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The Myanmar real estate in Yangon has most expensive real estate market throughout Southeast Asia. It is known that the prices of land in Yangon have increased up to three times in the past two years. The price increase is mainly due to the foreign investors who came to Myanmar in search of bargains. However, this fast rising property prices would also create fear among foreign investors who look forward for any business opportunities in Myanmar, says experts. In addition, there are also a number of other factors that led to this price rise, and they include a. Looked upon as a better place for investment: In Myanmar, the banking system is not functioning too well and so people are hesitant to put their money in banks. In addition, due to the lack of stock exchanges in the country, real estate has been seen as a better investment option by the people of Myanmar. Yangon is a place where many business owners try to invest their hard earned money, thus making land prices very expensive. b. Land purchased with cash: Unlike other nations where people would buy land through bank loans, real estate in the country are paid with cash. Due to this fact, there is a remarkable patience from the part of sellers who simply refuse to sell their land or house at a loss and would wait for the real estate market to bounce back. This has also created a rise of real estate prices in Yangon. c. Agents: The prevalence of agents in the real estate market is another factor that leads to this price rise. Due to the lack of large organizations in the country, many people are forced to become real estate agents who would always try to keep the prices of houses and land high, as their commission is mainly based on the sale price. d. People's perception towards land: People in Myanmar consider real estate investment as a safe option. Since real estate is scare in Yangon, people are ready to pay a high price for getting a land of their choice. In addition, the city Yangon is the Port in Myanmar. These two factors lead to rise in real estate cost in the downtown Yangon. e. Foreign investment: Several foreign businesses have moved to the city of Yangon in Myanmar for conducting businesses. Since, no foreigner can buy a land in Myanmar; they have the option to lease them for a period of up to 60 years with an MIC permit. This is another factor that results in the real estate boom in Yangon city. Conclusion: According to real estate agents, property is seen as the most lucrative and safest option for investment in Myanmar real estate in Yangon for buyers. It is currently a seller's market, thus making real estate in Yangon a costly affair. Also, the high demand for property and the new policies enacted by the government provides feeling that the returns from property trading would be higher than putting the money in a bank or elsewhere, thus making Yangon real estate very expensive.
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Myanmar, real estate, Yangon,
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