The construction sector achieved remarkable growth last year with constructed area and investment showing a positive growth.
The Ministry of Land Management, Urban Planning and Construction issued construction permits to 3,207 projects in 2023, a year-on-year decrease of 25 percent or 1,068 projects down from 4,275 projects approved in 2022, according to a Socio-Development Trend Report from the Ministry of Economy and Finance (MEF).
Investment capital and construction space, however, surged by 80 percent and 84 percent, respectively, according to MEF’s report obtained by Khmer Times yesterday.
Construction investment rose by 84 percent year-on-year to $5.4 billion, while construction space increased to 13.31 million square metres, a year-on-year increase of 80 percent, read the report.
Among the projects, 2,700 are housing projects, including 2,606 borey projects and 94 condominium projects.
Besides, there are 190 industrial construction projects, 198 commercial projects, 55 tourism projects, three investment projects and 61 public construction projects.
MEF stated that in 2023, the construction sector marked good progress in both construction space and investment over 2022.
“The positive impact of the increase in private investment has made the construction sector achieve better growth, especially in construction projects compared to 2022,” the ministry said.
Some areas of the real estate market will make progress this year too with an increase in domestic demand for affordable housing while luxury construction for non-residents, including condominiums, is expected to remain weak, according to the Macroeconomic and Banking Sector Outlook released by the National Bank of Cambodia in February. In 2024, the construction and real estate sector in Cambodia is projected to grow, albeit slowly according to the report. The sector will be supported by integrated public infrastructure development projects as was the case in 2023. khmertimeskh
