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Everything you need to know before buying real estate is included in our Myanmar Property Pack
Are you considering investing in Myanmar's real estate market by 2025? Curious about the trends that could shape property values and opportunities in the coming years? Wondering how economic shifts and policy changes might impact your investment decisions?
We will lay down recent insights, providing you with a clear picture of the future landscape. Here, no guesswork—only solid data to guide your real estate ventures.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Burma (Myanmar) Property Pack
1) Regulatory changes will simplify foreign investors' purchase of residential properties in Myanmar
Myanmar is making it easier for foreigners to buy property.
In 2016, Myanmar introduced the Condominium Law, allowing foreigners to own up to 40% of a condo building. This was a game-changer for foreign investors who previously couldn't own property in the country. Imagine owning a piece of a high-rise in bustling Yangon, a city that's rapidly modernizing and offering new opportunities. The law has opened doors for those looking to invest in Myanmar's growing urban landscape.
Another significant change came with the Myanmar Companies Law of 2017. This law permits local companies to have up to 35% foreign shareholding. What does this mean for you? It means you can indirectly own land by partnering with local companies. This is a clever workaround for foreign investors eager to tap into Myanmar's real estate market, especially in areas like Mandalay, where land values are on the rise.
The government isn't stopping there. They've been actively promoting foreign investment through various policy initiatives. In 2017, they introduced a new comprehensive Investment Law to streamline investment regulations. This move shows the government's commitment to making Myanmar a more attractive destination for foreign investors. With these changes, the real estate sector is becoming a hot spot for international buyers.
For those eyeing Myanmar's real estate, these regulatory changes are a big deal. They not only make it easier to invest but also signal a shift towards a more open and investor-friendly environment. The government's efforts are paying off, as more foreign investors are now considering Myanmar as a viable option for property investment.
So, if you're thinking about buying property in Myanmar, now might be the perfect time. With the new laws and policies in place, the process is becoming more straightforward. Whether you're interested in a condo in Yangon or land in Mandalay, the opportunities are expanding. The government's push for foreign investment is creating a more accessible market for international buyers.
Sources: Investment Policy Monitor, Open Development Myanmar, ASEAN Briefing
2) Rents in Yangon will rise as the city's economy grows
Rents in Yangon are on the rise as the city experiences economic growth.
Yangon's population has exploded, jumping from about 5.6 million to nearly 10 million. This surge is largely due to people fleeing civil unrest and other crises, leading to a serious housing shortage. As a result, rents have almost doubled since early 2023.
Adding to the pressure, many multinational companies are setting up shop in Yangon. This influx of businesses is not only boosting the local economy but also increasing the demand for housing, especially in downtown areas where rents are already climbing.
The situation is worsened by the limited number of new residential developments. With just over 300,000 apartments in central Yangon, the demand far exceeds supply. This imbalance is a classic recipe for rising rents, a trend that has been evident since 2023.
In urbanizing cities, such conditions typically lead to increased rents. Yangon is no exception, as the city continues to attract more professionals who need housing, further driving up rental prices.
Sources: RFA, GNLM, Mordor Intelligence
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3) Yangon residential property prices will rise due to limited land and growing urbanization
Yangon's population is booming, expected to hit over 5.9 million by 2025.
This surge is largely due to people flocking to the city, often escaping civil unrest, which has created a housing crunch and pushed rents higher. As more people call Yangon home, the demand for housing has skyrocketed.
One major issue is the limited land available for new housing. Government reports emphasize this scarcity, which naturally leads to higher property prices as demand continues to outpace supply.
In the outskirts, new satellite townships are popping up, but even there, property prices are climbing due to the high demand and limited land options.
For those considering buying property in Yangon, it's crucial to understand that urbanization is rapidly increasing, further driving up the need for residential spaces.
With the city's growth showing no signs of slowing, residential property prices are expected to keep rising, making it a potentially lucrative investment.
Sources: World Population Review, Radio Free Asia, Global New Light of Myanmar
4) Mandalay will experience a rental yield drop due to increased supply from new developments
Mandalay is seeing a boom in new residential developments, with over 5,000 new apartments added to the market.
Thanks to the Ministry of Construction's projects, the supply of rental properties has surged. This means more choices for tenants, but it also means older properties are facing stiffer competition.
With all these new options, vacancy rates in older buildings are climbing. Tenants are drawn to the modern amenities in new developments, leaving landlords of older properties scrambling to fill their units.
