Philippines’ Property Market Booming
November 25, 2010 - Philippines
Philippines is experiencing the best days since its 1990's Ramos era in the property sector; the country is driven by a strong demand and investments as it becomes one of the top favorites in the region, alongside Vietnam and Indonesia, according to property management group CB Richard Ellis Philippines.
Rick M. Santos, chairman and founder of CBRE Philippines, has announced that take up of office spaces this year is at 250,000 square meters and is forecast to rise by 10 percent in 2011 with Fort Bonifacio and Ortigas being the preferred choices for office spaces.
"Due to strong demand, developers continue to churn out new office, retail, hotel and residential projects.
The Philippines is benefiting from the Aquino administration's good infrastructure, good governance leadership stance," Santos said.
The banks are also lending and the real estate firms are showing high earnings and growth.
Santos believes that the market is back due to very good economic fundamentals since 1996.
He said that the most dominant areas for office spaces are no longer limited to Makati, but Global City, Ortigas, Eastwood, Cebu Business Park, Clark and other cities in the regions that are hosting BPO operations.
While other areas like Global City, Ortigas and Alabang are launching a lot of new buildings next year, there is only one major building coming up in Makati in 2011, the LEED-certified Zuellig Building along Paseo de Roxas.
Currently there is an estimated 6.7 million square meters of existing office supply in Metro Manila and 397,000 square meters.
Makati rental rates are P850 per square meter, yet due to decreased rentals in 2008, there could be an upward pressure for rental rates in Makati.
Trends, property prices, property market, real estate market, CB Richard Ellis