Cambodia’s infrastructure development is reaching a new milestone with the Techo International Airport (TIA), a $1.339 billion mega-project that is now 92% complete as of December 2024. This new airport, which is scheduled for a formal inauguration in July 2025, is expected to completely transform Cambodia's aviation industry and have a big impact on both air travel and the local real estate market in and around Phnom Penh.
(Rendered image of the new Techo International Airport)
Located 19 kilometers south of Phnom Penh in Kandal province, TIA spans 2,600 hectares and is being developed in three phases:
- Phase 1 (2025) – A 4-kilometer runway capable of handling Code 4F aircraft (e.g., Airbus A380, Boeing 747-8), with a passenger capacity of 15 million annually.
- Phase 2 (2040) – Expansion to 30 million passengers per year, improving connectivity and operational efficiency.
- Phase 3 (2050) – Full completion, boosting capacity to 45 million passengers annually, placing Cambodia among the region’s key air transport hubs.
Once fully operational, TIA is expected to replace Phnom Penh International Airport (PNH) as the country’s primary gateway for international travelers.
How TIA Will Impact Cambodia’s Real Estate Market
With the completion of TIA, Cambodia’s real estate sector is poised for transformative growth, particularly in Kandal province and southern Phnom Penh.
(Techo International Airport construction update)
The new airport’s location in Kandal will drive real estate appreciation, especially in Takhmao, Sa’ang, and Kien Svay. As history has shown in other cities worldwide, major airport projects tend to boost property values in surrounding areas. Key factors contributing to this growth include the increasing demand for residential and commercial developments near the airport, the rising investment opportunities to support the construction of infrastructure like highways, rail links, and commercial hubs, and how the logistics and industrial zones will benefit from enhanced connectivity.
Property developers have already started acquiring land in the vicinity, anticipating the airport’s economic impact. Real estate developers have already begun purchasing land nearby in anticipation of the airport's economic impact. Given that Kandal province offers more reasonably priced real estate than Phnom Penh, investors seeking long-term capital appreciation are anticipated to turn their attention there.
TIA’s development is not just about passenger flights; it is also expected to drive the growth of Cambodia’s logistics and air cargo sector. The establishment of freight-handling zones, warehouses, and e-commerce fulfillment centers will create demand for commercial land like warehouses, factories, and office spaces, Industrial parks to support businesses engaged in import/export, and retail developments catering to airport staff, travelers, and nearby residents. This will directly increase land value and commercial property demand, particularly in areas adjacent to the airport.
(Techo International Airport construction update)
Furthermore, Cambodia’s tourism industry has long been a major driver of the real estate sector, particularly in hospitality, serviced apartments, and rental properties. The completion of TIA is expected to increase international arrivals, strengthening demand for hotels, resorts, and guesthouses in Phnom Penh and surrounding areas, serviced apartments and condominiums catering to expatriates and business travelers, as well as short-term rental properties like Airbnb-style accommodations for transit passengers.
In 2019, Cambodia welcomed 6.61 million international visitors, with 3.71 million arriving by air. The COVID-19 pandemic led to a significant decline in tourism, with arrivals dropping to 1.31 million in 2020 (-80.2%) and further to 0.20 million in 2021 (-85.0%). A strong recovery began, with international arrivals surging to 2.28 million, a remarkable 1,059% increase from 2021. Then, In 2023, the upward trend continued, with 5.43 million arrivals, representing a 139.5% growth compared to 2022.
Post-pandemic tourism is recovering rapidly, with 5.37 million international arrivals from January to October 2024, an increase of 22% compared to 2023 (according to the Ministry of Tourism). With TIA’s opening, these numbers are expected to surpass pre-pandemic levels, further fueling demand for hospitality real estate, and solidifying Cambodia's position as a premier tourist destination in Southeast Asia.
One more thing, the Cambodian government is heavily investing in infrastructure projects that will support TIA’s connectivity, including new expressways linking TIA to Phnom Penh, improving accessibility, railway extensions that facilitate passenger and cargo transport, and many smart city initiatives, promoting sustainable urban development near the airport.
For instance, for better transit to the new airport, the government has constructed the new overpass at the Kbal Thnal area of Phnom Penh, commonly known as Kbal Thnal Bridge, connecting Samdech Techo Hun Sen Blvd (60m Street) and Monivong Blvd. Ground was broken for the overpass in 2022 and the project is expected to finish in 2025. The flyover, consisting of two tiers, is costing more than $36 million, and is expected to support TIA’s connectivity, easing congestion.
(Kbal Thnal Sky Bridge pictures taken by KiloTRAVEL)
Beyond TIA, Cambodia’s aviation sector is experiencing rapid growth, with new international routes being established. Siem Reap-Angkor International Airport (SAI), which opened in late 2023, will receive direct flights from India’s IndiGo Airlines starting February 2025, operating three times weekly between Kolkata and Siem Reap. Cambodia Angkor Air has also expanded operations, running four weekly flights to India since mid-2024, further enhancing connectivity.
Final Thoughts: What This Means for Real Estate Investors
The completion of Techo International Airport marks the beginning of a new era for Cambodia’s real estate sector. Investors, developers, and homebuyers should take note of the following key trends:
- Land and property values in Kandal province will be appreciated significantly.
- Commercial and industrial zones will emerge as major investment hotspots.
- Tourism-driven real estate (hotels, serviced apartments) will experience higher demand.
- Infrastructure projects will enhance accessibility, further driving urban expansion.
For those considering real estate investment in Cambodia, now is the ideal time to explore opportunities in and around TIA’s location. As Cambodia continues its trajectory toward becoming a regional economic hub, the real estate sector will remain one of the biggest beneficiaries of this transformation.
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