Building contruction and housing sector in myanmar 2014

The Republic of the Union of Myanmar
The Current Situation and Future Trend
of
BUILDING CONSTRUCTION
and
HOUSING SECTOR
in Myanmar
U KHIN MG THEIN
Chief Engineer (Buildings)
Public Works, Ministry of Construction
Myanmar
March 2014
Ministry of Construction
1
GOALS
Building Sector
• To achieve safe and quality built environment in Myanmar
Housing Sector
• To upgrade living standards and provide adequate housing
for all the citizens
2

BUILDING CONSTRUCTION IN MYANMAR
CLASSIFICATION OF BUILDINGS
1. Assembly
2. Business
3. Educational
4. Factory and Industrial
5. Hazardous
6. Institutional
7. Mercantile
8. Residential
9. Storage
10.Utility and Miscellaneous
Ref: 2012 MYANMAR NATIONAL BUILDING CODE (Provisional)
Most of the Large Scale Buildings had previously been constructed
by the public sector, mainly by the Public Works. 3
Building Airfield
Public Works
Bridge
Department of Human
Settlement and Housing
Development
4

Some Buildings Constructed by the Public Works
Before 2011
Construction and Maintenance
of Large Scale and National Level Buildings
5
Regulating Building Construction
• Professional Regulatory Authority for
Engineering
• Professional Regulatory Authority for
Architecture
• Myanmar Engineering Council Law passed
•Myanmar Architect Council Law in drafting
and approval stage
• Provisional Myanmar Building Codes issued
•Updating Analysis of Rates
Undertaking Building Construction
After 2011
Undertaking and Regulating Building Construction
6
Architectural, Structural, Water and
Sanitation and Electrical Drawings as well
as Construction carried out by the Public
Works .
Architectural, Structural, Water and
Sanitation and Electrical Drawings prepared
and issued by Public Works, however
Construction Tendering and Management
undertaken by relevant Ministries.
Design Coordination, Construction
Management and Quality Control
undertaken by the Public Works

Envisaged Future Role in Building Construction
Cost verification and approval of buildings to be constructed with the
Government Budget
Setting, Controlling and Approving Internationally acceptable Standards
and Specifications for Buildings to be constructed with Local and Foreign
Investment
Preparing and Issuing Architectural, Structural, Water and Sanitation
and Electrical Drawings and Quality Control in construction of the
projects when assigned by the Government
Need for Construction Industry Law
Designated Building Construction Authority
7
Setting Standards and Regulating
Design Stage
- Setting and Regulating Building Standards and Specifications
- Setting Standards and Regulating Building Materials
- Setting Standards and Regulating Human Resources
Construction Stage
- Setting Standard Procedures and Regulating Building
Construction
- Setting Standards and Regulating Safety Measures in
Building Construction
- Setting Standards and Regulating Human Resources
8

Pioneering Modern Technologies
Technologies for Mass Production
- From Cast in situ construction method to prefabricating
( precast or factory production)
- Other Mass Production Technologies
Upgrade to high technology
- Precast
- Prestressed
- Postension
- etc.
Needs
- Quality Building Material Provision
- Technical Knowhow
- Capacity Building of Human Resources 9
Key Challenges in Building Construction
• Expected boom in building construction due to opening
up of the economy
• Lack of competent regulations and quality control of
building design and construction
• Lack of legal system in construction industry
• Lack of Designated Building Control Authority
• Need to upgrade Building Technology
10

HOUSING SECTOR IN MYANMAR
Public Works Department of Human
Settlement and Housing
Development
11
HOUSING PROVISION IN MYANMAR
High Income
Middle
income
Low Income
Upper-middle and high income
households live in housing built by
themselves or built by the private sector
Middle income households often occupy
formal, but low quality housing
Low-income households live in slums
and squatter settlements, or in low-cost
rental housing; the informal sector is the
main provider
12

