At the moment, the real estate

At the moment, the real estate in Myanmar is a seller's market. In fact, the Myanmar Review Research has released its 2012 survey about the increase in the real estate price inside Yangon. According to the report, the price of land has reached nearly five times more than in 2002. Actual prices regarding expatriate residential properties and corporate offices also increased quite aggressively within an 18-month research period by several real estate property experts.

Vacancies across Yangon nonetheless remain as one of the common issues came across by property buyers in the country. To cope with this concern, some companies take up temporary office locations. You will find others that opt to branch out to areas beyond the business districts while a few businesses decide to convert mansions situated in suburbs into office spots.

In Yangon, a huge percentage of private tenants from other countries have claimed of which their landlords' demand rent outdoor hikes that reached up to 300 percent including a payment upfront that is good for a year. Thus, renting a property that costs $1, 125 monthly (based on the one-year lease) would require at the least $63, 000 or so at the outset following the two-month deposit fee is included in the total amount.

It is interesting to note, though, that the massive rental together with lease fees of properties throughout Myanmar have not deterred major companies and foreign investors from preparing their companies in the country. However, there is a threat when it comes to the poor supply of high quality rental properties and accommodations for the purpose of expats.

There are a few major commercial in addition to residential projects that are expected to break up ground in mid-2013, which is going to relieve the increasing concern in supply. However, these projects are bound to be completed cash flow properties by 2015, and this leads to the conversion regarding some retail spaces to corporate offices to meet the demands of companies in the country.

Yangon's property crunch shows the technical difficulties that have followed the fast-paced reforms in the Myanmar. Behind significant breakthrough in the country like the revised foreign investment policy and fewer strict Western sanctions, serious considerations about Myanmar's real estate market continue to impact the nation.

Considering the existing near-exponential scenario in real estate market rates in Myanmar, prices are expected to rise for business and residential properties until 2015. But, this outlook still depends on the change process, security condition, outcome of the 2015 elections, and the continued diplomacy in the country.

For residential properties in the country, regional brokers claim that vacant apartments appear to stay on the market for a maximum length of three months. Furthermore, new tenants are no longer surprised about the doubling of residence costs each year. As the lease discussion process for residential properties begins, landowners are aware that they can quickly change their own asking price even on a daily basis.

Real estate experts agree that the primary cause of typically the rise in property costs in the country is definitely the increase in resale of virgin and even waste land to buyers who have no plans to invest in the producing sector or other in-demand assignments. Thus, the issue on the rising cost of real estate and land remains as being a challenge to the country's progress and even development.