Karlo Pobre is the Associate Director of Colliers International’s Research and Advisory team in Myanmar.

As well as producing major property reports, Karlo is responsible for the various advisory and consultancy requirements of both local and foreign clients. Karlo’s expertise lies in feasibility studies, highest and best-use studies, development recommendation and critique, statistical forecast, competitor and industry scans, consumer insight analysis and development conceptualization, and project marketing assessments. 

Colliers as a whole is a global leader in real estate service, providing expert service through creative real estate solutions. The company endeavours to integrate its business practices with its people-focused approach to maintain and achieve Colliers' core values of expertise, service, and community.

WILLIAMS MEDIA spoke to Karlo Pobre about his experiences working in Myanmar's property market.

What are the defining moments in the Yangon real estate/expat history?

Development has always been a gradual concept and Myanmar is no exception. When the market first liberalised in 2011 it did not immediately translate into a massive change in business but rather it instigated interest in the country and took effect perhaps some two to three years after. In terms of real estate, each sector had several big moments such as the entry of HAGL office towers which doubled the total supply stock nearly overnight; and soon followed with more modern hotels and retail developments slowly changing the city landscape and consumer behaviour. In general, real estate in Yangon has been a balancing act between supply and demand. In recent years, quality has been one of the key improvements and this is likely to continue as upcoming projects are starting to adopt international standard practices.

Where are the key emerging markets that people should be looking to in Yangon that you think will have upside? What are the key marketplace opportunities? 

I see the retail market to grow even stronger with both pre-commitment and occupancy levels staying above 90%. Similar to other neighbouring countries, shopping malls are likely to be the “new public parks” in the future and the market’s success should be reinforced with the improving spending patterns especially towards F&B. Affordability across all sectors is a major concern. Budget-friendly products remain meagre. The market for limited serviced apartments or even just apartments for lease remain widely untapped. Outside Yangon, I see strong interest for coastal and scenic destinations, especially for hotel and resort residences.  

What advice would you have for those looking to come into markets like Myanmar and set up business?

Brace yourselves. Entering a frontier market is no easy feat; it involves a lot of unexpected changes and a great demand for adaptability. We always advise our clients to study the market in great detail. To help our clients navigate these waters we provide regular market presentations apart from the initial market studies as well as in-depth consultation and advisory reports for their conceptualized developments. As we have seen in the past, the earlier we engage with the client the better it generally results for them, in the long run, allowing us to guide and assist them from the initial conceptualization to execution. Overall, knowledge is key to any company and once it has acclimatized to Myanmar’s unpredictable environment it can prove to be very rewarding.

Who is your typical client? 

The majority of our clients are still mostly Asian foreign companies but we are getting more interest from local companies now looking for advisory work. Many of the local developers are now starting to see the high importance of research and consultancy; and with them seeing the success of their developments, we are definitely proud to have been part of their planning process.   

What do you do for your clients and how do you best help them?

Colliers holds its clients in high regard tailor fitting our offers to their requirements and what we feel they would need in order to best maximise their budget. We believe that their success is our success and as such we endeavour to provide continuous guidance to our partners. The team provides quarterly updates, presentations and continuous advice to clients even after the initial engagement has completed.

What would you like to see changed in the industry in 5 years?

More government assistance would definitely be a boom for the industry. Streamlining and implementation of relevant legislations would go a long way to boosting investors confidence. Adoption of international standards would also be a great leap for the country’s quality standards. For now, Myanmar is still playing catch-up to its neighbour countries but we are confident that it will achieve such a feat in time.

What advice do you have for people looking to buy property in Yangon? Advice for people looking to sell in Yangon?

Practice proper due diligence. In the past, the buying and selling of property was heavily dictated by “market perception” which caused a lot of properties to be transacted in exaggerated rates, which hiked up especially land prices in leaps and bounds. Likewise in selling properties, providing for a more justifiable rate would entice buyers to closing in on a deal. For our clients, we provide valuation services to help them determine the best possible price.  

Are there any particular trends in demand or foreign investment you are seeing at the moment?

We have seen several investors showing interest in entering Myanmar’s retail and office sectors. Office tenants are now more particular with building considerations, having health, safety, and wellness of their staff in mind. Retail tenants, especially for mid-tier food and beverage are observed to be doing exceptionally well. Overall, given the generally high cost of land, we have seen investors becoming more keen on developing satellite communities instead. While not a new concept, developing a “live-work-play” environment appears to be attractive in Yangon; and given the right components, synergies, and project positioning, mixed-use developments can yield positive financial outcomes.    

Where do you see the Yangon property market in 10 years and what needs to happen to get us there?

Industrial revolution – apart from the improvements in the typical commercial and residential sectors, the growth in the industrial market is in fact pivotal. We expect more developments transpiring in this sector and this should eventually spur social and economic growth across all segments. This, however, will have to be reinforced by having the proper infrastructure in place.   

For more information about Myanmar's property market email Karlo Pobre from Colliers International via the contact information below. 

This article was first published on Mingalar Real Estate Conversation

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