According to two reports recently released by Colliers International, a real-estate consultancy with office in Yangon, both retail and office markets are suffering from the waves brought about by the Covid-19 outbreak.

For the retail market, the report states that the demand in retail space is anticipated to correct further downwards gradually as major shopping malls witness a drop in footfall in the wake of Covid-19 infected cases. Yangon witnessed no new addition to its total supply in Q1 2020 closing with more than 380,000 sq metres of leasable space. The developments scheduled to complete during 2020 may see delays as developers are likely to face disruptions in obtaining construction materials and logistics.
The citywide average rental rate stood at USD 28.2 per sq metre
per month as of Q1 2020, a decrease of 1.7% and 8.2% on quarterly and
annual bases.

In the commercial office market, Colliers though not anticipating a sizeable decline in demand for office spaces, warns that domestic and foreign firms alike will be prudent in relocation or expansion activities, while small and medium-sized enterprises are likely to experience higher financial liquidity risks, further dampening the market. Colliers believes that there is still potential for a fairly rapid rebound, especially in H2 2020, if the virus is contained in short order.