Cambodia’s construction sector is entering a powerful growth phase. With steady investments and urban expansion, the Cambodia construction industry growth trend is gaining serious momentum. Backed by large-scale infrastructure plans and foreign investor interest, the sector shows strong potential through 2028. Let’s take a closer look!
Strong Cambodia Construction Industry Growth Forecast Through 2028
In 2024, Cambodia’s construction industry is expected to grow by 5.8% in real terms. That number is forecasted to jump to 6.8% in 2025. From 2026 to 2028, annual growth could average 7.3%, supported by the government’s massive infrastructure push.
This growth is being driven by investments across industrial zones, transport systems, commercial hubs, and electricity infrastructure. In 2023 alone, total construction spending reached $9.3 billion—a clear sign of Cambodia’s ongoing commitment to development.
Infrastructure as a Growth Engine
At the heart of this expansion is Cambodia’s Transport and Logistics Master Plan. It outlines 174 priority projects, including roads, river transport, and air systems. This is not just about smoother logistics—it’s about connecting people, goods, and cities across the country.
Read Also: The Bold Cambodia Infrastructure Investments for Growth
The government has also approved a 2025 budget of over KHR39 trillion ($9.3 billion). Much of it is earmarked for infrastructure and economic diversification. This long-term planning shows a clear focus: to support sustainable growth and modernize the country’s core systems.
Cambodia Construction Industry Growth: $23 Billion in Investment Approvals
Investor confidence is high. In the first ten months of 2024, Cambodia approved 346 fixed-asset projects worth $23 billion. These span a wide range—hotels, hydroelectric dams, solar farms, ports, and even amusement parks. This level of investment marks Cambodia as a rising opportunity in Southeast Asia.
Agreements like the RCEP and Cambodia-China Free Trade Agreement (CCFTA) are also fueling foreign direct investment (FDI). Combined with tax breaks and new investment laws, Cambodia is making itself an attractive option for global developers.
Urbanization Fuels Cambodia Construction Industry Growth
As cities grow, so does the need for housing, shops, and offices. Cambodia’s urban population is expected to rise from 25.57% in 2023 to 30.6% by 2030. This urbanization trend is pushing demand for both residential and commercial developments.
The residential real estate market is projected to hit $574.10 billion by 2025, growing at a 2.85% CAGR from 2025 to 2029. Developers have a clear incentive to build smarter, faster, and larger.
Read Also: Cambodia Urbanization Impact in Construction Demand Growth
Major Urban Projects Shape Phnom Penh
Phnom Penh is undergoing a transformation. Large-scale developments are reshaping the city’s skyline and infrastructure. Key projects include:
Mekong Quay: A 210-hectare mixed-use development.
Koh Norea Development: A $2.5 billion satellite city with housing, offices, and tourism facilities.
These projects are modernizing the capital and reflecting Cambodia’s broader push toward urban integration and smart city planning.
Cambodia Construction Industry Growth is a Sector Ripe with Opportunity
The Cambodia construction industry growth story is about more than rising numbers. It’s about long-term vision, investor confidence, and massive infrastructure shifts. From budget planning to real estate growth, all signs point to sustained momentum. For developers and investors alike, Cambodia’s construction sector isn’t just expanding—it’s transforming.