Demand for retail space in Yangon is at an all-time high, due to the continuous entry and expansion of foreign and local brands. “The shift in consumer preferences towards modern retail developments is creating an impetus for expansion”, said Karlo Pobre, Associate Director at Colliers International.

As of the first half of 2017:

• Yangon’s total retail stock: 290,000 sqm of leasable space
• Retail supply had increased by 32% compared to 2016
• 7 more retail projects to be completed this year representing 78,000 sqm
• Retail rental rates are currently at USD31 per sqm, up 13% from last year

Modern shopping centres increase the presence of luxury designer brands such as Coach, Versace, and Hugo Boss. But, demand is still largely focused on affordable products such as F&B. The affluent tend to travel to Bangkok or Singapore to purchase big-ticket items.

Myanmar is now poised to open up the retail sector to 100% foreign-owned companies. On 12 June 2017, the Ministry of Commerce (MOC) issued a notification permitting foreign companies to conduct retail and wholesale trade of fertilizers, seeds, pesticides, hospital equipment, and construction materials, when before it could only be done in a joint venture with a Myanmar citizen. 

“This will further boost Myanmar’s surging economy and foreign investment profile, and encourage better competition in the marketplace by providing more choice of goods,” said Pedro Bernardo, a partner and principal foreign attorney at Kelvin Chia Yangon Ltd.

“Developers should also focus more on integrating entertainment facilities in their developments to generate stronger foot traffic”, said Joshua De Las Alas, Senior Analyst at Colliers International. This includes gaming arcades, bowling alleys, clubs and bars, indoor sports activities, and other interactive platforms and playgrounds.

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