Construction & Real Estate
From The Report: Myanmar 2015
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The opening of Myanmar’s economy has led to a proliferation of mega-projects in the past four years, including the upgrade of infrastructure and the expansion of utilities. The government has embarked on projects to upgrade, broaden and build a long list of facilities, ranging from roads to bridges, seaports to airports, hotels to malls, high rises to apartments and hydroelectric dams to electric plants. Evidence of the construction boom is visible throughout Myanmar, especially in Yangon, an old capital that is on an express track to becoming a modern city. The influx of foreign firms has caused a shortage of office and commercial space. With rental rates rapidly rising, a number of new projects are being launched that will market to international customers. Despite the rapid growth of the economy overall, the construction sector may see a slight slowdown as investors adopt a wait-and-see approach pending general elections in November 2015, after which Myanmar is likely to see a catch up period of intense investment in a wide range of projects.

This chapter contains interviews with Dr Khin Shwe, Chairman, Zaykabar; and Stephen Suen, Marga Group.

Articles from this Chapter

Overview

Developers are rushing to build infrastructure, offices and housing
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Evidence of the construction boom in Myanmar is visible throughout the country and especially in Yangon. The old capital has been awakened and is on an express track to becoming a modern city, with the number of public works and concrete buildings rapidly rising in the last four years. This trend is set to continue, as the economy is on track to grow 7.8% in both FY 2014/15 and FY 2015/16, according to the Asian Development Bank (ADB). Growth is supported by the government’s reform programmes. Elections Despite…

Analysis

Building surge continues: Producers of construction materials are expanding to help meet demand
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Growing demand for residential units, the urbanisation of major cities and a national drive to bridge infrastructure shortfalls, should help Myanmar’s construction sector maintain its recent track record of strong growth over the coming years. The building industry is reaping the rewards of Myanmar’s fast-paced economic expansion, buoyed by growing international investor interest and rising business confidence. The construction sector is expected to expand at an annual rate of at least 8% over…

Interview

Dr Khin Shwe, Chairman, Zaykabar: Interview
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Interview: Dr Khin Shwe What steps can be taken to ensure that the quality of construction meets international standards? DR KHIN SHWE: Both foreign and domestic construction firms have a role to play in developing infrastructure, which has lagged behind the rest of the world for many decades. In the context of the Foreign Investment Law, steps need to be taken to introduce a joint venture or a build-operate-transfer (BOT) system in Myanmar. We welcome public-private partnerships that focus on…

Overview

New projects are attempting to bridge the housing supply gap
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Major demand for real estate is being driven by Myanmar’s significant economic growth, and market participants are looking forward to the arrival of new foreign investors. Thanks to the current government’s economic and political reforms since 2011, Myanmar is seeing broad growth in sectors such as oil and gas, telecommunications, manufacturing, construction and tourism. With new arrivals, the demand for office and living space has spiked tremendously, putting a huge burden on Myanmar’s existing…

Interview

Stephen Suen, Chairman, Marga Group: Interview
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Interview: Stephen Suen How does Myanmar’s property development segment compare with other ASEAN members? What makes it a worthwhile investment destination? STEPHEN SUEN: During the initial stages of the opening of their markets, some emerging economies were not ready for globalisation and modernisation. Myanmar is slightly different. There are a lot of reasons – including the fact that there is a British common-law system – that attract foreign companies here. The country is very rich in…

Analysis

Setting the boundaries: New legislation will improve the foreign investment climate for real estate
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A much-anticipated reform in the real estate sector for 2014 was the introduction of the draft Condominium Law, but a series of disagreements among lawmakers has delayed its introduction to an unspecified date. The draft law is now expected to be re-submitted to the parliament in January 2015. The law, if approved as proposed, will allow foreigners to own apartment units, albeit with conditions attached. It will give foreigners the right to lease, buy or exchange apartments, provided the number of…