The Myanmar real estate sector demonstrated strong growth in 2018 despite the current challenges that the country faces. For 2019, we believe the sector will keep growing as buying Myanmar property continues to be one of safest investments for investors and home owners, be it for short or long term.
iMyanmarhouse.com sees the increasing availability of housing mortgages in Myanmar as a key reason that the sector will experience continued growth. In mid-2018, iMyanmarhouse partnered with all major banks to offer mortgage comparisons and pre-approvals, aiming to facilitate easier access to credit for buyers. While property loans were nascent prior to mid 2018, 2019 and subsequent years will show a significant increase in access to loans which will consequently act as a platform to improve the sales of properties.
The 2016 Condominium Law proved to be an additional contributing factor that has provided access to foreign investment in property. Foreign investors are now allowed to buy Property in Myanmar, with the right to own up to 40 percent of units in new condominium projects, while individuals can buy up to 25 units.
According to U Myo Myint, a member of the Yangon Regional Condominium Management Committee, “Within the next 2-3 months, units registered under the Condominium Law will be available in the market and can be sold to foreigners.”
The property development sector has also seen an influx of new projects being developed in different parts of Myanmar thanks to an increase in joint ventures between foreign developers and Myanmar-owned companies breathing new life into Myanmar property. The secondary market for older flats in most developed regions has an important influence on the real estate sector. As location remains the most important criteria for most buyers, prime real estate is mostly located within the Yangon region. Areas such as, Sanchaung, Bahan, Yankin, Tamwe, that are central and have easy access to modern infrastructure, transportation and nearby amenities, continue to be popular in the secondary market.
Yangon apartments are among the most sought-after living spaces as the younger generation of professionals and expatriates flock to these urbanized areas. The nation’s continued growth through the implementation of its exemplary political and economic reforms with stable regulations has brought about the advent of world-class modern amenities and facilities; transforming among others, the property market; capturing the interest and participation of local and foreign buyers.
The constantly improving infrastructure in Myanmar is, in part a positive move to capitalize on its strategic location between China and India i.e. companies setting up shop, trade and logistics. Development and refurbishments are still ongoing to leverage commercial value to the residential areas and structures and boost Yangon rentals; which has to-date seen a burgeoning rebound as access to viable banking facilities has provided the pillar enabling boosted buying power for locals. 2019 is proving thus far to be the turning point as new life is breathed into Myanmar’s economy and through its progressive and dynamic stance on the future.
