The retail industry goes hand in hand with real estate. An upsurge in retail businesses means more malls, commercial establishments, and shopping destinations. Prospects look bright in 2015, with about 220 million square feet of shopping centers expected by year-end.
2015 is upon us. What does the forthcoming year herald for the property industry? According to experts, the market for real estate is poised for further growth, thanks to several key factors.
5. The retail industry
CBRE Asia Pacific, an international property advisory firm, recently issued a report that identified the Philippines as among the key growth markets in retail within Southeast Asia.
Dubbed "The New Age of the Asia Pacific Real Estate Market,"(1) the report noted that over 250 international establishments were launched in the country in 2014, among them coffee shops, restaurants, mid-range fashion retailers, and luxury and business enterprises.
The upsurge in the retail sector owes its thanks to the growing middle class and the increase in OFW remittances, identified as other key factors in the continued prosperity of the property sector.
Up to 70 percent of the country's GDP comes from consumer spending, according to the report. To date, three Philippine shopping malls rank among the world's 10 largest malls(2). About 220 million square feet of shopping centers are expected by the end of 2015. The upsurge in developing mixed-use townships, each with an integrated retail component, also lent to the prosperity of the retail industry. Currently, a number of upcoming mixed-use townships are poised to launch new shopping malls and retail zones.
The retail industry goes hand in hand with real estate. An upsurge in retail businesses means an upsurge in real estate: more malls, commercial establishments, shopping destinations -- from the posh and high-end to the community shopping centers, the retail sector looks promising in the coming year.
Likewise, another industry is on an upward trajectory, prompting growth in the real estate sector. Take a look at how tourism affects the market in 2015, in the next article.