- 1 Minute Read
- 31st July 2013
Burma Addresses Shortage of Office Space in Yangon
Burma is racing to build office space in Yangon, fearing a shortage will discourage foreign investors from selecting the commercial centre for an international hub.
The reform-embracing country is facing an influx of interest from multinationals following the end of a five-decade military rule.
Rental costs of the limited available space have increased multifold, surpassing per square foot rates of office space in New York City and Tokyo. It was yesterday reported that space in premier blocks was valued at $100 per square foot, making it one of the most expensive commercial districts in the world.
Shortage issues may not be alleviated for at least three years, according to a government report. Property developers are redoubling efforts to complete construction projects so not to dampen the projected economic rise in the area.
"Foreign investors are flocking here, but we have limited office space for them," said Presidential adviser Aung Tun Thet.
"This is a short-term problem, but we have to put up more buildings and release more land for construction in the medium-to-long term to cope with rising foreign investments. If not, these foreign companies will have problems investing in Burma."
8.7 million square feet is required to support the influx of foreign investors, but as little as 1.9 million square feet will be available by the end of 2015, according to Colliers International PLC.