Sunday, 5 February 2012

Myanmar Becoming More Attractive to the West

Until recently Mayanmar was a somewhat faded Southeast Asian country that saw very few Westerners. This former British colony was ruled for 50 years by a military junta and had a very poor human rights and democracy record which saw sanctions imposed by Western governments.

It is now ruled by President Thein Sein, a retired junta general who since coming to office 10 months ago as a civilian leader has imposed an economic and political reform, the speed of which has amazed observers. Last year saw a groundbreaking visit by US secretary of state Hillary Clinton, and William Hague visited in January.

This has raised the profile of Myanmar, especially as sanctions will soon be lifted, and businessmen are quickly seeing the potential of the country. It has a considerable number of natural resources including precious gems, gas, oil and timber, and the former capital city of Yangon is seeing something of a property boom.

High-end hotels in the city have been fully booked during recent months and there is a shortage of office space as well as the type of housing expected by Western executives. Villas which were available to rent for just a few thousand dollars a year ago are now costing up to $50,000.

International standard office blocks have seen prices increase from $25 per square metre to $50 per square metre in just 12 months, with even a small office now costing $3,000 a month to rent.

Companies are keen to rent office space in order to conduct market research before sanctions are lifted, and rents are expected to increase by another 30% during the first six months of this year. Yangon is not the only city to see price rises, as the old royal capital of Mandalay have seen huge increases during the last few years, mainly driven by an influx of Chinese money.

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