Cambodia's property market is a dollarised, foreigner-friendly market built around Phnom Penh condominiums and a few coastal towns. The headline numbers look decent, but affordability and oversupply deserve attention. This page uses our own indicator database to frame the Cambodia real estate market 2026; for current stock, see property in Cambodia.
Yields and price levels
Our latest yield indicator shows a gross rental yield of about 4.8% in the city centre in 2023 (4.9% in 2022). The price-to-rent ratio was 20.9 in 2023, which is typical of an urban market where buyers accept modest income for capital growth and a dollar-denominated asset.
The price-to-income ratio was 32.5 in both 2022 and 2023. That is very high, and it tells you that local salaried households cannot afford most new condominiums. Demand therefore comes from wealthy Cambodians, overseas Chinese and other Asian buyers, and expats. We do not have a reliable per-square-metre survey for the country, so use live asking prices from cheap property in Cambodia or the under $100k list to anchor your expectations.
| Indicator | Value | Year |
|---|---|---|
| Gross rental yield, city centre | 4.8% | 2023 |
| Price-to-rent ratio, city centre | 20.9 | 2023 |
| Price-to-income ratio | 32.5 | 2023 |
What drives the economy
Cambodia's GDP was about $51.3 billion in 2025, growing 5.3% after 6.0% in 2024, with GDP per capita near $2,872. Population is about 17.8 million, growing about 1.2% a year, and roughly 41% of people are urban. Garments, tourism, construction and agriculture carry the economy.
Inflation was low at 2.4% in 2025 (0.8% in 2024), and government debt was about 26% of GDP in 2024. Because the US dollar circulates widely, currency risk for dollar-based buyers is lower than in most emerging markets. The flip side is that Cambodia cannot cut rates to cushion a property slowdown the way an independent central bank would.
For the tax backdrop, the headline corporate and personal income tax rates are both 20% and VAT is 10% (2026 values in our database). Property-specific taxes and foreign-ownership limits are covered in the Cambodia buying guide.
Read more (3 more sections)Show less
Foreign ownership and structure
Foreigners cannot own land outright, but they can own strata-titled condominium units above the ground floor, subject to a cap of 70% of the units in any building. Land can be held through long leases or Cambodian-owned companies, which adds legal complexity.
- Choose buildings with hard (strata) titles registered through the cadastral authority, not soft titles.
- Confirm the developer's licence and construction progress before paying instalments.
- Understand that leasehold and nominee arrangements carry greater risk than strata ownership.
The rules are well established, but details change, so confirm with a local lawyer. Financing is a further hurdle; see mortgage options in Cambodia.
In Cambodia the title type matters more than the view: strata title or walk away.
Risks and weak points
Cambodia's property cycle has already tested investors. Several large condominium and mixed-use projects launched in Phnom Penh around the late 2010s, and parts of the market have since faced oversupply, slower sales and stalled schemes.
- Oversupply and slow resale. High price-to-income means a small buyer pool for new stock.
- Governance. The Corruption Perceptions Index score was 22 out of 100 in 2024, so documentation and escrow practices should be independently verified.
- Concentration. Most liquid stock sits in Phnom Penh and Sihanoukville-area projects, with tourism and construction exposed to Chinese demand.
- Financing. Local mortgages for non-residents are limited and costly, so many buyers pay cash or use developer instalments.
Another data caution: our quality-of-life and safety survey indices for Cambodia date from 2015, so we do not rely on them here.
Outlook
With growth above 5%, low inflation and a dollarised currency, the macro backdrop is supportive. A 4.8% gross yield is acceptable but does not leave much room for fees, vacancy and furnishing. Buyers should favour completed buildings from established developers, near services, with realistic exit assumptions.
Use the mortgage calculator to test cash flow, and cross-check against other markets in our analysis hub.
Last updated 8 October 2026