Second City Mandalay Ripe for Real Estate Growth, says Study
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.