Saturday 13 July 2013

Yangon office rental higher than New York or Tokyo say investors

Finding office space in Yangon, Myanmar's economic hub is becoming increasingly difficult because of high prices and limited availability.

As many foreign companies rush to open businesses in Myanmar, limited office space and exuberant rental fees means that many have to rely on the big hotels such as the Sedona, Traders, Sakura Tower and La Pyae Won Plaza.


“The rate is higher than Singapore and Bangkok and also some places of New York, Tokyo and Shanghai,” said a representative from a international money transferring service.

At present, the monthly rental fee for a standard size office space is between 25 million and 40 million kyats (US$25,000 - US$40,000) - with some offices charging between US$70 to US$100 per square foot.

“We have hired a room in a hotel for ten years. The rate is slowly increased and now the rental fee is the highest in two years time. We decided to move the office to our head office because the rate is higher than the price should be,” said an official from a Japanese company based in Yangon said.

The real estate experts say that rental fees in Yangon will be increased for a couple more years due to lack of high-rise buildings.
 
source: Eleven Myanmar

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