Saturday, October 10, 2015

Urbanization in Myanmar to drive real estate market


Yangon will need around 75,000 new apartments to be built each year to accommodate the city’s growing population, but contractors are struggling to come anywhere close to this target.
More than 330,000 people migrate to Yangon each year from elsewhere in the country, but formidable challenges remain to building enough accommodation to keep up with the pace of urbanisation, Kyaw Kyaw Soe, associate secretary from the Myanmar Construction Entrepreneurs Association (MCEA) told The Myanmar Times.
Yangon has a population of 5.14 million, which increases by 6.6% each year, according to the MCEA estimates.
We have seen this time after time in the developing economies of the world. The movement of people from rural areas to urban areas. This trend will be no different in Myanmar as people move to the city looking for higher paying jobs. This will require more construction of apartments and infrastructure to support the larger population. This will lead to years of growth. I am moving Yoma Strategic Holdings from the watchlist to my investment portfolio as I am long term bullish on Myanmar and its 8-10% yearly growth.

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