Real estate agencies are noticing an oversupply, which usually means rental yields are taking a hit. More properties than tenants mean landlords might have to lower rents to attract interest.
Surveys highlight that tenants prefer the newer developments, which is shifting demand away from older units. This preference is pushing rental prices down for older properties, further affecting rental yields.
Sources: Eleven Myanmar, Ascendix Tech
5) Rural property prices will stay stable due to ongoing urban migration
Urban migration in Myanmar is on the rise, with more people moving to cities each year.
Despite this trend, rural populations aren't shrinking dramatically. People are still choosing to stay in rural areas, keeping the population numbers stable.
Take South Okkalapa township, for example. While urban areas are seeing a real estate boom, property prices in rural areas have stayed stable. In new townships, prices have doubled, but rural areas haven't experienced such spikes.
This stability is largely due to lower demand for rural properties. With fewer people looking to buy, prices don't have the pressure to rise quickly.
Experts and government reports agree that urban migration has minimal impact on rural property markets. The focus is on developing urban areas, leaving rural property prices largely unchanged.
So, while cities are expanding, rural property markets remain steady, offering a stable investment opportunity.
Sources: Global New Light of Myanmar, Trading Economics, UN Habitat Myanmar
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6) Coastal property prices will rise as buyers prioritize climate resilience
In Myanmar, climate change is reshaping the real estate market.
Recent challenges like severe flooding and coastal erosion have made buyers prioritize climate resilience. The government is stepping up with initiatives such as the Myanmar Climate Change Policy and the National Adaptation Programme of Action (NAPA). These efforts focus on promoting sustainable development and encouraging eco-friendly construction, which is becoming a trend in the 2025 real estate market.
Buyers are increasingly interested in tech-smart, energy-efficient homes, reflecting a shift towards sustainability. This change is not just a local phenomenon; international aid is also playing a role by funding climate adaptation projects. These projects aim to build infrastructure that can better withstand climate impacts, making properties more appealing to potential buyers.
The media is also contributing by highlighting the importance of climate resilience and sustainable living. This increased awareness is driving more people to seek out properties that are designed to handle environmental challenges. As a result, the demand for climate-resilient homes is on the rise.
Coastal properties, in particular, are seeing a gradual increase in prices as buyers recognize the value of climate resilience. This trend is expected to continue as more people look for homes that offer both safety and sustainability. The focus on eco-friendly and resilient construction is not just a trend but a necessity in today's changing climate.
In summary, the combination of government initiatives, international support, and media influence is shaping a new real estate landscape in Myanmar. Buyers are more informed and are making choices that reflect a growing awareness of climate issues. This shift is likely to have a lasting impact on property values, especially in coastal areas.
Sources: IOM, MIMU, Bamboo Routes
7) Mandalay will see a strong price rise as it becomes a regional trade hub
Mandalay is on the brink of a moderate price increase as it transforms into a regional trade hub.
One of the main reasons for this shift is the improved transportation links that connect Mandalay to other regional markets. The Greater Mekong Subregion economic corridors are a game-changer, enhancing connectivity and boosting trade volumes through Mandalay. This makes the city a strategic spot for trade, attracting businesses and investors alike.
Trade activity is on the rise, with Myanmar's ports and logistics centers seeing a surge in activity. In 2022, there was a notable increase in container port throughput, hinting that Mandalay is reaping the benefits of this growth. As trade volumes climb, so does the demand for goods and services, which naturally nudges prices upward.
Industrial zones are expanding, and projects like the Myingyan power plant are drawing in foreign direct investment. This influx is a boon for Mandalay's commercial sectors, sparking economic activity. As more investors pour in, the demand for commercial and residential properties is likely to rise, pushing prices higher.
For those considering buying property in Mandalay, it's worth noting that the city is becoming a magnet for investment. The combination of improved infrastructure and increased trade activity is setting the stage for a vibrant economic future. As Mandalay continues to grow, the real estate market is expected to follow suit, making it an attractive option for potential buyers.
With these developments, Mandalay is positioning itself as a key player in the region. The city's transformation into a trade hub is not just a possibility; it's already underway. As the city evolves, the opportunities for growth and investment are becoming more apparent, making it a compelling choice for those looking to invest in property.
