MANILA – Growth in the country's real estate industry is expected to continue on the back of positive trends in the office, commercial and residential sectors, according to real estate consultancy firm CBRE Philippines.
In the third quarter of the year, the country's real estate activities grew 8.9 percent, faster than the country's economic growth.
The real estate market is the third biggest contributor to gross domestic product (GDP) points after trade and repair of motor vehicles, motorcycles, personal and household goods, and the manufacturing sector.
CBRE Philippines said the Philippines remains to be an attractive destination for investors due to government’s efforts to improve public infrastructure, political stability, benign inflation which tempered to 4.4 percent, and low interest rates.
It added that the upcoming ASEAN integration is also expected to heighten investor interest in the country as foreign companies expand their market reach.
“The continuous transformation of cities into business landscapes will only strengthen the position of the country as an investment destination in the coming years,” said Rick Santos, president, chief executive and chairman of CBRE Philippines.
CBRE Philippines said the office sector continues to grow driven by commitments from offshoring and outsourcing companies, which bank on the country’s cost efficiency and skilled labor force.
The firm also highlighted the increase in township developments that give investors a more convenient and creative way to maximize each area.
The increasing expatriate community in the country and families of Filipinos working abroad is also seen to boost demand in the residential sector, particularly in the luxury, high-end, affordable, and mid-market condominiums.
CBRE Philippines said 40 percent of condominium sales activities cater to foreigners while 60 percent is to Filipinos.
“As long as this performance continues, and even improves, we can only see nothing but great developments in real estate especially with the ASEAN integration coming up,” said Santos.