Shelter/Space
Local needs
Satellite Town
Development
Satellite Towns ,
Industrial zones &
Housing
Development
Traditional 1920-1947 1950-1970 1980-2000 2000-2011
Colonization
& Urbanization
Public Housing
Social needs
1951 NHB Act
DHSHD
(1990)
Housing Department
(1972) Private Sector
Market
Orientation &
PPP in Housing
Post-Independence
Pre-Independent
Participation in
Housing Delivery
Lack of Housing Policy for Low income people and Rural Housing
Un-sustainable Provision and Delivery System in Public Housing
Lack of integrated Land use and Transport Planning
13
Key Challenges in Housing Development
• Expected growth of population from around 60 million to
around 90 million by the year 2040
• The housing market is expected to grow continuously in
the near future.
• Increase in housing demand due to
• increase in per capita income and saving capacity
due to the national development projects and
changing political and economic situation;
• increase of foreign investment in industrial and
service sectors as well as agricultural mechanization
resulting in more urbanization.
14

Myanmar Urbanization
• Size of Main Cities
• Yangon= 5.9 million
• Mandalay= 1.5 million
• Naypyitaw= 0.9 million
• 27 Cities= over 0.1 million
(Urban Poverty rate = 22%)
Myanmar
Center of interest for
the international investor
National Population growth rate=1.3%
Urban population growth rate= 2.9%
Rural urban ratio= 68: 32
Source: UNHabitat, CSO.
• With around 12 million households in Myanmar,
calculated at household size of 4.7, an annual demand
for housing is around 300,000 units.
• Development of sustainable housing financing
system;
• Resource development in modern building
materials, construction technologies, machineries,
equipment and promotion of construction industry
for mass production of housing.
16
Key Challenges in Housing Development

Housing Policy
Housing Development Strategy 4: Development of adequate and
affordabelhousing delivery systems
Programmes:
(1) Developing and carrying out adequate and affordable
housing delivery schemes in cooperation with region and
state governments;
(2) Promotion of modern building materials and mass
production construction technologies for housing
delivery;
(3) Cooperation with region and state governments in
allocation of reserved project land for public housing and
staff housing to be implemented in future in line with the
National Housing Policy;
17
Housing Development Strategy 4: Development of adequate and
affordabelhousing delivery systems
Programmes (contd.):
(4) Carrying out pilot housing projects allowing low income
groups ownership of housing through housing loans and
cross subsidy systems;
(5) Carrying out estate redevelopment schemes of over aged
public housing and staff housing estates through public
private partnership system (PPP) to be implemented in
cooperation with region and state governments;
(6) Systematic production of affordable housing units by
various sectors such as government organizations, co-operatives,
public and private sectors within 2013-2014 to
2030-2031 budget years;
18

Housing Policy
GOALS AND STRATEGIES OF
• To provide affordable housing for middle and low-income groups throughout the
BUILDING AND HOUSING SECTOR IN MYANMAR
country.
• To establish housing finance mechanism to promote affordability and house
ownership for the people.
To upgrade living standards and provide adequate housing for all the citizens.
• To promote construction industry development and mass production techniques
minimizing construction cost and time.
• Cooperation with regional governments in implementing large scale public housing
and low cost housing projects through urban development approach.
• To draft required laws and regulations ensuring provision of safe and adequate
shelter.
– Building Codes
– Condominium Act
– Spatial Planning Law
– Housing Development Law
19
Housing Demand and Supply
In Yangon, 36,000 Housing Units have been built from 2005
to 2010 for 5 years and , average 7,200 units of housing
were produced annually.
The demand for housing is 3.5 times of provision during
last decade while average increased households per year is
about 26,000 to 30,000 .
> 70% of Residential units are produced by the private
sector and much more profit orienting and targeting on
high income group.
Mandate on Housing Policy and Housing Provision (social
as well as market demand) is essential for balanced and
sustainable growth of socio-economic development

Housing Provision by Public Sector
30% of City population is living in slum and squatter
which is needed for improvement of living standard as
well as proper housing solution
Most important gap is very high cost for housing and
people’s affordability of very low income level
Government sets the priority focus on affordable and low
cost housing provision
Housing Mortgage and Financing Mechanism is now
established and planning to be practice
Promotion of Construction Industry and its development
and establishment of Myanmar CIDB for quality building
Enactment of Legal framework for Building and Property
market development
MAIN PROVIDER - DHSHD’S Housing Delivery
.
Excess housing demand induce
housing price increase.
2013-2015 Targeted Production
Affordable Housing 20,000
Low Cost Housing 3000
Urban Redevelopment
9000
Housing
Total Unit -53,816 no. (1993-2012)
Targeting on Low-Middle income group