Sources: Baker McKenzie, CEIC Data, Greater Mekong Subregion
8) Rural areas will see stable rental yields due to reduced demand from urban migration
In Myanmar, urban migration has slowed down as people rethink where they want to live.
Rural areas are becoming more appealing because living costs in cities have skyrocketed, while rural living conditions have improved. This shift is making rural properties a hot investment, with rental yields staying stable or even rising. In fact, Myanmar's rural rental properties boast some of the highest gross rental yields globally, ranging from 13.3% to 16.0%.
People are increasingly choosing rural life due to better infrastructure and a desire for peace. The government is actively enhancing rural roads and electricity access, making these areas more attractive. This development is part of a broader trend where rural living is becoming more appealing thanks to improved infrastructure and economic growth.
The Myanmar Sustainable Development Plan is a major force behind this change. By focusing on infrastructure upgrades and expanding access to under-connected areas, the plan is making rural regions more desirable for both living and investing. This means that rural areas can maintain or even increase rental demand, despite the trends in urban migration.
As urban migration slows, rural areas are seeing stable rental yields, making them a smart choice for investors. The government's efforts to improve infrastructure are paying off, with more people opting for the tranquility of rural life. This trend is likely to continue, as rural areas become increasingly attractive for both residents and investors.
Sources: The IGC, Asian Development Bank, Myanmar Real Estate Market
Everything you need to know is included in our Property Pack for Myanmar
9) Rental yields in Yangon will rise as rental demand outstrips supply
The rental market in Yangon is buzzing with activity as more people flock to the city.
Driven by urban migration, the demand for rental properties is soaring as people seek better job opportunities and living conditions. The influx of expatriates, thanks to international businesses setting up shop, is also fueling this demand. With epidemic restrictions easing, Myanmar is becoming more accessible to foreign investments, further boosting the rental market.
On the flip side, construction delays, especially in affordable housing, are causing a supply crunch. While luxury properties might be in abundance, affordable and mid-range housing can't keep up with demand. This mismatch is a big reason why rental yields are on the rise.
Government initiatives to attract foreign investment are indirectly benefiting the rental market. By boosting the commercial real estate sector, these policies might eventually increase rental property availability. Historical trends show rental prices consistently climbing, underscoring a robust market.
Young professionals are leaning towards renting, drawn by convenience and a live-work-play lifestyle. Economic growth has led to higher disposable incomes, making renting more feasible. Reports of declining home ownership and long waiting lists for rentals highlight the strong demand for rental properties.
Real estate agencies note a spike in rental inquiries, especially for gated communities and condos. These properties, with their attractive amenities, are a hit with the middle and upper-middle classes. Comparative analysis reveals that Myanmar's rental properties offer some of the highest gross rental yields globally, signaling growth potential.
Sources: Mordor Intelligence, Yangon Real Estate Market, Yangon Price Forecasts, Myanmar Buy Property, Savills Yangon Market Brief
10) Yangon's downtown will experience a surge in demand as young professionals seek vibrant urban living spaces
Yangon's downtown is buzzing with young professionals seeking vibrant urban living.
In 2023 and 2024, 72% of Myanmar's internal migrants were young adults aged 18 to 34, flocking to cities like Yangon for better jobs and living standards. This shift is transforming the city into a lively hub, especially after dark.
Yangon's nightlife is booming, with new bars, clubs, and dining spots popping up, making it a magnet for young professionals. The city has evolved from a quiet place into a bustling urban scene, reflecting broader social and economic changes. Co-working spaces and startups are sprouting, offering dynamic job opportunities and a vibrant lifestyle.
The heart of Yangon is becoming even more appealing with its expanding retail and dining options. Trendy rooftop bars and upscale restaurants cater to a diverse crowd, enhancing the area's charm. Social media trends are also spotlighting Yangon's urban lifestyle, drawing more young professionals to the city.
Yangon's transformation is not just about nightlife; it's about creating a dynamic environment where young people thrive. The city's cultural events and vibrant atmosphere are key attractions. Young professionals are seeking not just jobs but a lifestyle that offers excitement and growth.
As more young people move to Yangon, the demand for urban living spaces is set to rise. The city's downtown area is becoming a hotspot for those looking for a lively and engaging environment. Yangon's appeal lies in its ability to offer both professional opportunities and a vibrant social scene.
Sources: UNDP, Insight Myanmar
11) Aging rural population will decrease demand for large family homes
By 2035, Myanmar will have more people aged 60 and older than children under 15.
