The continuous liberalisation of various investment sectors, especially finance and insurance, among others, should help propel demand for office and residential space this year.

Healthy occupancy levels to continue to persist in the retail and serviced apartment sectors despite the rise in stock witnessed in 2015. 

Despite the sluggish condominium sales performance, the real estate market is overall resilient. foreign investors remains keen, and in fact, are taking a fresh look at Myanmar, in a rerun of the 2011-2013 period when the country first appeared on the radar screen.

1.    Flight to better quality serviced apartments to become more evident
“With better quality serviced apartments completing, tenants will start to move away from poorly maintained and older buildings. Stronger demand is anticipated for new limited or mid-tier serviced apartments as opposed to the upper-scale. Overall, the rental rate will remain a major consideration among the vast majority of expatriates” 

2.    Insurance companies to help fuel demand for office space
“The eventual opening of the insurance industry, along with the further liberalisation of the financial sector will drive occupancy levels upward in 2017.  The government will streamline and expedite investment approval processes which should facilitate the smooth entry of more foreign companies. This will contribute to the rise in the overall office take-up rate for the year. 

3.    More engagement between hotel owners and mid-tier foreign operators
“With majority of the future projects geared toward the upper-scale segment, developers  are likely to refocus their plans by tapping into the business and budget travelers’ needs. This will pave the way for the entry of budget and midscale foreign hotel brands. In fact, Best Western’s strong performance and the successful opening of Ibis Styles, should drive similar operators to engage local developers into more discussions this year.” 

4.    Continuous woes for residential condominiums
“A lackluster performance in the condominium sector will continually persist given the sheer volume of remaining inventory. Signs of recovery may surface in the mid and upper-mid segments but will remain inadequate to help buoy the overall sales take-up. Land prices will remain generally high making potential projects unprofitable. This is on top of the high cost derived from an onerous car parking requirements” 

5.    Banks to design housing mortgage with long-term loans 
“The banks will attempt designing mortgage programs to encourage genuine housing demand. However, with the high interest rate climate, consumer interest will appear initially weak.”

6.    Stronger interest for factory buildings, warehouse facilites
“Myanmar’s low labour cost and attractive demographic fundamentals will further lure international companies in 2017. More manufacturing, warehouse, and logistics facilities will be required, but the high industrial rates or the lack of good quality facilities could pose a challenge. On the other hand, this could provide opportunities for developers to offer build-to suit solutions”    

7.    New malls to revolutionize yangon’s retail experience  
“The retail market will be a star performer in 2017 . New international quality malls will be designed with creative and modern offerings in an aim to enhance shopping experience. With the market’s growing affinity to modernism, developers will adopt global retail practices and malls will begin to resemble that of a typical Southeast Asian City. The entry of foreign brands will be more noticeable, led primarily by F&B. Meanwhile, sales for high-end and luxury items will struggle given the market’s current modest purchasing capacity” 

8.    Competing visions for yangon region will elicit confusion
“As the government revisits plans of expanding the Yangon Region, various master plan proposals will be solicited. Competing or conflicting recommendations will create more confusion, and is only to cause further delay.”

9.    Rising number of domestic travelers in leisure destinations
“The rising disposable income will reflect stronger confidence in domestic tourism this year. Hotels in leisure destinations such as Ngapali, Ngwesaung, Bagan, and Inle will benefit healthier occupancy levels, driving developers to review future expansion plans. Beach hotels and resorts are likely to expand operations even during the rainy season, while local travelers take advantage of the promotional rates.”

10.    Foreign investors will take a fresh look at myanmar 
 “As the government solidifies economic policies, a brighter investment climate will resurface in 2017. Interests will build up and investors will take a fresh look at Myanmar in a rerun of the 2011-13 period when the country first appeared on the radar screen.