Property market to sustain growth

CEBU, Philippines —  Real estate capitalists and developers are encouraged to take advantage of the Philippines’ promising economy and start pouring in money to lucrative and in-demand projects.

Based on the expansion of the country’s economy by 6.2 percent in the third quarter this year, analysts at Colliers International Philippines foresee a sustained property market over the next 12 to 36 months.

Money-making opportunities in real estate will be seen especially in identifying expansion sites and alternatives for outsourcing and offshore gaming firms.

Wide opportunities in building co-living spaces and residential units for the middle income market will continue at least in the medium term.

Flexible buildings, which provide tenants or buyers the freedom on what to do with their units, will also take into the demand side, Colliers said.

The Canada-based global commercial real estate services organization believes that opportunities in real estate, both for developers and buyers, will continue in the Philippines, backed up with the healthy economic outlook of the country.

In the third quarter this year, the country’s 6.2 percent growth makes the Philippines one of the fastest growing economies in Asia.

The improvement was mainly government spending-driven, with public construction rising by 11 percent in third quarter from a 27 percent contraction in second quarter this year.

Private construction rose by 19.1 percent sustaining the 10.4 percent growth posted in third quarter in 2018. This indicates a strong appetite for office towers, residential units (condominium and house & lots), malls, hotels, and industrial parks across the country.

With economic growth for the remainder of President Duterte’s term on June 30, 2022, likely to be anchored on government and infrastructure spending, Colliers is optimistic of a sustained economic strength being supported by an improved credit rating, decelerating inflation, and a higher ranking in global competitiveness surveys.

“We encourage both landlords and tenants to further explore opportunities in the market,” Colliers added.