No foreseen slowdown in Philippine real estate – CBRE

MANILA, Philippines – Real estate consultancy and service provider CBRE Philippines yesterday allayed fears of a potential slowdown in the real estate sector as a result of a shortage in skilled construction workers in the country.

The lack of adequately-skilled workers has reportedly been weighing down private building activities nationwide due to construction delays.

“It’s a matter of developers’ management. Developers are greatly dedicated at completing their projects so whenever there are delays, it doesn’t usually take long, especially that they know they have commitments,” said Kash Salvador, CBRE Philippines associate director for investment properties and capital markets.

CBRE Philippines, which will undergo a major rebranding starting next year, said it remains bullish on its prospects for the country’s real estate market.

“Over the medium term, we expect to see sustained economic growth in the Philippines, fuelled by favorable demographics, continuing foreign direct investment, further BPOs, strong overseas remittances and continued infrastructure development – all of which will drive robust demand in the real estate sector,” CBRE Philippines CEO Rick Santos said.

“The BPO industry continues to grow as economies in the West recover. Outsourcing continues to be one of the most viable options for these companies to cut on cost and to operate efficiently, and the Philippines remains one of the best destinations for these outsourced jobs. This has been driving the office market growth for the past several years,” added Jan Custodio, CBRE senior director for global research and consultancy.

Santos had previously announced his decision not to renew his existing franchise agreement with CBRE and will transition his entire company to the new brand of Santos Knight Frank effective Jan. 1, 2017.