Nowhere to Go but Up for the Philippine Real Estate Market

According to Moody’s Analytics, the Philippines will likely grow the fastest

among Asian economies this year. Colliers International also sees growth in the Philippine economy between 6.5 and 7.5 percent.

Despite a devastating typhoon that struck the country in November 2013, many analysts believe that the rehabilitation and reconstruction efforts in those areas will only drive economic growth for the country in the coming years.

Economic growth translates to more wages for employees and more profit for investors. Now that the Philippines are considered a top investment spot in the Asia-Pacific, more and more investors are looking forward to do business in the country.

Apart from the positive economic outlook, the Philippine real estate market also remains vibrant this year. According to CBRE Philippines, the country had a strong 2013, allowing it to emerge as a major player in the ASEAN in terms of office space. CBRE also sees continuous growth in real estate this year.

Location

Location is one of the most important aspects for many establishments. It’s the key to every organization’s overall growth. Business address can increase a company’s credibility. Also, the safety of the area helps firms in generating their businesses.

In the Philippines, Makati remains the best value

city to do business. It’s a location of choice for many multinational and local companies alike. This is because the city offers several advantages and conveniences that a lot of investors can’t find in other metropolitan areas.

Companies like Apartments Makati provide comprehensive listings of available real estate in the city. They also include valuable information to help people search for properties easier and faster.

Demand

Aside from commercial space, the demand for residential real estate is also on the rise, particularly in the luxury segment. The arrival of expats brought about by the booming IT-BPO industry is another source of demand for the country’s real estate industry. Many companies are now leasing properties in Makati and in other business districts for their expat employees.

Rental Yield

In the first quarter of 2012, Colliers stated that the average rent of a luxurious three-bedroom condominium unit in Makati reached $15.74 per square meters a month, which was 4.8 percent higher from the earlier quarter. Data from Global Property Guide also show that the average rental yield for condominiums in Metro Manila reached 8.72 percent in October 2011.

Interest Rates

Because of the good economic performance of the country, the Philippine Central Bank maintains its key interest rate at current record-low rates. Sources: http://www.apartmentsmakati.com/ http://www.cbre.com.ph/cbre-sees-continuous-growth-in-2014/ http://www.interaksyon.com/business/83140/philippines-to-lead-asian-economic-growth-in-2014----moodys-analytics