Myanmar’s real estate sector attained foreign direct investments of US$3,111.451billion as of the end of November in the current fiscal year, according to the statistics of the Directorate of Investment and Company Administration (DICA).
In the same period, over US$690million of Myanmar citizen investments flowed into real estate development activities.
The real estate sector ranks fifth in the foreign investment sector, whereas the oil and gas sector is at the top of the list with an investment of US$22,410.368million. The FDI in the real estate sector constitutes 4.64 per cent of total foreign investments.
The power sector ranks second with investments of US$20,290.314million, followed by manufacturing in third place and the transport and communication sector in fourth place.
Foreign investments also go into mining, hotels and tourism, livestock and fisheries, agriculture, industrial estates, construction and other services.
According to the announcements of the DICA, foreign investments of permitted enterprises in the real estate sector were US$ 440.573million in 2013-2014, US$780.745million in 2014-2015 and US$728.680million in 2015-2016.
One third of the country’s population lives in urban areas, prompting authorities to implement numerous urban development projects. The real estate sector is thus required to improve and grow in line with the burgeoning urban population, experts said.
Most of Yangon residents stay in rented housing, so the rental market of real property is the most active. Plots of land in suburban areas are selling well.
The construction ministry is developing projects to sell fair-and low-cost apartments through a instalment plan via the Construction and Housing Development Bank. In addition, private developers have been found to sell their apartments under instalment plan.
The price of real property in Myanmar is skyrocketing as foreign investment in the country increases.