Affordable and Rental Housing Scheme
20 years Long-term Development Plan in Housing Sector
(2011-2031) - one million housing scheme
2013-2016 – 100,000 Housing Scheme
Location - Regions/State’s capital cities & secondary towns
Target Group - Priority for government servants and low-income people
Delivery - income level & status accordingly
Financing - Housing Mortgage Loan for 20 years
- Housing Financing System ( Bank, Finance Institution)
Investment - Government Budget/ Revolving Fund/ PPP & Loans, grant
Planning – Township Development with neighborhood concept
Infrastructure - water, sanitation , electricity supply, waste management,
road & drainage
Operation & Management – DHSHD + ward council + community 23
Rental Housing Scheme in Regions and States
Government Rental Housing for Government Servants
Capital cities - 2000- 2500 units /years (average)
Government Budget
Housing Estate Redevelopment Scheme
Old Housing Estates (DHSHD)
10 Housing Estates in Yangon (450 acres)
3 Housing Estates in Mandalay
29 Housing Estates in Other Cities
Redevelopment Program through PPP
Proposed redevelopment project at
Botataung Housing in CBD
Proposed redevelopment project at
Shwegon Housing
24

Proposed Yangon City Urban Development Plan . DHSHD. MOC
Yangon City Concept Plan (2040)
YANGON CITY
ECONOMIC HUB & DEVELOPMENT POLE
Area - 598.75 sq-km
Population (2010)- 5.0 - 7.023 million
Population (2040) - 10 – 12 million
Growth Rate - 1.69 % (2010)
Housing Development Plan (2040)
Designate Development Promotion Area
in Smaller Urban centers around Yangon
Urban Densification Area through
Upgrading
Existing Estate Redevelopment Area
Source: DHSHD.MOC
Housing Estate Redevelopment Scheme
U Wizara, Dagon
51th Street, Botataung
Pyinmapin, Mingaladon
Gyogone, Insein
Pyitawthit, Pazuntaung
Yankin
Shwegondine, Bahan
Kantawkalay,
Mingalataungnyunt
Wayluwun, Sanchaung
Thuwuna
• Public Rental Housing Estates
• 10 Housing Estates in Yangon (450 acres)
• 3 Housing Estates in Mandalay
• 29 Housing Estates in Other Cities
• Redevelopment with the participation of private sector.
• Mixed development for residential and commercial to utilize scarce and valuable land
effectively.
• 2013-2015 , 10,000 housing units are planned to produce.

HOUSING PROJECT IMPLEMENTING AND PLANNING
by DHSHD & YCDC THROUGH PPP(2013-2015)
PLANNED HOUSING PROVISION OF DHSHD
Type of Housing Project
(no) Unit(no) Location
Low Cost
Housing 7 11868
Shwe Lin Pan,
Hlaing Tharyar
Mingalardone,
DagonSeikkan
Dagon East
Affordable
Housing 7 26142
Pilot Project(19600)-
Dagon Seikkan
Hlaing tharyar, Dagon
South
Shwe Pyi Thar
PPP Project (DHSHD)
Type of Housing Project
(no)
Unit(no) Location
Estate
Redevelopment
(PPP)
2 632
3529
Link Road
Botahtaunghousing
COMMERCIAL
350000 sq ft
181440 sq ft
Other (PPP) 30
7 407
Mingalartaungnyunt
BotahtaungTimesquare
Hletan, Thanlyin,others,
CBD
Total 42578
HOUSING PROJECT DEVELOPED BY YCDC (2013-2015)
50,000 Housing Units Production
Rental Housing Scheme in Estate Redevel Roepgimones anntd SStactheseme. DHSHD
Resettlement for existing rental units
Development of condominium and
Commercial
PPP project with Local Developer
Botataung Housing Redevelopment Project
in 51ST Street CBD
High Restriction and Development Control Zone
Near Shwe Dago Pagoda
Existing Rental Housing Unit -40 no.
New Development Unit -100 no.
Estate Redevelopment Project at Link
Road, Shwegon Housing
EXISTING HOUSING ESTATE (1956)

