Gor­don Brown

Sec­ond City Man­dalay Ripe for Real Es­tate Growth, says Study

Mizzima Business Weekly - - BUSINESS ALERTS -

Man­dalay is set to be the fo­cus of Myan­mar’s next property boom but growth will likely be slow, a study said. For­eign tourism has pro­vided the im­pe­tus for some ho­tel growth but there is a se­vere lack of of­fice space and de­mand for high rise con­do­mini­ums is low, said Myan­mar Busi­ness To­day quot­ing a sur­vey by property spe­cial­ists Col­lier In­ter­na­tional.

Al­though homes are 30 per­cent to 50 per­cent cheaper than in Yan­gon, of­fice ac­com­mo­da­tion costs are higher due to a lack of sup­ply.

“Man­dalay is be­gin­ning to at­tract both lo­cal and for­eign in­vest­ments. It is likely to play an im­por­tant role as the main sec­ondary com­mer­cial city in the coun­try with its dis­tinc­tive char­ac­ter and econ­omy,” the Col­lier’s study said, as quoted by Yan­gon busi­ness ad­vis­ers Con­sult-Myan­mar.

“The lack of in­ter­na­tional qual­ity devel­op­ments amid strong de­mand prospects sug­gests that the real es­tate mar­ket in Man­dalay is in a nascent stage, geared for ex­pan­sion.”

Given the avail­abil­ity of much de­vel­op­ment land there is a pref­er­ence to date for vil­las for pri­vate homes and this ex­plains a “re­luc­tance to em­brace the res­i­den­tial con­do­minium con­cept,” Col­lier’s said.

Re­tail space avail­abil­ity in Man­dalay is far be­hind Yan­gon and still lacks mod­ern fa­cil­i­ties.

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