As the population ages, fewer young families will need large homes. This shift is partly because younger folks are heading to cities for better jobs and living conditions. It's a trend seen in many developing countries, and in Myanmar, about 12% of households have internal migrants, while nearly 8% have international migrants. This means fewer young people are sticking around in rural areas to fill those big family homes.
Another factor is the drop in birth rates. Since the 1980s, Myanmar's fertility rate has more than halved, now at 2.25 children per woman. Smaller family sizes mean less need for large homes. As families shrink and younger generations move away, the number of multi-generational households is expected to decrease, further reducing the demand for larger homes.
In rural areas, this aging trend is even more pronounced. With fewer young people around, the demand for big family homes is dwindling. Instead, there's a growing need for smaller, more manageable living spaces for older residents. This shift in housing needs is something to consider if you're thinking about buying property in the countryside.
For those looking to invest in rural properties, it's worth noting that the market is changing. The focus is moving away from large family homes to smaller, more practical options. This could mean opportunities for those interested in developing or renovating properties to meet the needs of an aging population.
Understanding these trends can help you make informed decisions about property investments in Myanmar. As the population continues to age and urban migration persists, the demand for large family homes in rural areas is likely to keep decreasing.
Sources: HelpAge International, The Situation of Older Persons in Myanmar, Impacts of Migration on Households in the Dry Zone, Myanmar
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12) Mandalay rent prices will stabilize as new housing developments meet demand
Mandalay is buzzing with new housing projects, including a massive USD 184 million mixed-use development.
These developments are not just about buildings; they’re about attracting foreign investment and boosting local infrastructure. This means more homes are available, which helps keep rent prices steady.
The Myanmar Residential Real Estate Market is on the rise, with projections showing it could hit USD 1.38 billion by 2024. This growth is a clear sign that Mandalay is focusing heavily on housing, which is great news for renters looking for stable prices.
The government is also stepping in with public rental housing projects. These initiatives are not only improving living conditions but also creating job opportunities, which is a win-win for everyone involved.
With a stable job market, people in Mandalay can afford their rent without too much stress. This balance between jobs and housing is key to keeping rent prices from skyrocketing.
Sources: Construction Property, Mordor Intelligence
13) Rural rents will stay the same as urbanization pulls people to cities
People in Myanmar are increasingly moving from the countryside to cities like Yangon and Mandalay, seeking better job opportunities and higher wages.
Yangon's metro area has seen a steady population increase, growing by 1.78% from 2023 to 2024. This urban migration trend is quite noticeable as more individuals flock to these bustling urban centers.
Interestingly, the rural population hasn't changed much. In 2023, it was about 37 million, increasing by just 0.23% from the previous year. This indicates that while many are moving to cities, the rural areas aren't emptying out rapidly.
The government is heavily investing in urban development, focusing on infrastructure projects in major cities. This shift in resources means rural areas might see less investment, potentially affecting property values there.
With more attention and resources going to urban areas, rural property values could remain stable or even decline. This is something to consider if you're thinking about buying property in the countryside.
As urbanization continues, rural rents are likely to stay unchanged, making it an interesting time for potential buyers looking at rural properties.
Sources: Macrotrends, Lowy Institute, Macrotrends, World Population Review, World Bank
14) Demand for high-rise apartments will surge as urban land becomes scarce
In recent years, Myanmar's urban population has been steadily increasing, with more people choosing city life.
As more folks move to cities, land in urban areas like Yangon and Mandalay is becoming scarce, driving up prices. This makes it tough to build low-rise homes, so developers are leaning towards high-rise buildings. The government is on board too, pushing for high-density housing with public rental projects in key cities.
Real estate reports highlight a shift towards vertical living, with an 80.6% increase in new housing units from 2021 to 2023, many of which are high-rise condos. This trend is fueled by international investments, which often favor high-rise developments.
For those considering buying property, it's worth noting that high-rise apartments are becoming more popular as urban land becomes limited. This trend is not just about space; it's also about lifestyle, with many high-rises offering amenities that appeal to city dwellers.
In cities like Yangon, the demand for high-rise living is expected to grow as more people seek the convenience and benefits of urban life. This shift is reshaping the real estate landscape, making high-rise apartments a smart choice for future homeowners.
As urban areas continue to expand, the focus on high-rise developments will likely intensify, offering a modern solution to the challenges of limited urban space.
