All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Yangon's property market is included in our pack
Considering buying real estate in Yangon? You're not alone!
Many people are drawn to Yangon's exotic allure and fantasize about owning a stylish apartment or a comfortable villa there.
Is it financially viable, though? Are property prices increasing in Yangon? Is it expensive? Is it more profitable to buy in Downtown or Bahan? Is there any hidden tax? Which place will give me the best yields?
We have all the answers you need.
The BambooRoutes team knows this market like the back of their hand. Actually, we have condensed all our findings in a pack. Get it now.
In this article, get ready to receive valuable insights from us.
How is the real estate market in Yangon?
Is the property market showing growth or decline? Let's analyze the latest data and statistics.
Types of properties
In Yangon, there are various types of properties available for sale.
These include apartments or condos, which are individual units within larger buildings and often come with shared amenities; houses, which are standalone dwellings with their own outdoor spaces; commercial properties like shops and offices for business purposes; and land for those looking to build their own structures.
Each type of property offers different features and benefits, catering to a range of preferences and needs among buyers in Yangon.
Should you buy or rent?
(If you want to live there yourself and not rent it to others)
Whether you're considering settling in Yangon or already living there, you might be pondering the buy vs. rent decision in this dynamic city in Myanmar.
Without a doubt, you should buy if you want to acquire equity and have more control over the property.
One data can help you make a decision - the property price-to-rent ratio. It's like a measure of how much rental income you'll need to afford the property at its current value.
According to Numbeo, the property price-to-rent ratio in Yangon is around 6.51, which is one of the lowest in the world.
It means that, on average, you would only need 7 years of rental payments to actually purchase a property. You plan on staying that long? Go for buying.
Housing prices in Yangon
On average, according to the last data from Ministry of Planning, Finance and Industry, purchasing a property in Yangon will cost you around $1,140 per square meter.
It's evident that there are significant disparities. An apartment in the city center of Yangon might have a different price per square meter than a suburban house. You'll get a more detailed in our pack for buying property in Yangon and in Myanmar.
To give you a better idea, it means that, instead of buying an apartment in a big city like Paris, you can afford 12 properties in Yangon.
Also, housing prices in Yangon are WAY cheaper (-80%) than in Bangkok.
The most expensive neighbourhoods in Yangon are probably Bahan, Kamayut, and Mayangone, while the cheapest neighbourhoods are likely Mingalar Taung Nyunt, Insein, and South Dagon.
Trends
First you have to know that Myanmar does not possess the stability required to be classified as a stable country today. The last Fragile State Index reported for this place is 68.6.
Keep this in view when pondering the viability of buying a property in in Yangon.
Besides that, if we look at the IMF's GDP forecasts, Myanmar's economy is expected to soar by 11.8% in the coming 5 years, resulting in an average GDP growth rate of 2.4%.
If you want to invest in real estate in Yangon it's a good thing because, when people experience an increase in wealth, it typically translates to a surge in housing costs.
Also, in Myanmar, the average GDP per capita has dropped by 9.5% over the last 5 years. It is a concerning and unsettling statistic.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Myanmar right now.
Buying property in Yangon
Buying real estate in Yangon can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Yangon and in Myanmar.
Buying process
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in Yangon:
- Research property market and familiarize with Yangon's specific foreign ownership restrictions.
- Engage a licensed real estate agent with experience in Yangon properties.
- Find suitable properties and visit them, considering factors like location and infrastructure.
- Negotiate the price and terms with the seller, mindful of Yangon's property market trends.
- Sign a Letter of Intent (LOI) and pay a deposit, usually 5% to 10% of the property price.
- Hire a local lawyer to conduct due diligence and verify property ownership and title.
- Prepare and sign the Sale and Purchase Agreement (SPA) with the seller.
- Pay the agreed-upon deposit, which is typically around 30% of the property price.
- Obtain the necessary approvals from the Yangon City Development Committee (YCDC) and other relevant authorities.
- Transfer funds to Myanmar through official banking channels for the property purchase.
- Complete the property transfer at the Yangon Region Land Registration Office and obtain the Form 7, which is the official acknowledgment of property transfer.
- Apply for the Form 105, which is the official title deed that confirms your ownership of the property in Yangon.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Myanmar.
Make a profitable investment in Yangon
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Where to find a property
If you're seeking properties in Yangon, these websites offer a variety of options:
- Expat - Expat is a housing platform for Myanmar, where you can buy, sell, or rent properties including houses and flats in different locations.
