2015 was considered a good year for real estate, since there have been more condominiums and business centers rising up in most of the major cities and urban areas in the Philippines. And since it’s the first month of the year 2016, it’s only appropriate to start wondering whether the year of the Fire Monkey will bless real estate vendors and investors as much as the past year did. According to CBRE Philippines, Philippine real estate will continue to grow and expand through 2016 because the Philippines remain a BPO powerhouse.
In addition, CBRE Philippines predicts that the country will have a GDP which will constantly rebound from 5.6% to 6.4% within the first and second quarter of the year. With these estimates in hand, it’s assured that real estate investments will continue to flow positively. It’s not just CBRE that has these estimates, by the way; even major financial agencies like the International Monetary Fund (IMF), the Asian Development Bank (ADB), and Standard & Poor’s (S&P) have produced reports stating that 2016 is a good year for aggressive real estate investment because of the country’s recent economic growth.
The BPO industry will remain a strong force in real estate investment. With major cities, like Manila, Cebu, and Davao rapidly converting huge vacant lots into BPO and IT offices, more and more condominiums, townhouses, and apartments will also rise to cater the young professionals moving into these major cities for their careers. Office rentals in the Philippines also continue to be at the lowest and at the best value in any Asian city; with only $ 29 per square feet of office space rent, this is an offer that most BPO companies can’t refuse.
Of course, it’s not just the BPO industry that’s helping the Philippine real estate in a positive light. There’s also the country’s tourism industry. The first few months of the year is always the time when tourists and expats are interested in buying land in certain tourist spots in the country in order to convert them into beach resorts or their own private retirement homes. The same goes for hotels, apartments and condominiums for rent. With more and more hidden tourist spots being discovered thanks to social media and the Internet, so will the demand for temporary lodgings for visiting tourists too.
Only time will tell whether the real estate market will continue to grow or burst in 2016. With the presidential elections coming in, there is a slight chance that certain policies involving real estate ventures and investments might be affected, in both positive and negative ways.
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Agency: Reality Homes
