According to Colliers International, the retail market remains one of the strongest sectors in Yangon with a 90% occupancy level sustained over recent years.

Karlo Pobre Deputy Managing Director of Colliers International says the "lease rates have also consistently increased, albeit at marginal levels. In H1 2018, the government took further action to liberalise the sector by allowing full foreign ownership of wholesale and retail operators subject to certain restrictions such as minimum capital investment requirements as well as minimum trade areas."

This much-welcomed liberalisation is expected to facilitate foreign investment in retail and wholesale activities in Yangon going forward. In the meantime, Colliers sees robust and untapped demand for large-scale shopping malls. Creating destination retail establishments geared towards recreation and entertainment will bode well for the market as these appear to be an attractive offering to many locals."

At a glance:

• Movement towards better quality offices is now becoming more evident as rental rates stabilise at competitive levels.
• Newer office buildings are now being leased at lower rates, which in turn have exerted downward pressure on older and lower quality developments.
• Serviced apartment rates increased marginally due to lack of new supply in the near term. Further liberalisation in the banking, manufacturing
• Retail industries, as well as the eventual opening of the insurance industry in the coming years, should provide an additional boost to demand. 

"The government’s promulgation of new policies to encourage foreign investment should propel expatriate housing demand over time. Occupancy rates in the upper-scale hotel market increased as Asian tourist arrivals surged. Visa leniency for countries such as Japan, South Korea and China is expected to boost tourist arrivals, but may not affect the upper-scale hotel market since Asian tourists tend to
spend less than their Western counterparts," says Pobre.

Related reading: Retail offerings call for repositioning

Government initiatives centred on tourism and retail are said to have reinforced growth in the retail and business hotel markets.

"The opening of the sector to foreign investors has already garnered increased interest among major retailers in Asia in Yangon’s retail market. Likewise, stronger business interest coupled with the increased leniency in visa requirements for several major trading partners including Japan and South Korea is expected to spur growth in business visits to Yangon," says Pobre. 

For more information about the Myanmar Retail market or the market in general phone or email Karlo Pobre Deputy Managing Director of Colliers International via the contact details below

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