CB Richard Ellis – Philippines as “hot” Property Market
by Golden Forum Land, Inc
According to the real estate services firm CB Richard Ellis Group, Inc, rates the Philippines as the “hottest real estate market” in Southeast Asia. Primarily driven by the high demand from business outsource processing (BPO) and tourism markets. Other factors that have a positive impact in the property sector include the stable peso and unabated flow of dollar remittances.
New hotel resort developments in Makati City, Fort Bonifacio, Manila Bay Area, Cebu and Boracay are expected to keep up with the growing tourists arrivals in the country which reached 3.091 million in 2007. CBRE projects tourist arrivals to increase to 3.4 million this year, generating $5.8 billion revenues.
For residential, CBRE expects 18.143 units to be provided from the completion of 28 residential condominiums in Makati that are targeted for completion between 2008-2013.
Some 11, 652 units are expected to come into the market from 33 residential condominiums being constructed from 2008-2012 in Fort Bonifacio.
~Major investors and business are looking at the Philippines since it is one of the largest English speaking nations in the world and has 33.5 million Filipinos in the workforce.” According to Trent Frankum, General Manager of CBRE.
Major multinational BPO operators are currently expanding their presence in the Philippines, among them Accenture which has just leased 1.3 million square feet of space and Teletech which has built facilities outside Metro Manila Financial companies such as HSBC. Citigroup and JP Morgan have been expanding Philippine sites of their respective customer support operations. HSBC currently has four locations which totals 859,200 square feet and plans to open more sites. Citigroup and JP Morgan have 214,812 and 107,400 square feet of space leased respectively.
- CB Richard Elli’s Report June 2008
