Monday, June 9, 2014
Property consultant, Jones Lang LaSalle, predicts that with the rise of the Asia-Pacific as an economic power, the Philippines could benefit by as much as $300 billion in the real estate industry.
The forecast was delivered by David LeeChiu, who urges that certain structural changes be made such as relaxing rules on foreign ownership and longer lease terms. The government should also build on the country's economic gains while large fund managers remain hesitant to invest in Philippine property.
He says the Philippines is fundamentally sound, but could do so much better if it were less restrained.
The predicted growth comes from seeing the aggressive investment into the property sector by top companies such as Ayala Land and SM Prime. The figure comes from predictions of the Asia-Pacific real estate market to account for as much as 48.8 percent of global real estate by 2031.
To meet that figure, in addition to reforms in the law, the Philippines could start by promoting investment opportunities through the World Economic Forum, which is being held in Manila. LeeChiu also recommends lowering corporate taxes, which are already one of the highest in the region and providing credible master planning for foreign investors.
Even with the recent global financial crisis, the trend still points to further growth.