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Emerging from 50 years of political and economic isolation, today Myanmar shows good potential for growth. Many people believe that the country may be Asia’s next rising star. Rich in natural resources and with a large youthful population, Myanmar seems ripe for investment. However, there are many challenges facing the country. Unskilled labor force, antiquated financial system, and poor infrastructure are detrimental. Nonetheless, the perceived opportunities available here are many and prospective investors are prepared to ignore and combat these negatives. Why invest in real estate in Myanmar Real estate is among the sectors that are attracting investors from the world over. For decades, Myanmar real estate market has been in relative hiatus. However, current and future trends point to the market struggling and overwhelmed to meet the demand in the short to medium term while a 2040 plan lays foundations to offer a world-class city with top notch real estate at competitive prices in the long term. Currently, there is a shortage of hotels and office buildings in the commercial capital of Yangon. This means the city is not able cater for the market of the moneyed outsiders. Law and foreigners Foreigners can’t own land in Myanmar. Nonetheless, they can lease land for up to 70 years with Myanmar Investment Commission (MIC). Joint-venture partnerships as well as leasehold agreements with the reputable landowners will permit foreign developers to construct top notch real estate for foreign tenants, relieving the current demand gap owing to short supply. There are a number of foreign companies who have invested in property market with the government of Myanmar under Build-Operate-Transfer agreements. Popular international hotels are the prime example. Condo law in Myanmar allow real estate investment It’s expected that the condominium laws will be ratified before the end of 2013, enabling foreign ownership as well as real estate investment of units in structures taller than 6 stories and serviced by elevators. Most landlords expect to purchase new lands or re-develop their existing land or property, through pre-sales of condo units to foreign investors who want to invest in Myanmar, and to Myanmar citizens. Analysts expect a large boom of condo and mixed-use structures aimed at alluring foreigners as well as wealthy Myanmar citizens. Property prices in Myanmar The price of real estate in Myanmar has reached their height with businessmen as well as construction companies eyeing the properties. If you are in search of Myanmar real estate for sale, budget for $ 1,245 per sq. ft. But the actual price once the final deal is struck is approximately 700,000. So the real price is in the hands of the sellers and the buyers. There isn’t a stable market price for these properties. Prices of land for surrounding the newly special economic zones like Dawei and Thilawa have also increased dramatically, surpassing the cost for land in other Southeast Asian countries. Property analysts agree that the main cause of the rise in property costs is the increase in re-sale of virgin land to investors who have no plans to invest in manufacturing sector or other projects. Hence, the issue on the rising cost of property and land remains a big challenge to Myanmar’s development.
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