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.
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Neighbors often drop by unannounced. Guests are expected to compliment the host's house and/or kids. They are then invited to dinner and offered the best hospitality the host's family has to offer. ... More