AS improved electricity supplies give manufacturers a welcome boost to production, demand for warehouse space to store products in is also increasing, according to sources in the real estate industry.

The increased electricity supplies to industrial zones have given businesses some reprieve from soaring prices for fuel (to run generators) and raw materials,” said U Zaw Zaw, a manager at real estate agency Unity Co., Ltd.
“And as production picks up and returns to normal, there is a need for warehouses.

“If the businesses continue like this, there is going to be even more demand for warehouses in the rental market to hold manufactured goods,” he added.
U Than Tun Kyaw, from Emperor real estate agency, said location continued to determine warehouses’ popularity.

“It’s obvious that people prefer warehouses that are located in places that are easily accessible from where their work,” he said.

As such, most warehouses in Yangon are located near busy markets – like Bayintnaung and Saw Bwar Gyi Gone – and industrial zones.

However, though demand had increased, asking prices for warehouse space had not, sources said.

“The truth is, owners previously weren’t getting the price they asked for, but now people are more willing to pay those rates,” said Ma Nan Than Yi from Pan Tha Khin real estate agency.

In June most warehouses were being rented for between K300,000 and K1 million per month, with mid-sized warehouses priced around K500,000 a month being the most sought after.

“Since early August, the bigger warehouses costing about K1.5 million have been becoming more popular,” U Than Htun Kyaw said.