The construction industry in Myanmar is forecast to grow at an average annual rate of more than 10%, according to a new report.
Analysts at Timetric’s Construction Intelligence Centre (CIC) predict the industry could be worth US$ 13.5 billion by 2020, largely driven by government investments in affordable housing, energy, utilities and infrastructure projects.
Overseas investors are also seen as being key to the long-term success of the market.
Danny Richards, lead economist at Timetric’s CIC, said, “Government flagship programmes such as the National Transport Master Plan, National Export Strategy (NES), and National Electrification Plan will promote industry growth over the next five years. However, the underdeveloped regulatory and financing environment and a lack of transparency in the tendering process will prevent the construction industry from expanding at a faster pace.”
Since 2011, residential development has proved the mainstay of the construction industry in the country, accounting for almost half of its value in 2015.
By 2020, according to Timetric, the residential construction market alone will be worth US$ 9.7 billion.