Philippines Real Estate Market 018
The Philippines is considered one of the fastest growing economies in Asia today, even surpassing China at a staggering increase of 6.7% for the Gross Domestic product (GDP). Expectedly, the demand for residential, commercial and industrial properties grow by leaps and bounds, propelled by several contributing factors, foremost of which are the growing urban population and the increasing BPO workers. Because of this, there is a tremendous increase in the housing needs of these urban workers as they have to settle near their places of work. Not to mention the ever increasing demand of the families of Overseas Workers (OFWs) to buy or invest their own homes in nearby provinces and suburbian districts which are a few kilometers away from of Metro Mania.
The OxfordBusiness Group (OBG) see a big push in the real estate that continue to extend outside Metro Manila. This was due to the growing middle-class that boost the demand for condos and attractive residential houses. There is also a strong increase of high-end housing projects located in some key cities outside Manila which go as far as Baguio City, the summer Capital of the country , which is about 250 kilometers north of Manila. The commercial and Industrial sector in the provinces of Cavite and Laguna, about 40 and 70 kilometrs south of Manila are also teeming with a mixture of socialized housings for the poor, attractive townhouses and glamorous villas in plush villages for the middle and upper classes.
Colliers International shares the same optimism in a December 2017 forecast about the tremendous growth of the real property sector. On the other hand, some Tax Reform measures initiated by the government and the relaxation of some restriction on foreign ownership contributed well in the healthy development of the real estate sector. The improve system of procurement and business registration entice more businessmen to take part not only in leading business entrepreneurship but also in big infrastructure projects of the government amounting to billions of pesos.
Colliers agrees that good roads and well-built infrastructures like airports will further invigorate the economy with the participation of big local businessmen and foreign investors in the field of manufacturing, BPO and especially, on high-rise condos and affordable housing for the majority of Filipinos. Colliers further observed that the demand for residential units will continuously grow as more and more OFW’s will always find ways to save part of their earnings to finance their dream houses. Colliers also sees that more developers will put their money into residential projects in the provinces or lesser known cities where the cost would be cheaper than in Manila.