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Real estate investment is a good avenue for building wealth, provided that you choose the right location and property to invest in. With the Philippines' robust economic growth, swift increase in foreign investment, and reform-minded government, buyer and investor confidence is at its peak, especially for office space and buildings in major business districts as well as luxurious residential spaces and condominiums. KMC MAG Group's latest midyear report forecasts a continued boom in Metro Manila real estate in the remaining months of the year. This week's infographic gives a quick overview of the key data in the report, covering Makati, Fort Bonifacio/Bonifacio Global City, and Ortigas. With this guide, first-time investors in the country should be able to get an idea of available commercial and residential space supply, possible yields, and average rental rates in the top 3 cities.

Key takeaways:

  • This year, the Philippines posted a high GDP rate in spite of global recession, which has been driven by active construction industry, high amount of OFW remittances, credit rating achievements, and stable political climate. 
  • The Philippines' low interest rates encourages activity in the property sector and foreign investment in real estate.
  • Among the three CBDs, Ortigas office market has the lowest vacancy rate at 3.6%, while Makati offers the highest prime yields ranging between 7.5% and 11.0% for premium office space.
  • Bonifacio Global City, on the other hand, has the highest prices and yields for residential properties, specifically condos, with an average rental rate of Php 835 per sqm per month and a prime yield between 6.0% and 8.0%.
  • In Makati, available stock is at its lowest, signaling high demand and occupancy.
  • Bonifacio Global City's increasing stock demonstrates high level of activity in real estate to cater to the demand.
  • Sold out developments in the area show that more investors and home buyers prefer to locate in Bonifacio Global City. 

Are you shopping for condos, commercial and office space, or other properties in Metro Manila? KMC Savills can help ensure success and returns on your real estate investment. Contact us today for up-to-date research and advice on Philippine real estate.

You can download the full midyear report here:  http://c.kmcmaggroup.com/Philippine-Real-Estate-2013-Midyear-Report.pdf