Commercial Real Estate - Myanmar | Statista Market Forecast

Myanmar is expected to experience significant growth in its Commercial Real Estate market market.
According to projections, the value of this market is set to reach US$72.57bn by 2024.
This growth is anticipated to continue with an annual growth rate (CAGR 2024-2029) of 3.24%, leading to a market volume of US$85.12bn by 2029.
In a global comparison, the United States is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
However, Myanmar's Commercial Real Estate market market is poised for substantial growth and has the potential to become a significant player in the global market.
Myanmar's commercial real estate market is experiencing a surge in foreign investment due to the country's liberalized economy and emerging business opportunities.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Myanmar has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Myanmar have shown a strong preference for commercial real estate properties, particularly in the retail and office sectors. The demand for retail spaces has been driven by the increasing consumer spending power and the growing middle class in the country. Similarly, the demand for office spaces has been fueled by the expanding business and investment opportunities in Myanmar.

Trends in the market: One of the key trends in the commercial real estate market in Myanmar is the rise of mixed-use developments. Developers are increasingly integrating residential, retail, and office spaces within a single development to cater to the diverse needs of customers. This trend is driven by the desire for convenience and accessibility, as well as the increasing urbanization in major cities like Yangon and Mandalay. Another trend in the market is the growing interest from foreign investors. With the liberalization of the economy and the easing of foreign investment restrictions, Myanmar has become an attractive destination for foreign investors looking to tap into the country's emerging market. This has led to an increase in foreign direct investment in the commercial real estate sector, particularly in the hotel and hospitality industry.

Local special circumstances: Myanmar's transition to a more open and market-oriented economy has created unique opportunities and challenges for the commercial real estate market. The country's infrastructure and regulatory framework are still developing, which can pose challenges for developers and investors. However, the government has been implementing reforms to improve the business environment and attract more investment, which has had a positive impact on the commercial real estate market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the commercial real estate market in Myanmar. The country's strong economic growth, driven by sectors such as manufacturing, construction, and services, has created a favorable environment for commercial real estate development. Additionally, the increasing urbanization and rising disposable incomes of the population have fueled the demand for commercial properties. In conclusion, the commercial real estate market in Myanmar is experiencing significant growth and development, driven by customer preferences for retail and office spaces, the rise of mixed-use developments, and the increasing interest from foreign investors. Despite local special circumstances such as infrastructure challenges and regulatory reforms, the underlying macroeconomic factors, including strong economic growth and urbanization, continue to support the growth of the market.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.