Construction & Real Estate Sectors Expected to Continue Growth in 2023

• 18 June 2022
• Local News
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The construction and real estate sectors are expected to continue to recover in 2023 due to the influx of foreign investment and the demand for low- and medium-cost housing.

In the draft law on financial management for 2023, signed by Samdech Techo Hun Sen, Cambodian Prime Minister of Cambodia on 08 June, the government stated that the construction sector is predicted to continue to recover by 7.2% in 2023 due to the inflow of foreign investment in construction for tourism and trade activities, read the draft.

The low and medium housing price construction is expected to maintain good growth due to the increase in the demand of the people to organise families in line with the trend of increasing domestic investment.

The real estate sector is predicted to continue to recover at 5.2% in 2023 due to expectations of a recovery in high-end real estate buy-sell activity, including condominiums and apartments, read the draft, citing that the demand for low- and medium-cost residential real estate is expected to maintain strong growth.

However, the continued strong growth of lending to the domestic construction sector is a risk for the construction sector and the financial sector as a whole, the draft underlined.

“The real estate sector still faces high risks similar to the construction sector, as the real estate sector is highly related with the financial sector, both inside and outside the banking system (loans provided by developers),” the draft stated.

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