Residential Real Estate Leases - Cambodia

In Cambodia, the Residential Real Estate Leases market market is expected to witness significant growth in the coming years.
By 2024, the projected revenue of this market segment is estimated to reach US$7.07bn.
Among the various categories within this market, House Leases dominate with a projected market volume of US$6.63bn in 2024.
This indicates the strong demand for residential properties in the country.
Looking ahead, the market is expected to continue its growth trajectory.
With an annual growth rate (CAGR 2024-2029) of 6.30%, the revenue is projected to reach US$9.60bn by 2029.
This indicates the positive outlook for the residential real estate leasing market in Cambodia, driven by factors such as urbanization, population growth, and increasing disposable income.
The residential real estate leasing market in Cambodia is experiencing a surge in demand due to increasing foreign investments in the country's property sector.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Cambodia is experiencing significant growth and development.

Customer preferences: Customers in Cambodia are increasingly opting for residential real estate leases due to several factors. Firstly, there is a growing trend towards urbanization, with more people moving from rural areas to cities in search of better job opportunities and a higher standard of living. This has led to an increase in demand for rental properties in urban areas. Additionally, young professionals and expatriates are also choosing to lease properties rather than purchase them, as it offers them flexibility and the ability to move around more easily.

Trends in the market: One of the key trends in the residential real estate leases market in Cambodia is the rise of serviced apartments. These are fully furnished apartments that come with amenities such as housekeeping, maintenance, and security services. Serviced apartments are particularly popular among expatriates and business travelers who are looking for a hassle-free living experience. The demand for serviced apartments is expected to continue growing in the coming years. Another trend in the market is the increasing popularity of co-living spaces. These are shared living spaces where individuals rent a room within a larger apartment or house and share common areas such as the kitchen and living room. Co-living spaces are gaining traction among young professionals and students who are looking for affordable housing options and a sense of community.

Local special circumstances: Cambodia has seen rapid economic growth in recent years, which has led to an increase in disposable incomes and a growing middle class. This has resulted in a higher demand for residential real estate leases, as more people are able to afford rental properties. Additionally, Cambodia has a young population, with a large percentage of the population below the age of 30. Younger individuals are more likely to opt for rental properties as they may not have the financial means to purchase a home.

Underlying macroeconomic factors: The growth of the residential real estate leases market in Cambodia can be attributed to several macroeconomic factors. The country has experienced stable economic growth, which has resulted in increased employment opportunities and higher incomes. This has led to a rise in consumer spending, including spending on housing. Additionally, the government has implemented policies to attract foreign investment, which has contributed to the growth of the real estate sector. The construction of new residential properties has also been supported by the availability of financing options from both local and international banks. In conclusion, the Residential Real Estate Leases market in Cambodia is witnessing significant growth and development due to customer preferences for flexibility, urbanization, and the rise of the middle class. The market is characterized by trends such as the popularity of serviced apartments and co-living spaces. These trends are supported by local special circumstances such as rapid economic growth and a young population. Overall, the market is driven by underlying macroeconomic factors such as stable economic growth and government policies to attract foreign investment.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Cambodia

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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