MK Group plan to invest in a four-to five-star hotel in Rangoon to capitalise on the low supply of hotel rooms in Burma. MK Group is the marketing represantive of Sahapat Group and has operated retail business in Burma for 20 years.
Revenue growth for the company from the first year up to 2008 was steady. Since 2008 growth has increased sharply, going up 50-100 per cent.
Burma attracts a large number of foreign investors looking to invest in office buildings, hotels condominiums and serviced apartments. Tony Picon, associate director for research at Colliers International believes foreign investors are hindered by the investment law in Burma according to The Nation.
“Many foreign investors are looking to invest in the property business. The problem is the current regulation does not support them to do it right now. This is not fair to the Burmese people, who are hopeful that a lot of investment projects are coming into the country. Property is seeing a lot of speculation. They [foreign investors in the property business] may have to wait for the new investment regulation, which is expected to facilitate them more than the existing one,” he said.
Colliers International Research claim the average price of property is on the rise in Burma, Property in a downtown area in 2011 was THB42,000 (US$1,400) per square metre compared to THB36,887 (US$1,200) per square metre in 2010.
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