Construction & Real Estate
From The Report: Myanmar 2014
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Myanmar is being hailed as the next Vietnam, which kicked off a multi-decade construction boom when it opened up to the world in the 1990s. With much of Myanmar’s housing stock in poor shape and cities expected to grow rapidly, demand for middle-class urban apartments will be a powerful driver of growth. And with the country’s limited domestic capacity and wide range of construction needs, there are plentiful opportunities for foreign investors, international construction firms, and sellers of construction equipment materials. The biggest recent legal change for the industry was a reform to the Foreign Investment Law in 2012 that allows foreign investors in real estate to operate without domestic joint venture partners through build-operate-transfer lease agreements with the government. But developers have a long way to go to catch up with demand, and the pace of development is still restrained by the limited availability of prime land and domestic financing.
This chapter contains interviews with U Kyaw Lwin, Minister of Construction; and U Aung Zaw Naing, Group CEO, Shwe Taung Development Co.

Articles from this Chapter

Overview

A rapid restart: Paused projects and new developments are coming on-line quickly
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The construction sector is booming as Myanmar’s opening to the world has brought in foreign investment and sparked an economic renaissance. With the country’s limited domestic capacity and wide range of construction needs, there are plentiful opportunities for foreign investors, international construction firms, and sellers of construction equipment and materials. “Myanmar is currently at ground zero. The construction sector will be very busy for the foreseeable future as the country looks…

Analysis

A higher calibre: New standards are central to upcoming development
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As demand for quality space in Yangon has multiplied since the lifting of sanctions, Myanmar’s construction industry has come under intense pressure to raise its standards and technical know-how. Local construction materials, equipment, expertise, workmanship, and safety of worksites and occupied buildings are all behind international standards to varying degrees. Most critically lacking is capacity to build tall buildings, which has become almost the only way to build in Yangon due to the high…

Interview

OBG talks to U Kyaw Lwin, Minister of Construction
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Interview:U Kyaw Lwin How has the construction industry evolved in recent years given rapid development of the economy? U KYAW LWIN: Since Myanmar began undertaking political and economic reforms, there has been a growing interest from foreign investors. The construction industry is one of the key sectors benefitting from such interest. There is now a huge market for investment in improving and upgrading our underdeveloped infrastructure. Foreign and local investment in the construction…

Interview

OBG talks to U Aung Zaw Naing, Group CEO, Shwe Taung Development Co.
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Interview:U Aung Zaw Naing What kind of steps can be taken to reduce financial speculation and ensure the availability of affordable land for industrial projects? U AUNG ZAW NAING: The increase in land prices has been underpinned by the improved political landscape and the opening up of the economy in Myanmar, leading to a rise of confidence among global investors. As the country is currently undergoing a rapid transformation, including an inflow of international investment, some forms of…

Overview

Striking a balance: New housing and office projects are changing the landscape of cities
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The real estate sector in Myanmar is riding high, and there is strong demand for quality space in Yangon in particular. With office rents in prime buildings rivalling those in Singapore and land prices also soaring, those with land are enjoying a windfall, while newcomers face a high cost of entry. Developers are focused on high-end projects in Yangon (formerly known as Rangoon), where quality offices, apartments, hotels and retail spaces are all in short supply. Development has greatly accelerated…

Analysis

A place to call home: Rapid urban migration is outpacing housing supply
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As Myanmar moves to catch up with rapid industrialisation, the real estate sector has an important role to play in accommodating an expected wave of migration to urban centres. The pressure will be intense on Yangon, the business capital and primary port. Urban Renewal After being preoccupied for many years with the building of Naypyidaw, the new political capital, Myanmar’s government is shifting the focus of its urban development efforts back to Yangon. The central government and Yangon’s…

Analysis

Partnering up: Foreign investors collaborate with local players
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Long a restricted area, Myanmar’s real estate sector is opening up to foreign investment. Two major legal changes – a new Foreign Investment Law adopted in late 2012, and a new Condominium Law expected to be adopted in early 2014 – are set to dramatically expand opportunities for foreigners to invest in Myanmar property. At the smaller end of the investment scale, foreigners who want to own their own apartments and foreign companies and organisations that wish to own office space in condominium…