13 Sept 2019
CAMBODIA: Construction and Real Estate Sectors Face Regulatory Shakeup
A new set of technical standards and procedures is to be introduced under the terms of the country’s proposed Construction Law, with the move seen as means of better regulating the rapidly-expanding domestic real estate sector. Accordingly, among the many priorities of this incoming legislation are enhanced market efficiency, more robust management of industry professionals and improved technical/safety standards across the whole of the construction sector. It will also allow the relevant government agencies to monitor construction practices, inspect materials and equipment and more effectively police construction, repair and demolition permit procedures.
Overall, business and industry insiders have welcomed the legislation, believing it will increase investor confidence in the country’s currently unregulated construction sector, while encouraging developers to adopt an international standard of construction best practice. At present, the construction and real estate industries are among Cambodia’s fastest growing business sectors, with, according to the Ministry of Land Management, construction permits granted for 2,572 projects (representing a total investment of US$4.56 billion) in the first seven months of 2019. This represents year-on-year increases of 30% and 52% respectively.