Myanmar's second city, Mandalay, is ripe for expansion in the real estate market: Colliers International

Myanmar’s second city is ripe for expansion in the real estate market, according to  report from developer Colliers International.

The city’s property growth is currently upheld by an expansion of small hotels working to meet Myanmar’s growing tourism trade.

Larger hotels have also set up shop, with five high-end hotels currently in the city of 1.2 million, and another five being built.

For companies, however, Mandalay is a much less developed destination.

Mandalay is a sprawling city, composed mainly of houses with few high-rises, and Colliers expects to have fewer than 1000 units even into the end of 2017. Fewer than 6 percent of households live in high-rises, compared to 17 percent in Yangon.

This is coupled with a lack of office space, with many extant businesses currently housed in hotels, according to the report.

While housing units are currently 30 to 50 percent cheaper than in Yangon, the office supply remains tight due to a lack of supply. The first commercial office building is set to open with a development called Mingalar Mandalay.

Retail, too, remains dear, with the only high-quality spaces in two extant developments, Diamond Plaza and Ocean Super Centre.

​