Real estate sector FDI approvals account for bigger share this year
MYANMAR’S real estate sector is receiving a far larger share of overall approved foreign direct investment (FDI) so far this fiscal year, according to data from the Directorate of Investment and Company Administration (DICA).
As of August 31, real estate had received 15 percent of total FDI, according to DICA. Across the whole of 2015-16 real estate accounted for just 7.7pc, the department said.
Total approved FDI in 2015-16 was US$728.6 million, of which 7.7pc was in real estate.
So far this fiscal year there has only been approved FDI in one real estate project, although the high level of investment – $105 million – means it accounts for a larger share of the total $701 million in approved FDI.
Officials from DICA said they will announce the details of that single project at a later date.
Seeking to lift building standards, Yangon City Development Committee recently suspended some high-rise projects in the city while it carried out inspections.
The Ministry of Hotels and Tourism has also asked regional governments to consider demand for hotels before approving any new projects in tourism hot-spots where they say there is an oversupply of accommodation.
“Real estate is still a developing sector in terms of both foreign and local investment,” said U Yan Aung, general director of Asia Construction. “It can be a good market given the high density population in downtown Yangon, although the market has cooled slightly in the last two years.”
Yet more was needed to ensure infrastructure was bought up to scratch, he said, while low-cost housing should also be a focus for the industry.
So far this year the real estate sector is the third-largest sector for approved FDI, behind the transport and communications industry with $112.1 million and manufacturing with $336.4 million, the data from DICA shows.
‘Real estate is still a developing sector in terms of both foreign and local investment.’
U Yan Aung Asia Construction