- Shwe Property - Shwe Property is Myanmar's premier online real estate group, providing a comprehensive platform for buying, selling, and renting properties nationwide.
- FazWaz - FazWaz is Myanmar's leading real estate marketplace, offering a diverse range of properties for buying, renting, and selling.
- iMyanmar House - iMyanmar House stands as the No. 1 online platform in Myanmar for buying, selling, and renting properties.
- Myanmar House - Myanmar House is a real estate website facilitating the selling, buying, and renting of properties throughout Myanmar.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Myanmar.
Which properties for which budget?
As mentioned before, the average price per sqm in Yangon is $1,140. The cost of a one-bedroom property (60 sqm) is about $68,000, and a two-bedroom (85 sqm) would be around $97,000.
However, prices will change based on both the property itself and its location.
Prices are higher in the upscale parts of Yangon. A house in Golden Valley could be around $220,000, and a residence in Bahan might cost about $260,000.
Yet, there are places that are easier on the wallet. You could find a condo in Hlaing for $40,000 or a condo in North Okkalapa for only $30,000.
We give a more detailed breakdown in our full pack for buying property in Myanmar.
Risks and pitfalls
Here are the main pitfalls specific to buying property in Yangon, Myanmar:
- Complex land tenure system: Traditional and informal land ownership practices can lead to disputes and unclear property titles.
- Foreign ownership restrictions: Foreigners face limitations on owning land directly, often requiring complex lease agreements with local partners.
- Political instability: The country's volatile political climate can impact property rights and investment security.
- Inadequate infrastructure: Yangon's outdated infrastructure can affect property value and livability, with unreliable utilities and transportation systems.
- Slow approval process: Lengthy bureaucratic procedures for permits and approvals can delay property development and transactions.
- Elevated corruption risk: Dealing with corruption during property transactions can lead to financial losses and legal complications.
- Currency exchange challenges: Fluctuations in the kyat can impact financing costs and create uncertainty for non-resident buyers.
- Hidden costs: Unanticipated fees and taxes can arise during the buying process, increasing the overall cost of property acquisition.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Myanmar Property Pack
Living in Yangon
Living in Yangon is a mix of modern city life and traditional Burmese culture, making it an ideal place to buy property.
Cost of living
The cost of living in Yangon is generally considered to be lower than in other major cities in Southeast Asia, although the prices of basic goods and services have been increasing in recent years. The cost of rent is generally lower than in other cities, but the cost of food and other daily necessities is still relatively high.
Here are some examples to better understand the cost of living in Yangon, Myanmar:
- Traditional Myanmar tea (Laphet-yay): $1 at a local teahouse in Chinatown.
- Rent for a one-bedroom apartment in Bahan Township: $600/month.
- Mohinga (traditional Myanmar fish noodle soup) for two at a street vendor: $10.
- 1.5-liter bottle of Myanmar Beer: $2 at a supermarket.
- Electricity bill for an 85m² apartment using Yangon Electricity Supply Board: $90/month.
- Monthly membership at Powerhouse Gym in Yangon: $45.
- Ticket to a movie at Junction City Cinemas: $8.
- Thanaka, traditional Myanmar sunscreen (100g): $5 at a local market.
Neighbourhoods
Since we aim to present information clearly and in a reader-friendly manner, we've created a summary table outlining the various neighborhoods in Yangon. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Yangon Downtown | Yangon Downtown is the central business district and historical heart of the city, featuring colonial-era architecture, bustling markets, and a mix of modern and traditional businesses. | Rich history, vibrant markets, central location. | High traffic, limited parking. |
Bahan | Bahan is a residential neighborhood with tree-lined streets, offering a peaceful environment, and it's home to famous pagodas like the Shwedagon Pagoda. | Tranquil surroundings, proximity to pagodas. | Limited commercial activities, high property prices. |
Sanchaung | Sanchaung is a bustling area with a mix of residential and commercial spaces, known for its diverse food scene and accessibility to major parts of the city. | Food variety, good connectivity. | Noisy, crowded streets. |
Hlaing | Hlaing is a suburban neighborhood with a mix of residential and industrial zones, offering more affordable housing options and a growing number of commercial establishments. | Affordable housing, developing commercial areas. | Heavy traffic, pollution. |
Kamaryut | Kamaryut is a primarily residential area, home to the Yangon University campus and several educational institutions, making it popular among students and academics. | Educational institutions, peaceful environment. | Limited nightlife, fewer entertainment options. |
Mayangone | Mayangone is a diverse neighborhood with a mix of residential, commercial, and institutional properties, and it houses the Yangon International Airport. | Close to the airport, mixed-use spaces. | Noisy due to airport activity, traffic congestion. |
Insein | Insein is a lively area with local markets, shops, and cultural attractions, and it's well-connected through the Insein Train Station and public transport. | Cultural attractions, good transportation links. | Congested roads, limited modern amenities. |
South Okkalapa | South Okkalapa is a residential and industrial area with various factories and workshops, providing employment opportunities and affordable housing choices. | Employment opportunities, affordable housing. | Industrial pollution, lack of green spaces. |
Life in Yangon
Yangon is the commercial and economic hub of Myanmar, and has seen rapid economic growth in recent years due to increased foreign investment and a growing tourism industry. The city has seen a surge in the number of new businesses, real estate developments, and infrastructure projects, which has helped to drive the city's economic growth.
