Dec 4, 2017

Foreigners interested to purchase real estate in Myanmar, but leagal ownership not allowed and prices remain unrealistic

Prices continue to drop in the Myanmar property market as a dramatic oversupply in all categories of Yangon real estate persists!  In our update for previous years, extreme prices were common – $8psf for office space, and $5500/mo+ for quality apartments.  With the opening of so many new real estate projects of all types – malls, hotels, condos, and offices – key industry trend measures such as purchase prices, rental rates, occupancy levels, and average daily rates are at almost unbelievably low levels(for this market), with more downward pressures expected as several mega developments open in the coming months.

The lifting of U.S. Sanctions has also opened up access to a few key building that were previously on the blacklist.  In short, it is STILL a great time to be an occupier/renter seeking new spaces.  Expect  to see rent prices continuing to drop in 2017 and 2018.

Until recently, real estate was one of the limited numbers of wealth management vehicles in Myanmar, and most developments were locally-owned. Under Western sanctions that prevented interaction with international banking and capital markets, successful business persons in Myanmar stored their wealth in land and buildings. They regularly bought and sold land assets, like institutional investors in the west would buy and sell blue chip stocks and mutual funds, with speculation driving up prices. The price of land further skyrocketed as the suspension of western sanctions became reality, and foreign developers were priced out of the market.