1. Area – 220 Acres
(89.03 Ha.)
2. Parcels – 11 Nos.
3. Buildings – 49 Nos.
4. Floors – 18 Storeys
5. Units/Bldg – 400 Nos.
6. Total Units – 19600 Nos.
7. Unit Area – 600 sft
8. HH size – 4.5 p /hh
9. Population – 88200 p.
• School
• Sports Ground and Recreation Places
• Market and Commercial
• Bus Terminal with Commercial Shops
• Car Parking
• Clinic, Police Station, Fire Station etc.
• Physical Infra
• Waste water Treatment
Ayeyarwun and Yadanar Housing Project
29
SatetaraMahi Estate Redevelopment Project, Mandalay
(1) 4U 8S Apartment Building - ( 5 ) nos
(2) 4U 9S Condominium Buildin - ( 6 ) nos
(3) 1U 4S Showroom& Office - ( 5 ) nos
(4) 3 Storeyed Admin Building - ( 1 ) nos
Total 417 housing and Shophouse units
Total Floor Area - 528310 sq.ft

CURRENT SITUATION – PRIVATE SECTOR
Driving Demand for Quality
Under Supply on appropriate Residential and Commercial property
market
Shortage in High Quality Development (quality offices, apartments,
hotels, and retail spaces are all in short supply)
Undergoing rapid transformation, including inflow of international
investment
Significant demand for Land and quality space in Yangon
Developers are focus on high-end projects in Yangon
Flight for changes of Quality in the Real Estate Market
Need for enactment of Legal framework for property market
development
LIST OF HIGH –RISE BUILDING SUBMITTED TO CQHP(2013-2014)
SOURCE:COMMITTEE FOR QUALITY CONTROL OF HIGH RISE BUILDING CONSTRUCTION PROJECTS
No Project Storey company Location
1 Pyay Garden Office Tower 1+11 Ze Ga Bar Sanchaung
2 United Tower 10 12 United Construction Bo Ta Htaung
3 AMBO Tower (Bo Aung Kyaw) 12 Naing Group Kyauktada
4 U Myint Thein+1 10 Yadanar Myaing Latha
5 Diamond Tower 12 Yadanar Myaing Pabedan
6 Lucky Condominium 12 Naing Group Bogyoke Street
7 M.T.P Kamaryut Tower 11 MTP Constriction Kamayut
8 Aye Yeik Thar Condominium 1+10 Tet Lann Construction Bahan
9 City Shine Tower 12 City Shine Construstion Kyauktada
10 Classic Stand Condominium B+12 Naing Group Pabedan
12 Bo Soo Pat Building 12 Yadanar Myaing Pabedan
13 Pansodan Business Tower 12 1/2 Naing Group Kyauktada
14 Hnin Si Gone Condominium 12 1/2 Naing Group Alone
15 Shine Tower 12 Shine Min Ga Lar Taung
Nyunt
16 Kyaw City Tower 12 1/2 Kyaw City Kyauktada
17 Kyaw Condominium 12 1/2 Motherland Kyauktada
18 Myanmar Shweoudaungmin 12 1/2 Myanmar
Shweoudaungmin Pabedan
19 Hotel Shwe Gone Daing 2+12 1/2 December Shwe Gone Dine
20 Strand Condominium 12 1/2 Golden Flower Latha
21 United Vision Tower 12 Shwe Mee Thee Shwe Bone Thar
22 Green Lake Condominium 2+12+P Yadanar Myaing Min Ga Lar Taung
Nyunt
23 3rd Street Condominium 12 1/2 Naing Group Lamadaw
24 Lanmadaw Tower 12 1/2 Myanmar Top Power Latha
26 MEI Business Tower 12 1/2 Fatherland Kyauktada
27 Uniteam Project 12 Lay Thi Sanchaung
28 Anna War Min Tower 2 12 Anna War Min Latha
29 Ngwe Gant Gaw(Lanmadaw
Tower) 12 1/2 Shwe Naing Ngan Latha
30 19th street Project Tet Lann
Construction Kan nar street
31 30th street Project 12 Naing Group Shwe Bone Thar
32 Hman Cho 12 1/2 Naing Group Pabedan
33 Mandalay Street & Bo Min
Young St Project B+12 1/2 Naing Group Min Ga Lar Taung
Nyunt
34 M & A Office Tower {B(2)+17}And
{B(2)+7}
Myint& Associate
Company Kamayut
35 KBZ Residence 11 1/2 Majestics Kamayut
36 Corner of Shwe Bone Thar&
Anawyahtar St 12 1/2 Naing Group
Corner of Shwe
Bone Thar&
Anawyahtar St
37 Khon Zay Tan Tower 12 1/2 Arkar Kyaw Family
Group Con Zay Dan St
38 Shine Business Tower B(2)+12 Shine Min Ga Lar Taung
Nyunt
39 Pacific Hotel B+12 Yadanar Myaing Min Ga Lar Taung
Nyunt
40 Soe San Tower 12 ½ Soe San Bo Ta hatung
41 Star City 12 Than Lyin Estate
Development
Near Thanlyin
Bridge
42 No.227/229,Seik Kan Thar
Street 12 1/2 MTM Kyauktada
43 Shwe Gone Daing Hotel(2).
Bahan B(2)+21 December Bahan
44 Hill Top Condominium 16 Shwe Taung Alone
45 12 Stories Building 12 1/2 Motherland Kyauktada
46 Orchid Condominium B(2)+22 Taw Win Alone
47 DEC Tower (A) 27 MGW Bahan
48 PME Tower B+12+Open
Shed
Peace Myanmar
Electric Alone
49 30th street B+12+P Naing Group Pabedan
50 Sedona Extension B+30 Straits Green Field Yankin
51 Twin Centro Condo 15+Mezzanine
Floor
Shwe Taung
Development Sanchaung
51 DEC Tower (A) 27 MGW Bahan
52 B(2)+18 M & A Kamayut B(2)+18

