Cambodia’s construction sector has gradually begun to show positive signs, with more than 2,000 construction projects approved in the first half of 2025 — an increase of nearly one-quarter over the same period last year.
According to the Ministry of Land Management, Urban Planning and Construction, a total of 2,011 construction projects were approved between January and June 2025, a 22% increase compared to the 1,642 projects in the same period last year.
More than 70% of them were residential developments, while factory/industrial sector projects, commercial buildings and tourism-related projects made up the remainder.
The ministry noted that the total approved construction floor area reached approximately 10.37 million square metres — a 69% increase over the 6.15 million square metres approved in the same period in 2024.
Sam Soknoeun, chairman of SAM SN Group, told The Post on September 8 that after a steep decline during the peak of the Covid-19 pandemic, Cambodia’s construction sector is finally seeing a gradual recovery, especially since the beginning of 2025.
However, he noted that the rebound has not been rapid or strong; it remains slow-paced and limited to residential construction.
He explained that the most active residential projects are affordable housing developments.
“Overall, we’ve observed an increase in construction activity for housing priced under $80,000 during the first half of this year. However, high-end residential projects remain quiet, with buyers consisting mainly of those seeking a place for their own residence only. In addition to affordable housing, investment projects in special economic zones are also contributing to the construction of factories, enterprises and some warehouses,” he said.
He added that the number of factories and warehouses under construction is expected to increase in the second half of 2025 and into the following years, as the number of investment companies approved by the Council for the Development of Cambodia (CDC) continues to grow.
According to CDC data, in the first 8 months of 2025, a total of 491 investment projects were registered, amounting to a total investment capital of approximately $7.2 billion. This represents an increase of 204 projects, or around 71%, and an increase of about $2.5 billion, or 50%, in investment capital compared to the same period in 2024.
In parallel with the sector’s recovery, imports of construction materials have also increased. According to the General Department of Customs and Excise (GDCE), Cambodia imported $1.6 billion worth in the first half of 2025 — an increase of 9.8% compared to the first half of 2024. Most of them were imported from China, Vietnam or Thailand.
In 2024, the construction ministry approved a total of 3,243 construction projects, up 1.1% from 3,207 in 2023. The total construction floor area in 2024 was over 13.53 million square metres, an increase of 3%.
The Ministry of Economy and Finance forecast in August that Cambodia’s economy is expected to grow at a rate of 5.2% in 2025 and 5.0% in 2026. The construction sub-sector is predicted to continue growing at a slower pace, supported by ongoing residential developments and industrial-related construction such as factories and warehouses.
