Real estate in Myanmar?

Question

Anybody here have experience investing in Myanmar real estate? Seems like construction and condo building is going on everywhere. I'm here for a couple years and want to see what opportunities exist. I know that foreigners have some restrictions on what they can purchase, but I'd like to learn more.

Brian Ross · Answer

@Mike Warder - definitely, please do keep me in the loop. I'm very interested if you are able to track anything down. Good luck!

Mike Warder · Answer

Thank you @Bruce Lynn and @Brian Ross for your inputs. I share both of your concerns. On a macro level, no one can say for certain where Myanmar is going. On a more micro level, barriers to entry such as foreigner limitations on land ownership and what appears to be some overbuilding of luxury condos give me major pause. I just figured while I'm here I might as well see what opportunities there are. I'll keep you posted if anything significant occurs that changes my thinking.

Brian Ross · Answer

I spent much of 2016 living and working in Myanmar, and took a lot of time sourcing office space for my previous company. I probably saw 40-50 units - both commercial office spaces and houses that could be converted to office space. If you're already there, you're aware that rental prices are astronomical, but with all the construction in the past few years, I noticed prices leveling and landlords offering better terms. I imagine that will continue, especially with ASSK's government struggling to implement solid reforms and the Rohingya issue not going away. Power grid infrastructure, as I'm sure you've experienced, is not great, but there are some plans in the pipeline to improve it...who knows how long that will take, but it will have to improve eventually if the govt is serious about attracting FDI.

I thought about the possibility to invest in property, but didn't get serious enough to look too deeply into regulations that restricted foreigners from owning. I believe some of those regs are relaxing at the moment with the condo law, as @Bruce Lynn pointed out. He is also right about the hundred other places with less risk. If the govt can't institute basic reforms that would clearly benefit the country and provide protection for investors, and at the rate ANY legislation is going...it'd have to be an extremely solid deal with extremely trusted local partners to make it worth considering!

Bruce Lynn · Answer

As far as I've heard foreigners cannot buy land, homes, condos, etc in Burma.  Foreigners can lease, probably with a lot of restrictions.  At some point they were working on condo law for foreigners.  I can imagine it might look like Thailand condo law, where foreigners can purchase up to 49% of the condos in a building.

My first thought is there is a lot of risk.....lots of things changing.   Probably 100 other places with much less risk to buy.

Buy what you know.  That's the Warren Buffet way to get rich.  Speculating is a great way to loose money in real estate and other investments.  Be wary of people who think they can get around the law.  Sometimes it works, but often times it doesnt.  People have lost investments in Mexico and Thailand and probably other places too.  Sometimes it is tolerated until the next government power comes in, and they decide to enforce to the letter of the law.   To me forming a company to own land, giving a citizen 51% of the company to be legal, but foreigner voting control or some other way to skirt the law is in fact skirting the law.   So you might be able to set things up or someone convinces you they know a way around the law...but you can have everything confiscated after the next election.   Occasionally some of these types of governments even want prison time and fines for trying to skirt the law, not just land confiscation.