In 2025, Cambodia’s construction sector finally began to show positive signs of recovery, with more than 4,000 projects approved — an increase of nearly 30% compared to 2024 — while total investment rose by almost 50%.
The Ministry of Economy and Finance reported that the sector performed better in 2025 than in 2024, with 4,148 construction project applications approved, up from 3,243 projects in 2024, representing a 27.9% increase. The total construction floor area in 2025 reached approximately 21.59 million square metres, up 59.5%, while investment capital rose by 48.3%. Most of the approved projects were residential housing, industrial centres, commercial buildings and public facilities.
However, the number of approvals remains lower than those of previous years, 4,841 projects were granted approval in 2020, 4,303 in 2021, and 4,275 in 2022, before 2023 saw a fall to 3,207 projects.
“Key economic sectors in 2025 achieved strong growth despite ongoing geopolitical tensions, particularly investment and construction, along with positive growth in trade. This reflects the resilience of Cambodia’s economy, even amid continued global economic and geopolitical uncertainties,” claimed the report.
Sam Soknoeun, CED and founder of real estate company SAM SN Realty Co., Ltd, told The Post that after a sharp decline during the Covid-19 pandemic, the construction sector has gradually begun to recover, especially since early 2025. However, the recovery remains modest and is mainly concentrated in residential construction and factories.
He explained that the most active segment is affordable housing.
“In general, we observe increased construction activity for homes priced below $80,000. Meanwhile, higher-end housing projects remain quiet, with buyers mostly limited to those purchasing for their own residence,” he said.
“In addition to affordable housing, investment in special economic zones is also driving the construction of factories and warehouses,” he added.
According to the commerce ministry, Cambodia imported $2.6 billion worth of construction materials in 2025, an increase of 30.42% from 2024.