LIST OF HIGHRISE BUILDING SUBMITTED TO CQHP(2013-2014)
SOURCE:COMITTEE FOR QUALITY CONTROL OF HIGH RISE BUILDING CONSTRUCTION PROJECTS
53 Kanbawza Tower(KBZ ) B(3)+16 1/2 Naing Group Sanchaung
54 Diamond Inya Palace R.C.C (35) Mandalay Golden
Wing Ma Yan Gone
55 Traders Square B(2)+20 Mandalay Golden
Wing Kyauktada
56 Malikha Condominium R.C.C (12 1/2) Shwe Taung
Development Thingankyaun
57 DB Housing B+12 1/2 Shine Pabedan
58 Hotel Alinker(Jasmine) B+21 Shine Sanchaung
59 Yangon Garden Hotel B(2)+12 Family Business
Group Tarmwe
60 Garden Park Hotel B(2)+27 - Mandalay
61 Ruby Hotel-1 Penthouse
R.C.C+21
Capital
Development Hlaing
62 Diamond Valley Rise 27 Aye'sFamily Bahan
63 AMC Tower B(3)+27,S.C Asia Metal Kamayut
64 Junction City - Shwe Taung
Development
Bogyoke Market &
lay har pyin
65 Crown Condo B(2)+16,R.C.C Crown Advanced Alone
66 HAGL 27 Hoang Anh Gia Lai
Myanmar Set Mhu 1
67 East Race Course(ERC) B(3)+20,R.C.C Naing Group Tarmwe
68 Atrium Hotel B(2)+(13 1/2 ) Yadanar Myaing
Corner of Pansodan
Upper &Bo Min
Gaung road
69 Asia World Tower B(2)+32 Asia World Lamadaw
70 Junction Square 19+Basement,
22+Basement
Shwe Taung
Development Kamayut
71 Paragon Residence 27 Resources Group Alone
72 Yankin , Sayansan 22 Mandalay Golden
Wing Yankin
73 Ruby -2 and Ruby -3 21 Capital
Development Hlaing
74 Naing Office Tower(2) B(2)+12,R.C.C Naing Group Sule
75 9 Hotel B(2)+22 U Tin Win
(Owner) Alone
76 Dragon Empire Const;(DEC-Tower
B) 21 Mandalay Golden
Wing Bahan
77 Kantharyar Consortium B(2)+27 Asia Myanmar Min Ga Lar Taung
Nyunt
78 KER , Kabaraye Excecutive
Residence B(3)+29 Ever Seiko Ma Yan Gone
79 Time City B(3)+23 Crown Advanced Kamayut
80 Five Star Hotel B(2)+24 Hoang Anh Gia Lai
Myanmar Set Mhu 1
81 Daw Khin Khin (Owner) B+14 Aye Yeik Mon Alone
82 313,Pyay Road Project 16 Myanmar Seilone Sanchaung
83 KBZ Tower-Revised B(3)+16 1/2 Naing Group Sanchaung
84 Naing Office Tower(1) B(2)+12,R.C.C Naing Group Sule
85 Shangri La Hotel 4-Storey Podium
+21 Shangri La Yangon Min Ga Lar Taung
Nyunt
86 Merchant Suite B+19 Naing Group Capital Bo Ta Htaung
87 Hill Top Vista B+14 Shwe Taung
Development Alone
88 Chatrium Hotel 13
Chatrium Hotel
Royal Lake
yangon
Tarmwe
89 Condominium 18 Ta Kaung Bwar Hlaing
90 Golden City
R{33x9}buildings
O+S{30x1}buildings
H{4x1}Buildings
Golden Land Real
Estate
Development
Yankin
91 U Kyi Soe B(3)+28
Pinya
Manufacturing
Myanmar
& Myanmar
Mayson Industries
Bahan
Residential - 15 no.
Condominium - 32 no.
Hotel - 14 no.
R+Office Tower - 30 no.
High rise Bldg. 20 storeyed and above (53) nos.
30 storeyed and above (15)nos.
Location Map of Residential and Commercial Building Development,
INNER URBAN AREA
Sanchaung
Ahlone, KyiMyinDine
Kamayut
Tamwe
Yankin
Mingala Taung Nunt
Bahan
Mayangone
Yangon City Inner City Area
High rise Bldg. 20 storeyed and above (53) no.
30 storeyed and above (15)no
List of High Rise Building Submitted to the High-Rise Control and Monitoring Committee of YCDC
Residential Commercial Hotel
Building List Approveded by Committee
9 - 12 1/2 storeyed 16 - 3
13 - 32 storeyed 31 2 4
Building List on Going for Submitting to Committee
9 - 12 1/2 storeyed 1 - -
13 - 32 storeyed 3 - -
Building List , Change design for Resubmitting to
Committee
9 - 12 1/2 storeyed 17 - 1
13 - 32 storeyed 24 - -
Building List, To Reduce Levels Directed By
Committee
9 - 12 1/2 storeyed - - -
13 - 32 storeyed 6 - -
Building List, To Inspect From Committee
9 - 12 1/2 storeyed - - -
13 - 32 storeyed 8 - 2
Total 106 2 10

