The International Monetary Fund (IMF) has predicted that growth in the Kingdom’s real estate sector will slow in the next five years.

And while insiders say the sector is saturated, government officials seem to disagree with the IMF’s forecast.

The IMF’s Cambodian Economic Growth Report released on Tuesday predicted that the country ‘s economic growth will continue to remain robust for another few years, before falling to about six per cent in the medium term due to subdued productivity growth, credit maturity and real estate cycles.

“Currently, the real estate and construction sectors are strong drivers of economic growth, but five years [from now], other sectors will [drive] growth [more] than [real estate and construction],” IMF representative Jarkko Turunen said.

CPL Cambodia Properties Ltd chairman and CEO Cheng Kheng who runs the oldest real estate firm in Cambodia said the sector will remain strong for the next five years.

“The real estate and construction sectors in Cambodia currently have strong momentum in just three to four provinces for the next five to six years, I think that they will continue to pick up in other provinces with potential. The real estate sector in Cambodia will continue to grow for a long time,” Kheng said.

Cambodia Constructors Association secretary Chiv Sivpheng said large construction projects take three to five years to complete, so the IMF’s forecast could come true amid the completion of some of them.https://www.phnompenhpost.com/post-property/real-estate-growth-slow-next-five-years-imf-predicts