Myanmar Construction Industry Growth Expected to Remain Strong Through 2016, According to Timetric

11 Jun 2012 • by Natalie Aster

The Myanmar construction industry increased in value at a compound annual growth rate (CAGR) of 11.48% during the review period (2007–2011). This growth was supported by the country’s improving political stability, increasing number of investment opportunities in energy and public infrastructure projects, and rapid inflow of foreign direct investment (FDI) from Vietnam, Thailand, China, Singapore and Malaysia.

The construction industry growth is expected to remain strong over the forecast period, driven by the government’s increasing expenditure on improving Myanmar’s public infrastructure, and the rising interest of domestic and foreign real estate developers on constructing residential units to meet the population’s huge housing demand. The infrastructure and residential construction markets together generated 77.3% of the total Myanmar construction industry value in 2011, and the contribution of these two markets to the overall Myanmar construction industry growth will be significant over the forecast period. It is anticipated that the construction industry will increase in value at a CAGR of 7.84% over the forecast period.

According to the report “Construction in Myanmar – Key Trends and Opportunities to 2016” by Timetric, the commercial construction market recorded a CAGR of 8.09% during the review period. This growth was mainly driven by the leisure and hospitality and office buildings categories, which together accounted for 67.2% of the commercial construction market value in 2011. Furthermore, since the 2013 Southeast Asian Games (SEA Games) and 2014 Asian Summit will be held in Myanmar, the demand for hotel and land has started rising in cities such as Yangon in preparation for the anticipated influx of foreign investors and tourists to the country. Timetric expects the commercial construction market will register a CAGR of 8.01% over the forecast period. The contribution from tourism will be significant to the Myanmar commercial construction activity over the forecast period.

Report Details:

Construction in Myanmar – Key Trends and Opportunities to 2016
Published: May, 2012
Pages: 235
Price: US$ 1.950,00

The Myanmar industrial construction market increased in value at a CAGR of 13.13% during the review period. This was mainly be supported by the growth in the refinery building, waste processing plant and manufacturing plant categories. The industrial construction market is anticipated to increase in value at a CAGR of 8.21% over the forecast period, which will be supported by Myanmar’s industrialization and by the construction of several industrial zones across the country.

The infrastructure construction market recorded a CAGR of 11.88% during the review period. This market accounted for the second-largest share of 26.4% of the total Myanmar construction industry value in 2011. The increased foreign investment in energy and hydropower, estimated at over US$2.5 billion in 2011, helped the international investments in infrastructure development to reach a high level in March 2012. The construction of roads and power plants to meet the basic infrastructure needs of the country will enable the market to achieve a CAGR of 8.89% over the forecast period.

The institutional construction market registered a CAGR of 11.44% during the review period. The educational and healthcare building categories are the largest in the institutional construction market, and they together accounted 82.4% of the total institutional construction market value in 2011. Since the start of democratic reform in 2011, the government has focused on developing several industries such as the education and healthcare industry. This can be indicated by the fact that the education and healthcare industries received higher budget allocations in 2012 than in 2011. As such, Timetric anticipates the market will increase in value at a CAGR of 7.42% over the forecast period.

The residential construction market registered a CAGR of 11.31% during the review period. This was supported by the country’s favorable demographics, expanding middle-class population and rising housing demand. Timetric anticipates that the residential market will continue to enjoy favorable market dynamics, which will drive the market’s growth and enable it to achieve a projected CAGR of 7.18% over the forecast period.

More information can be found in the report “Construction in Myanmar – Key Trends and Opportunities to 2016” by Timetric.

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