Number of buildings permitted by Building Department
from 2011 to 2013 (YCDC)
No. of Building (up to 8 storeyed) Issued for Permission (YCDC)
(2014-3months)
Housing Unit for 1st 3 months in Yangon - 4055+1500---- 5000 units
Estimated Yearly Production - 20000 units (apprx) (2014) (Private Sector)
Old Satellite Town and old suburban area are the most significant in housing Activities.
2500
2000
1500
1000
500
0
Jan(2014) Feb(2014) March(2014)
Mon
Total Building
Total Units
th
no of
building
(6-8 )
storeyed
Units
no of
building
<6 storeyed
Units Total
Building
Total Units
Jan(2014) 75 736 238 842 313 1578
Feb(2014
) 82 743 341 1298 423 2041
March(20
14) 14 171 64 265 78 436
Total 171 1650 643 2405 814 4055
Source: Building Department ,
YCDC
Mayangone
South Okkalapa
Thingangyun
Thaketa
2011 - 2013 8600 no. of Building Units
Sr.
No.
Particulars
Total Permitted Enterprises
No. US$ Total
(Kyat)
%
1 Construction 60 423.51 733314.00 16.75
2 Power 9 421.88 455383.76 10.40
3 Manufacturing * 644 1534.45 1210989.00 27.66
4 Others 33 578.97 520730.76 11.90
5 Real Estate
Development
35 176.33 148781.96 3.40
6 Transport 24 450.35 399151.18 9.12
7 Liverstock & Fisheries * 61 102.93 26375.46 0.60
8 Mining 52 34.02 13007.92 0.30
9 Hotel and Tourism 40 334.81 568420.04 12.99
10 Industrial Estate 3 80.34 300712.79 6.87
11 Agriculture 5 2.23 547.90 0.01
Total 966 4139.82 4377414.77 100
1600
1400
1200
1000
800
600
400
200
0
MYANMAR CITIZENS INVESTMENT BY
SECTOR AS OF (28/2/2014)
No.
US$
MYANMAR CITIZENS INVESTMENT BY SECTOR AS OF
(28/2/2014)
2000
1000
0
Foreign Investment in real estate
Mar2011,Aug2013,Feb2014
Mar(2011) August(2013) February(2014)
Hotels & Tourism Other real Estate
Sr.
No. Particulars
Existing Enterprises
No. of
Enterprises
Approved
Amount (US$ in
million)
Percentage(
%)
1 Power 7 19284.43 42.52
2 Oil and Gas 115 14372.272 31.69
3 Manufacturing 317 3736.29 8.24
4 Mining 69 2862.424 6.31
5 Hotel and Tourism 51 1797.921 3.96
6 Real Estate 22 1229.150 2.71
7 Transport & Communication 18 1217.016 2.68
8 Livestock & Fisheries 28 365.974 0.81
9 Agriculture 13 203.02 0.45
10 Industrial Estate 3 193.113 0.43
11 Other Services 15 54.39 0.12
12 Construction 2 37.767 0.08
Total 660 45353.78 100
400
300
200
100
0
FOREIGN INVESTIMENT OF EXISTING ENTERPRISES
Power
Manufac…
Mining
Hotel…
Real…
Transpor…
Livestoc…
Agricult…
Industria…
Other…
Construc…
AS OF (28/2/2014)
(BY SECTOR)
No. of
Enterprises
Foreign Investment of Existing Enterprises as of
(28/2/2014)(BY SECTOR)
FDI IN REAL ESTATE SECTOR

