Cambodia Real Estate Market Outlook

24 April 2019
Market Outlook 2019

Cambodia’s strong economic growth to continue amidst challenges to regional competitiveness.

Cambodia’s economy maintained its robust performance across 2018 and is projected to remain one of the fastest growing economies with an estimated growth rate of 6.8% in 2019, according to the World Bank. The industry and service sectors will remain the key driving forces behind the economy.

Macro-economic stability, favourable inflation rates and stable exchange rates have played a crucial role in creating an investment-friendly environment within Cambodia over the past decade. Looking forward into 2019, inflation rates are expected to fluctuate around 2.5% as projected by the National Bank of Cambodia while the exchange rate is set to remain at approximately 4,050 Riels to the US Dollar.
In 2019, Cambodia’s industrial sector is predicted to grow by 10.2%, principally supported by manufacturing and construction. Nevertheless, the country’s largest manufacturing industry, garments and footwear, is facing a number of challenges including rising labour costs and the risk of losing access to the “Everything-But-Arms”

(EBA) preferential trade initiative which provides tariff free access to EU markets, a major destination for Cambodian made goods.
Construction, on the other hand, is expected to maintain its strong growth. According to the Ministry of Economy and Finance, the growth rate in Cambodia’s construction sector in 2018 was 18.1%.