Sources: Mordor Intelligence, Krungsri Research, Macrotrends
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15) Bago will see a strong rise in property demand as industrial development speeds up
Bago is experiencing a boom in foreign direct investment, especially in its industrial sector.
In November 2023, Bago attracted a significant foreign investment project valued at $1.622 million, with an additional $7 million approved for an existing business. This is part of a larger trend from February 2021 to May 2024, where the region saw $200.115 million in foreign direct investments, creating 12,490 job opportunities.
The government is actively encouraging this growth by inviting investors to focus on manufacturing agricultural machinery, producing fertilizers, and setting up cold storage facilities. These efforts aim to enhance Bago's industrial capabilities and draw in more businesses.
As new factories and industries pop up, there's a growing need for housing due to workers moving to Bago. This influx is likely to push property prices higher. Plus, ongoing infrastructure upgrades, like new roads and transport links, are making the area more appealing to both local and foreign investors.
For those considering buying property in Bago, it's worth noting that the region is becoming a hub for industrial development. This means not only potential appreciation in property values but also a vibrant community with increasing amenities.
16) Eco-friendly homes will become highly desirable as environmental awareness rises
People are increasingly interested in eco-friendly homes as environmental awareness grows.
In Myanmar, the government is pushing for sustainable development with plans to build 1 million eco-friendly homes by 2030. This isn't just about policy; it's what people want. Nearly half of survey respondents are interested in sustainable housing, showing a shift towards eco-conscious living.
Local companies like Shwe Taung Group are stepping up by producing sustainable building materials locally. This reduces costs and environmental impact, setting a standard for others. The Global Green Growth Institute supports these efforts, emphasizing the importance of sustainable urban development.
Media coverage is also playing a role, highlighting the benefits of eco-friendly homes and educating the public. This makes sustainable living more appealing, especially with green building standards becoming part of national regulations.
Social media trends are amplifying this shift, making eco-friendly homes a significant change in how we view our living spaces. It's not just a trend; it's a movement towards a more sustainable future.
Sources: Meridian Allen Press, Shwe Taung Group, Global Green Growth Institute, National Association of REALTORS
17) Virtual reality tours will revolutionize property viewing and simplify buying for international buyers
Virtual reality tours are revolutionizing how people view properties, especially for those buying from abroad.
In recent years, over half of adults have tried a virtual tour, and a striking 67% of home buyers want this feature when looking at listings. This shows how VR is changing the way we explore homes from a distance.
Homes with virtual tours get 87% more views, and people spend 5-10 times longer on these sites. This means VR tours not only draw more attention but also keep potential buyers engaged, which is vital for international buyers who can't easily visit in person.
In Myanmar, the demand for property is rising, with 638 condo units worth 3.24 billion baht sold to Myanmar nationals in early 2024. VR tours make it easier for these buyers to explore options without traveling.
For international buyers, VR tours are a game-changer, offering a convenient and immersive experience that saves time and effort. This technology is especially useful when travel is restricted or time is limited.
As more people embrace virtual tours, the real estate market is adapting, making it simpler for buyers worldwide to find their dream home. VR technology is here to stay, transforming the property viewing process.
Sources: Times Property, Bangkok Post, PhotoUp
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18) Smart home technology will be standard in new developments attracting tech-savvy buyers
Smart home technology is becoming a must-have in new property developments.
In Myanmar, the digital landscape is rapidly evolving. By 2023, 52% of the population had internet access, and with over 30 million mobile subscribers, connectivity is on the rise. This surge in digital access is paving the way for smart home technology to become more appealing to tech-savvy buyers.
Smartphones are at the heart of this transformation. By 2025, 63% of the population is expected to use smartphones, which often serve as the control center for smart home devices. This growing smartphone adoption is fueling the demand for smart home products, making them an integral part of modern living.
Urbanization is another driving force. As more people move to cities, the home automation market in Myanmar is expanding. Developers are keen to include smart home features in new projects, offering benefits like convenience, energy efficiency, and enhanced security to meet the needs of modern buyers.
Media in Southeast Asia, including Myanmar, is buzzing about smart homes, raising awareness and interest. Partnerships between tech companies and real estate developers are making affordable smart home solutions more accessible in new housing developments, further boosting their popularity.
Sources: DataReportal, Internet in Myanmar, TBS News, Weber Shandwick, 6Wresearch
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.