LAWS RELEVANT TO INVESTMENT IN BUILDING AND
HOUSING DEVELOPMENT
THE FOREIGN INVESTMENT LAW (THE PYIDAUNGSU HLUTTAW LAW NO
21/2012) 2nd November, 2012
MYANMAR INVESTMENT COMMISSION NOTIFICATION NO. 1/2013
Nay Pyi Taw (31st January, 2013)
•Classification of Types of Economic Activities
•List of Economic Activities under Prohibition
•List of Economic Activities to be allowed only in the form of Joint Venture
with Myanmar Citizens
37
MYANMAR INVESTMENT COMMISSION NOTIFICATION NO. 1/2013
Nay Pyi Taw (31st January, 2013)
With the Recommendation of the Ministry of Construction
•Establishment of international standard golf courses and resorts
•Establishment, sales and lease of residential apartments / condominiums
•Construction and sales of office / commercial buildings
•Establishment, sales and lease of residential apartments in residential areas
connected to industrial zones
•Establishment of affordable housing
•List of Economic Activities Permitted with the recommendation of the Ministry
of Construction
•Construction / renovation and lease of office / commercial buildings
38

Principals
• Share Contribution-
– Local partner contributes land use right as equity
– FDI contributes construction cost, technology and
marketing
• Projects can be proposed to Myanmar Investment
Commission together with EIA/SIA through the process of
negotiation.
• Joint Venture Company will be formed after receiving
investment permit of Myanmar Investment Commission.
• Profit distribution : Dividend will be distributed as per share
ratio.
Investment Procedures for Foreign Developer in Myanmar
Land availability need to confirm first.
Promoter has to submit comprehensive proposal
together with Attorney General Office’s comment
through DHSHD and Ministry of Construction according
to the Foreign Investment Law
Investment Proposal Appraisal
Team
Myanmar Investment
Commission (Permit Issued)
Signing JV agreement / BOT contract and Lease agreement
and commence the business.

Future challenges and opportunities
• To provide quality building and services for consumers who
has different affordability and taste is become crucial.
• Reliability of developers for their planning, design, and
technology to secure environment and social impact
• Capacity of constructors (engineers and technology)
• Issues on Residential & Commercial land Requirement for
Future Development
– Land Price and Speculation of Land
– Planning and Legal Issues
THANK YOU FOR YOUR KIND ATTENTION!
42

Building contruction and housing sector in myanmar 2014

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