Thursday, June 5, 2014
Business Monitor International posted a positive forecast for the Philippine commercial real estate sector due to the country's strong economic growth. They credited the growth to the country's growing business process outsourcing, offshoring industries and increasing ASEAN integration.
In the office real estate end, it is driven largely by demand for the BPO industry, which they see as increasing over their forecast period.
This confirms predictions from the beginning of the year that the Philippines has stayed strong, and continues to grow as an appealing investment.
In another research survey released last March, the Philippines was reported as a top performer in the growth of worldwide housing prices. In GPG’s global house price survey for 2013, the Philippines was the fourth top performer with the average price of three bedroom condominium units in the Makati central business district rising 10.56 percent in 2013, following annual increases of 4.85 percent in 2012 and two percent in 2011.
The research house says demand remains strong, as indicated by soaring real estate loans.
It noted that based on data from the Bangko Sentral ng Pilipinas, the volume of real estate loans rose 38.5 percent year-on-year to P776.65 billion in September last year. They also credit the country’s economic growth for the local housing growth.