The future of Myanmar real estate could lie in this sector
The future of Myanmar real estate could lie in this sector
An ‘industrial revolution’ is coming
The number of inquiries on industrial land and buildings has more than doubled over the past year, according to Verity Ramsden, associate director for advisory services at Yangon-based real estate firm Slade Property Services.
Writing in Frontier Myanmar, a local English-language weekly magazine, Ramsden noted that Myanmar industrial real estate provides returns of around 15 to 20 percent a year. “Whereas a few years ago everyone wanted to talk about hotels and condominiums, now investors are seeing the real potential in the industrial market,” she said.
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New industrial and special economic zones have emerged across the country. A particularly popular project is Thilawa SEZ, a 2,500-hectare special economic zone that opened last year, with a second phase due for completion soon. Foreign direct investment into the industrial park has hit almost USD1 billion.
Thilawa has generated a spike in job opportunities, leading to a notable rise in high-end housing around the townships of Kyauktan and Thanlyin where the SEZ is situated.
“As with many elements of Myanmar’s opening up, industrial real estate has a few complications and hurdles to overcome to be truly competitive with the rest of the region,” Ramsden said. “However, for investors, developers and occupiers, all the current signs are promising, and it looks like Myanmar is due an industrial revolution in the years to come.”
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Source: Property Report