Reading Time: minutes
As the Philippine economy enjoys a steady growth, the local real estate market, along with other sectors, is reaping the benefits of the positive outlook.
In fact, in a speech by Secretary Arsenio Balisacan, Economic Planning Secretary and Director-General of the National Economic and Development Authority, the local property market continues to grow, driven by several factors, particularly the rapid urbanization and the accompanying rise of residential sector.
- As of 2010, 48.6% of the Philippine population lived in urban areas, but this is expected to increase to 56.3% by 2030 and 66% by 2050.
- Condominiums are becoming particularly attractive in Metro Manila, with an estimated increase in supply of 14,000 units from 2012 to 2018, mostly coming from the mid-end segment of the market.
- The middle class drive the demand for residential properties, as well as the 11 million Filipinos abroad who in 2014 remitted around US$ 24.3 billion, allocating about US$ 7 billion of which into property investments.
- Meanwhile, residential projects in townships attract not only the affluent buyers, but also young professionals who opt to live near offices, schools and retail destinations.
Aside from the residential market, the demand for commercial and office developments in the local property market also continues to increase. This growth is driven by several factors, such as the growing services sector.
- As of 2014, about 57% of the country's GDP was accounted for by the services sector which comprises not only real estate activities but also information and communication; financial and insurance activities; education, health, and social work.
- Furthermore, the country's BPO industry remains vital for the growth of the country's real estate sector. Our BPO sector has been tagged as one of Asia's brightest spots, as evidenced by the influx of new investments from foreign investors.
- Because of this, there is a higher demand for office requirements, particularly those with BPO facilities, as the government projects an expansion of the outsourcing industry within the next five years.