PHNOM PENH: The Ministry of Land Management, Urban Planning, and Construction has approved 1,679 construction projects across the country totaling approximately 2.2 million square meters, representing an investment of approximately $952 million in the first five months of 2022. According to a recent publication,

According to the report, investment in the first five months of 2022 fell by about 60% compared to the same period last year, when the Ministry approved 1,879 projects totaling 5.6 million square meters and worth more than $ 2.35 billion.

Although construction investment fell in comparison to the same period last year, the overall construction sector is expected to recover by 3% in 2022 due to increased lending. The construction industry has expanded, while the Royal Government has been monitoring and implementing timely intervention policies to mitigate potential risks.

 Furthermore, due to the expected recovery of foreign investment flows for construction for tourism and trade, Cambodia’s construction sector is expected to continue to recover at 7.2 percent in 2023. This is according to Samdech Techo Hun Sen, Cambodia’s Prime Minister, in his circular on the preparation of the draft finance law for the year 2023.

Simultaneously, low- and medium-cost housing construction is expected to maintain good growth due to an increase in people’s actual demand to organize families in line with the trend of increasing domestic investment.

Real estate experts, real estate sales are beginning to pick up, and foreign investors are beginning to make inroads following the country’s opening and economic recovery. These are the factors that will lead to a recovery in the construction and real estate sectors in 2023.