How is urbanization transforming Cambodia's property market?

Cambodia has experienced significant demographic change over the past few decades, characterized by steady population growth and rapid urbanization. As of mid-2025, Cambodia’s population is estimated at approximately 17.85 million, reflecting a young and expanding demographic profile. Urbanization, currently affecting about 26.5% of the population, is a consequence of rural-to-urban migration, accompanied by industrial and infrastructure development. These trends support the country’s ambitious goals to achieve upper-middle-income status by 2030, graduate from least developed country (LDC) status by 2029, and attain high-income status by 2050. The changes are not only transforming Cambodia’s socio-economic landscape, but also creating significant opportunities, particularly in the real estate sector, where growing demand for housing, commercial space, and infrastructure is driving investment and development. Cambodia’s population growth is driven by consistently high birth rates (19.3 per 1,000), falling death rates (6.8 per 1,000), and the demographic dividend the country is enjoying from its large, young population. This growth also reflects improvements in health care, education, and living standards.

The population is expected to reach nearly 18 million by 2025, growing at an annual rate of around 1.5%, equivalent to an increase of between 210,000 and 287,000 people per year. The population structure is young, with just under one-third aged 0–14 years and a median age of 26 years. With a balanced sex ratio (0.96 males per female) and a dependency ratio of 55.9%, Cambodia is well positioned to increase productivity, benefiting from a large working-age population.

Current projections indicate that Cambodia’s population will continue to grow significantly, reaching 18.5–19 million by 2030 and exceeding 20 million by 2050. These projections are based on a number of key factors, including continued improvements in health care, maintaining economic stability, and taking into account potential shifts towards population ageing in the long term. Cambodia currently has a young and growing population, reflecting an important demographic trend. This population structure represents a powerful resource: it provides a large labour force that can drive sustainable economic growth. However, to fully realise this potential, it is necessary to actively support the development of education and skills among young people.

Urbanization in Cambodia is growing rapidly, becoming a key driver of the country’s development, especially in key urban areas such as Phnom Penh, Siem Reap and Sihanoukville. This growth is outpacing overall population growth: in 2023, about 25.6% of Cambodians (4.46 million people) lived in cities, and this figure is projected to reach 26.5% by 2025. The urban population is growing at an annual rate of about 3%, significantly higher than the national average, as people move to find work in factories, services and tourism. The main drivers are improved employment opportunities, infrastructure development, economic reforms and foreign investment, which are helping to modernize cities and raise living standards.

This steady influx of people into urban centers and the improving economic environment are having a significant positive impact on the real estate sector. An increasing number of urban residents inevitably leads to an increase in demand for housing, from affordable apartments to more luxurious properties. At the same time, the demand for commercial real estate such as office space, shopping malls and hotels is expanding, supporting the dynamic development of the urban space. Inflow of investments and modernization of infrastructure also increase the attractiveness and value of properties, creating favorable conditions for developers and investors.
Urbanization, coupled with steady population growth, significantly strengthens the real estate sector in Cambodia, acting as a powerful catalyst for demand, investment and overall economic multipliers. This dynamic process has led to a sharp increase in the need for housing and infrastructure development. The annual need for thousands of housing units for the ever-increasing number of urban migrants stimulates the construction of modern properties such as condominiums, apartments and gated communities (boreis), while simultaneously improving their quality.

In parallel, the economic diversification of the country increases the need for commercial and industrial real estate. This is reflected in the growing demand for office space, retail space and industrial zones, especially in strategic special economic zones (SEZs) such as Sihanoukville. This development not only increases property values, but also creates new jobs, which in turn increases migration to cities. Rapid urbanization also serves as a powerful magnet for foreign direct investment (FDI), primarily from Asian countries. In recent years, this investment has financed construction projects worth up to US$24 billion and has also contributed to the introduction of sustainable technologies. This not only increases the sustainability and modernity of the sector, but also positions Cambodia as an attractive regional investment hub.

The economic implications of these trends are profound. The real estate sector is a significant contributor to the Cambodian economy, with growing cities generating more jobs and stimulating business development in related industries. Improved roads, public services and public facilities, a direct result of urban development, further contribute to rising property values ​​and enhance the overall attractiveness of cities. Overall, robust population growth and increasing levels of urbanization provide strong momentum for the Cambodian real estate market. A young and dynamic workforce, ever-expanding cities and growing interest from a diversified group of investors point to significant long-term growth potential. With consistent investment in infrastructure, housing and commercial space, Cambodia is well positioned to transform its urban centers into key drivers of economic growth, innovation and improved living standards for its population.

With more young workers, larger cities and sustained investor interest, the Kingdom has a solid foundation for prosperity and can continue to grow. This can help transform existing cities into key drivers of the economy and improve living standards overall. That is why the focus now is on ensuring that this growth is well-planned, sustainable and benefits everyone. The challenge before us is to guide this development in a way that is sustainable, inclusive and beneficial to all Cambodians.