The property market of Phnom Penh stabilises despite slowdown, plus more news

For PropertyGuru’s real estate news roundup, the Phnom Penh real estate market shows signs of stability and potential growth in various key segments despite a broader slowdown in construction and muted rent and sales price increases. In other news, Riyadh’s premium office space has achieved a near-full occupancy rate of 98 percent due to a wave of international companies establishing a presence in the city. Lastly, a recent survey showed that rents in seven cities across India, including Delhi, have risen by as much as 70 percent over the past six years with the major jump occurring in the last two years.

Phnom Penh’s market stabilised amid slowdown – CBRE Cambodia

The latest ‘Phnom Penh Market Insights Q3 2024 Report’ from CBRE Cambodia reveals a complex landscape in the capital’s real estate market, showing signs of stability and potential growth in various key segments despite a broader slowdown in construction and muted rent and sales price increases.

As cited in RETalk Asia, key findings from the report indicate that while new launches have declined, this may ultimately benefit investors by enhancing occupancy rates and returns. The report analyses trends across hospitality, residential, retail, and commercial real estate, alongside macroeconomic factors influencing property demand as 2024 draws to a close.

Kinkesa Kim, Managing Director of CBRE Cambodia, emphasised the significance of these trends, stating, “The reduction in residential property supply indicates an ongoing market correction. This shift, coupled with the previous oversupply, suggests that we could see increased occupancy and demand for rentals and resale properties in the near future.”

Riyadh’s 98 percent occupancy in premium offices highlights strong demand from global companies: Report

Riyadh’s premium office space has achieved a near-full occupancy rate of 98 percent due to a wave of international companies establishing a presence in the city. This influx has driven rental prices up by 19 percent year-on-year, which solidifies Saudi Arabia’s capital as a key regional business hub, as reported by Savills.

In 2024, over 120 foreign firms, including notable names like Goldman Sachs and Frost & Sullivan, have moved their regional headquarters to Riyadh, significantly increasing the demand for high-end office space, according to Savills’ Q3 market report. The technology, media, and telecommunications sectors have been particularly active, accounting for 40 percent of new leases, while consulting and consumer goods companies each represent 20 percent.

Amjad Saif, head of transactional services at Savills Middle East, indicated in Economy Middle East that the transformation of Riyadh’s office market illustrates the city’s crucial role in supporting Vision 2030. He remarked that a diverse array of sectors is being attracted to Riyadh’s business landscape, resulting in heightened demand for quality office spaces.

Rents in Delhi and 6 other cities shot up by 70 percent in six years: survey

Rents in seven cities across India, including Delhi, have risen by as much as 70 percent over the past six years with the major jump occurring in the last two years, according to recent research by property consultants ANAROCK group. The research covered 7,615 aged 24 to 78 respondents from across 14 cities.

The research highlights that 52 percent of homebuyers in Delhi-NCR prefer to buy 3BHKs and 38 percent prefer 2BHKs, according to The Indian Express report. It also showed that real estate was the most preferred asset class investment for over 59 percent of people, followed by the stock market which 31 percent of respondents preferred.

The Property Report editors wrote this article. For more information, email: [email protected].