Recovery in tourism sector drives up demand for apartments in Phnom Penh

According to a report from real estate consultancy Knight Frank, 92% of serviced apartments for rent in Phnom Penh are located in the central business district (CBD).

Knight Frank also highlighted that 56% of the total rental apartments in Phnom Penh are business class apartments.

This real estate expert institution assessed that “signs of a recovery in the tourism sector have driven the demand for hotels and rental apartment in Phnom Penh to increase.”

In order to extend the average length of stay of tourists, the Cambodian government and relevant departments are working together to enhance the tourism product by organizing festivals and events, and opening a "Riverside Walking Street" in front of the Royal Palace every weekend.

Generally, Rental apartments are an attractive option for long-term tourists. Therefore, enhancing the tourism product can drive demand for rental apartments in the medium and long term.

In addition, the entry of many international companies into Phnom Penh is a positive sign for the industry, as foreigners are the main source of demand for rental apartments.

Knight Frank's report also said that the average rent price for international class rental apartments in Phnom Penh is $20 per square meter per month, for business class apartments is $13 per square meter per month, while the rent for economy class apartments is $7 per square meter per month.