Although Myanmar has been faced with internal conflict, a new long-term economic agenda, alongside rising oil and gas prices and considerable growth in some manufacturing segments, are set to encourage increased foreign direct investment inflows into the country.
What steps can the authorities take to boost investment in affordable housing?
Since the beginning of Myanmar’s economic and political reform in 2011, the construction industry has experienced mixed fortunes. Although the government has recognised the economic multiplier effects of infrastructure development, some large-scale projects have been held up by bureaucracy and investor scepticism.
In an effort to alleviate problems associated with rapid urban growth, the Yangon regional government announced the formation of the New Yangon Development Company (NYDC) in March 2018. The NYDC is tasked with overseeing the development of a new city on the western outskirts of the commercial capital.
A major factor constraining the development of the real estate sector is the lack of a mature mortgage market. Ambiguities on regulations related to immovable property rights, and incomplete or incorrect ownership records, are two of the main reasons why a mortgage culture has not yet developed in Myanmar.
After an initial property boom in the first few years after political and economic reforms began in 2011, Myanmar’s real estate sector has faced some challenges in more recent years. The country’s main real estate market, Yangon, experienced peak office rental prices as high as $110 per sq metre in 2013 and 2014, putting it on a par with...