The emerging real estate industry is the forerunner in Philippines’ movement towards urban revolution. And in support to its urbanization efforts are the country’s firm economic background, the compelling demand for business process outsourcing (BPO) services, an increased rate in consumer spending, and the thriving spate of remittances from the overseas Filipino workers.
As these developments continue to steer the economy with impressive results, this lead most economic experts to believe that 2015 is the perfect time for property investors in the Philippines. Some of the big leaders in the market today such as Vista Land, Megaworld, Ayala Land, and Century Properties are among the long-time honchos who’ve committed their investments in the country.
As these companies managed to grow for the past years, they proved that the property market encourages metropolitan development in the country.
According to Century Properties’ Managing Director, Robbie Antonio, the demand for new homes is strong.
2011 was the year where the real estate market truly escalated in the Philippines, as the economy inflated a 7% raise, which was the highest compared to the past years. This also included a 7% increase of remittances inflow from over 10 million overseas Filipinos.
In Antonio’s experience, the biggest risk and obstacle in the industry is overspending and being too ambitious when the market is not as hot contrary to what one may think.
Gearing up for the Years Ahead
The market can change in a heartbeat. Some may presume that with the recent successes of the real estate market in the Philippines, it will soon be enclosed in a real estate bubble—a known distressful game changer when it comes to the local or global real estate market turf, as it occurs periodically, particularly following a land upturn.
In preparation for this economic turn, most analysts believe that the Philippines’ resilient economy can burst this bubble, as the government focuses its efforts on fixing critical aspects such as updating public infrastructure, political stability, inflation control, and maintaining low interests.
Urban developments have also implemented plans of relocation outside the capital city. Most of these investments can be seen on the nether part of Manila such as Cebu, Iloilo, and Tagaytay. These cities are believed to be where the next wave of suburban and economic growth will transpire.
Aside from these relocations, the Philippines also has its own share of tourism and hospitality treasures that were recently discovered and immediately appealed to a number of investors. For instance, PAGCOR’s Entertainment City in Parañaque, the City of Dreams, Bloomberry Corp.’s Solaire Resorts & Casino, and the Okada Group’s Manila Bay Resorts, which will be launched in the coming years.
According to PAGCOR, these entertainment properties were anticipated to attain $7 billion of gaming revenue by 2019. With a lot of these varying properties in store, more foreigners have become interested in buying these investments to set up different businesses such as manufacturing and automotive.
The country is favored by some foreign buyers to do business in for the strong macroeconomic indicators, competitive working resources, and a stable climate. The Philippines is also a welcoming place for foreigners to study, work, play, and live to their accord.
Without a doubt, the multiple foreign investments and the government’s efforts had played a huge role in the country’s urbanization. But looking at the larger picture, the private sector was the first to lead the endeavors in the advancement of constant urban revolution.
Lots of overseas Filipino workers and BPOs have bought properties to become their office and residence. These properties have provided the groundwork for most Filipinos to adapt to a new paradigm shift, a new lifestyle, and standards for living.
For these people, settling for less is not an option. Ensuring that their hard-earned money will go only to the best property investments is their best foot forward, especially in this year of 2015 where the Philippines is proven to be a huge refuge for property trades and investments.