Although unreasonably high tax and interest rates are posing challenges to Myanmar’s construction sector, 2018 should be a fruitful year for its real estate market, following the release of the new Condominium Law and the new Investment Law, along with the approval of the new Companies Law. Besides, more transparent economic policies and quicker reforms should give new impetus to market entrants as well as business expansion, leading to positive signs for net absorption of office space.

Demand for small-sized and affordable apartments increases in Yangon

In this context, a brighter outlook is forecast for hotel and serviced apartment markets with major mixed-use projects under development, while demand for small-sized and affordable apartments and condominiums are expected to rise, especially in the outskirts of Yangon and Mandalay.