Have you ever wondered about the reasons behind why the real estate industry is flourishing lately? Have you thought that maybe it has something to do with new architectural designs or possibly it has something to do with the resourcefulness of the people when it comes to the use of construction materials like a?
If you are curious about the real estate market in the country because you want to make an investment, then look no further because this article aims to discuss and provide the reasons why this industry seems to be thriving in the local and international scene in these past few years.
The Growing Economy in the Philippines
Rappler reports that the Philippine real estate industry has become one of the most profitable in Asia Pacific lately. The Urban Land Institute is backing this statement up by saying that the markets in Manila, which is the capital of the country, have been performing very well in the past few years because of the growing economy.
This growth has been getting support from the local government, which has become business friendly and transparent when it comes to its transactions. This is attracting foreign clients in the corporate and business world especially from the business process outsourcing (or BPO) facilities.
According to KMC MAG Group, the country’s economy is currently inviting a continuous build-up in interest in the real estate industry. It says that this is also due to the promise of higher yields in the market.
Demand for Housing and Office Spaces
Low cost and socialized housings are becoming more and more popular in the country, with real estate developers stating that they are slowly having a hard time providing the supply because of the sudden increase of demand when it comes to them.
The National Real Estate Association says that the demand for them is huge and is still growing. It says that it will be difficult for the developers to catch up even when they do combined production.
On the other hand, developers will continue being prudent when it comes to their approach to office spaces. They will maintain pre-leasing them to keep the very low levels of vacancy rates. Although, it seems that their demand will continue to rise due to outsourcing and offshoring companies.
The Future of Real Estate in Philippines
Many economic and financial organizations, which include the International Monetary Fund, are predicting that the real estate market in the Philippines will likely sustain a 6 to 7% growth in Gross Domestic Product or GDP. They even claim that this will possibly continue up until the year 2020.
According to economists, the Philippines will reach a $1.05 trillion in GDP, which is sustained by the growth of overseas remittances and the BPO industry.
Other reasons why the local real estate industry will only grow in ten years’ time is because of the growing demand for office or commercial spaces, the steady demand for luxury residential market like condominium units, the still existing hole for mass housing, the bigger need for retail space, and the appetite for more hotel rooms.
Based on these facts, you really do not have anything to worry about when it comes to investing in the Philippine real estate market.
About the author:
Jeric is a freelance writer that features food, lifestyle, travel, DIY subjects, and nature. He is an adventurer, taking on the world and everything it has to offer, may it be the good and the bad. He also has a weird love for reggae and sharks. See: Reggae Shark