What expats usually like the most in Yangon is the city's vibrant nightlife, with plenty of bars, restaurants, and live music venues, as well as its colonial-style architecture and historic sites.
A good point for a property investor - there is a mass rapid transit system in Yangon, known as the Yangon Rapid Transit System (YRTS).
A negative point: access to healthcare in Yangon is limited and of varying quality.
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Renting out in Yangon
If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.
Long-term
Tenant Profiles in Yangon
According to the data reported by Wikipedia, the home ownership rate in Myanmar is 86%, which is rather high.
It is probably a bit less in Yangon which is quite different from the rest of the country.
If you decide to buy and rent out to long-term tenants, you should target expatriates, business professionals, students, and young families who are looking for a safe and affordable place to live in Yangon. If you are looking to rent out to short-term tenants, then you should target tourists and business travellers who are looking for a comfortable and convenient place to stay while in the city.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Condo in Downtown Yangon | Expats, professionals | Central location, modern amenities | $800 - $1500 |
Apartment in Bahan Township | Families, local professionals | Residential area, access to schools | $600 - $1000 |
House in Insein Township | Large families, locals | Spacious living, suburban feel | $1000 - $2000 |
Studio in Kamayut Township | Students, young professionals | Affordability, proximity to universities | $300 - $600 |
Apartment in Hlaing Township | Professionals, expats | Access to business districts | $500 - $1000 |
Condo in Ahlone Township | Business travelers, expats | Riverfront view, modern amenities | $700 - $1200 |
Apartment in South Dagon Township | Local families, middle-income | Quiet living, budget-friendly | $300 - $500 |
Rental yields
These days, Yangon presents attractive opportunities in terms of rental yields. In fact, you can easily achieve yields above 9% due to the high demand for rental properties in the city, coupled with low vacancy rates and reasonable pricing.
In Yangon, rental yields tend to be highest for residential apartments located in city center areas, as these areas have higher population density and are in high demand for rental properties. Additionally, rental yields tend to be higher for older, lower-cost properties due to their lower purchase cost and higher rental rates.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to digital nomads, business travelers, and expats looking to spend some time in Yangon. Additionally, tourists looking to explore the city for a short period of time are potential tenants for short-term rental in Yangon.
If you decide to go with that option, look for properties in the downtown area of Yangon, such as Botahtaung Township and Kyauktada Township, which are popular with tourists and expats. Additionally, the Bahan Township and Mayangone Township are also great areas for short-term rental properties.
Is it worth buying real estate in Yangon then?
Buying property in Yangon can be a smart move if you're looking to settle down in this dynamic city for the long haul or seeking high rental yields as an investor. The property price-to-rent ratio in Yangon is quite low, meaning you can potentially own a property after just a few years of rental payments. It's a financially appealing choice for those who value property ownership and equity building.
Additionally, rental yields above 9% in Yangon make it an attractive destination for investors, particularly in city center areas with strong demand. However, be prepared for the complexities of the market, including land tenure issues, foreign ownership restrictions, and political instability. Thorough research and professional guidance are essential.
On the flip side, if you're not planning to stay in Yangon long-term or are looking for quick profits, buying property might not be the best idea. The market's complexity and risks, such as unclear property titles and changing government policies, can make short-term gains challenging.
Also, if you're not ready for the responsibilities of managing short-term rentals, like marketing and maintenance, it may not be a suitable investment. Ultimately, Yangon's property market can offer significant rewards for those willing to commit for the long haul or navigate the market complexities with care, but it may not be the right choice for those seeking quick returns or not ready to tackle the challenges of this unique real estate landscape.
Make sure you understand the real estate market in Yangon
Don't rush into buying the wrong property in Myanmar. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.