Notes about the Myanmar (Burma) construction sector.
• One of the catalysts for Burma’s growth is the construction sector, which grew at an average rate of 11.5% annually from 2007 to 2011
• There was a strong performance in the infrastructure and residential over 2007-2011. These sectors account for 78 % of total construction value.
• Construction industry was estimated at value close to $ 3 Billion US. There are expectations for the sector to reach $ 4.2 Billion US in 2016.
• During 2007-2011 the industry grew a CAGR of 11.5% in kyat terms and 25.4% in USD terms.
• Residential construction was the largest market in the Myanmar construction industry with a value of US$1.5B, and accounting for 51% of total Myanmar construction output in 2011.
• The average residential property price in Yangon has surged +39% during 2011-2012, increasing from US$61 per sqf (US$657/sqm) at the beginning of the year to US$85 per sqf (US$913/sqm)
• Construction sector average salary $ 130 US.
Average rent per month in Yangon for prime property:
• Apartment 1 br, city center: $570
• Apartment 3 br, city center: $970
Average apartment price per square meter in Yangon downtown: $1,230
For the past 20 years, local contractors have been involved in low-rise construction works. However, with the recent increase in demand for high-rise, grade-A buildings there is an acute shortage of contractors that are sufficiently qualified to carry out the work.
Did You Know?
In 2006 the capital of Myanmar was moved from Yangon (formerly Rangoon) to Nay Pyi Taw.