About
Market trends and strategic insights across Yangon’s commercial, hospitality, and residential sectors for H2 2023
Summary & Recommendations
Thriving Through Market Turbulence
In the highly competitive office sector amid stable demand, landlords are expected to embrace flexible leasing options and incentives to retain tenants amidst business uncertainties, while the tenants should leverage the current landscape to negotiate favorable lease terms, exploring cost-effective Grade-B and Grade-C options.
Downtown shows growth potential with a scarcity of serviced apartments, prompting developers to consider their inclusion in mixed-use projects. To address the shortage of household expats in Yangon, landlords should focus on offering competitive one bedroom rental rates and enhance overall guest experiences by prioritizing personalized services and amenities. With domestic tourism destinations restricted, the Yangon hospitality sector is increasingly dependent on “staycations.” With high living costs in the city hindering leisure activities, our recommendation is for hotels to manage operational costs effectively and shift their focus towards offering attractive incentives for domestic guests.
Sales in low to mid-tier condominiums have shown remarkable growth in recent quarters. Despite broader economic challenges, the real estate market is anticipated to sustain interest.
