With the recently concluded national elections, the Philippines is now headed towards a new chapter. Led by a new administration and a leader known for his strong track record in local governance, Duterte's success has placed the country in a different state of euphoria, driven by the promise of a much-needed policy change and approach in government.
This change is also welcomed by several major investors, with stocks immediately rising and forecasts remaining optimistic with the release of President-elect Rodrigo Duterte's initial 8-Point Economic Plan, which reveals plans to continue several of the previous Aquino administration's policies and include new initiatives, such as amending the current 40% foreign ownership policy in the Constitution.
Now is still the best time to invest in the Philippines -- and in this post, we have summarized the top locations to consider should you decide to enter the Philippine market or expand your current investments.
Bonifacio Global City
One of the fastest-growing central business districts in the country, Bonifacio Global City (BGC) is the best location to invest in, whether it's residential, office, or retail.
BGC has the highest number of available and upcoming stock for Grade A and Premium office spaces, according to the latest Office Briefing 1Q/2016. This year alone, BGC is expected to have an additional 300,000 sq m supply within the next three quarters, providing plenty of options and room for investors and companies to enter the market.
On the retail side, BGC continues to post the highest rental growth rate in the Asia-Pacific, driven largely by the massive take-up of both local and foreign brands to take advantage of the country's strong private consumption, which currently drives economic growth.
BGC is also home to some of the most prime residential properties, making it the top of mind selection of several local and foreign condominium investors.
Upcoming developments to look out for:
Cebu is a popular choice among established BPOs and multinational firms in the Philippines as an alternative to congested Metro Manila. The city also has a talented labor pool, a higher qualiy of infrastructure (compared to other cities outside the capital), and accessibility not just locally but also in the international scale, as the city has its own international airport.
In the next three years, Cebu's development pipeline is at almost 1-million sq m, spread across the two major IT parks Cebu Business Park and Cebu IT Park and fringe areas, as shown in the latest Cebu Office Briefing 1Q/2016. Cebu's high amount of available supply has eased rental growth, which makes it appealing to businesses looking to cut costs or look for more affordable yet high quality space.
On the retail and residential side, the favorable market conditions in Cebu encourage developers to provide more property options with higher quality and more accessible locations. The continued development of business parks and entrance of more companies in the city is expected to continue to spur growth in these sectors.
Upcoming Developments to Watch For:
One of the most progressive cities in Mindanao, Davao is often cited as one of the best places to live in the country. Home of the former Mayor, now President-elect Rodrigo Duterte, Davao is expected to develop further in a faster pace within the next few years, now that it has gained the spotlight as a viable next-wave city in the Philippines.
While several foreign investors are not yet so open or confident about investing in Mindanao, this is expected to change once Duterte becomes president. His strong influence in the region and relationships with various Muslim groups and organizations is seen as an important asset to the peace process. Its accomplishment will likely open up the region for more opportunities for investments.
Today, local developers have started expanding in Davao. Early last year, Ayala Land Inc. and Alsons Development and Investment Co. have already launched their 25-hectare, joint mixed-use development in Lanang, Davao City, which will offer residential, office, and retail space.
Megaworld, on the other hand, has already announced its allotment of Php 15-billion for the development of Davao Park District into an IT Park.
Upcoming Developments to Watch For:
Office: Ayala Business Center
Residential: Northpoint by Vista Land