Growing local demand – expanding middle class and ASEAN workforce influx.

2025–2026 Forecast

CBRE Cambodia predicts annual price growth of 7–9%. Growth drivers include: infrastructure investments (roads, light rail), mixed-use projects in Tonle Bassac and BKK1, and rising demand for premium condos and Grade A offices. The most stable ROI will remain in mid-range and premium condominiums (8–10%).

Risks & Recommendations (Varsovia Estate)

Summary

Phnom Penh offers one of the highest investment returns in the region. It's a stable, developing market that welcomes foreign investors. In 2025, premium apartments and land in central locations remain particularly attractive.

With Varsovia Estate, you can safely invest in Phnom Penh – from market analysis and legal support to property management.

FAQ

Can foreigners buy property in Phnom Penh?
Yes, condominium units (freehold); land ownership is not available to foreigners.

What ROI does the Phnom Penh market offer?
Average 8–11% depending on location and property standard.

What currency are transactions conducted in?
US dollars (USD).

Does Varsovia Estate operate in Phnom Penh?
Yes, we offer comprehensive support for investors in Cambodia.