About
Market trends and strategic insights across Yangon’s commercial, hospitality, and residential sectors for H2 2022
Summary & Recommendations
Yangon: A Tenant-Driven Market Commercial rates have further adjusted downwards which buoyed overall take-up levels in 2022. Grade A offices have especially adopted more competitive rental levels, hitting new record lows, which in fact resulted in a slight uptick in the overall occupancy. Meanwhile, the average retail rent improved for the first time from a declining trend witnessed since 2019.
With foot traffic especially increasing towards F&B and entertainment, we expect the rate to improve, albeit at a modest single digit growth in 2023. This, as the economic condition remain less rosy, at least in the near term.
The ongoing forex challenges and the lack of investment opportunities among local buyers have started a more vivid shift towards purchasing land and other real estate properties as a form of storage of wealth. Prices have somewhat increase as way to hedge off the depreciation of the local currency.
We continually recommend landlords to remain flexible with their offerings yet also remain cognizant with exploring other opportunities to help buoy financial gains.
