Enjoying a better life in the UAE and confident of the continuing economic growth back home, Filipinos in the UAE have showed a resounding optimism, with 90 percent expecting improvement in the quality of life, both in the UAE (90.20%) and in the Philippines (90.19%).
According to a survey commissioned by New Perspective Media (NPM), 80% of Filipinos in the UAE believe now is the best time to buy a property, with 74% confirming their plans to invest in the country’s booming real estate sector.
The results of the survey, which asked 1,890 respondents, show a dramatic increase in the number of Filipino investors and would-be investors compared to 2014, when a similar survey conducted by NPM found that only 20% were planning to invest in property.
Fifty three percent opt to buy a house and lot, 37% prefer condominium, 6% opt for commercial/office space while 4 % prefer lots only. The 7 most preferred locations are Manila, Cebu, Cavite, Tagaytay, Laguna, Bulacan and Davao.
PPIE
The report came as the Filipino community preps up for the much-anticipated fifth edition of the Philippine Property and Investment Exhibition (PPIE) happening this weekend, Sept 22 to 23, at the JW Marriott Hotel in Deira, Dubai.
The PPIE, the longest running and most trusted Philippine economic and investment forum and exhibition in the region, is a one-stop event offering a diverse range of investment options along with expert guidance and assistance for funding.
Karen Remo, Partner and Managing Director of NPM, organizers of PPIE, said: “Since its inaugural edition in 2014, PPIE has helped educate more Filipinos invest in real estate and how to make a sound investment from it. The numbers speak for itself – from two out of 10 who wanted to invest three years ago, to eight out of 10 this year. This is a clear indication that we are now seeing a big wave of new investors.”
“Figures from the World Economic Outlook, IMF’s flagship publication, show that the Philippine economy is growing nearly twice the global GDP growth rate and three times the growth of advanced economies. The market optimism is backed by the strengthening of the purchasing power of Filipinos in the UAE and the continuously growing economy back home,” Remo added.
Economy
The survey revealed that some 76 percent of UAE-based Filipinos are convinced there is no way but up for the Philippine economy, whose GDP accelerated by 6.5% in the second quarter of the year as stated in a recent report by global real estate think tank, Colliers International.
Tradings Economics, which provides global statistical database, raised overseas Filipinos’ confidence, saying the Philippine economy is forecast to advance between 6.5% and 7.5% this year. Bloomberg Market said the Philippine GDP is forecast to grow by 6.5 % annually in the next three years.
The fast-growing economy is further beefed up by President Rodrigo Duterte administration’s economic agenda, anchored on the government’s two-pronged 2017-2022 Philippine Development Plan, which is hinged on massive infrastructure projects of up to Ph8.4 trillion till 2022 and the decentralization of economic incentives.
The infrastructure project is at least five percent of the projected GDP, which is two percent more than previous years’ spending. The National Economic and Development Authority (NEDA) said the resulting growth will raise an average Filipino’s per capita income from $3,550 (Ph181,500 or Ph15,125 a month) in 2015 to at least $5,000 (P256, 000 or Ph21,300 a month) in 2022.
More disposable income, favorable exchange rates
This means more Filipinos will have more money to spend in the coming years and could therefore afford real property investment with help from their relatives working abroad.
What this will do, experts said, is speed up the increase in the appraised value of real properties, which all the more makes it opportune for Filipinos working abroad to start banking on this investment tool.
The peso-dirham rate which has been hovering at near P14 levels in recent weeks – the highest in over 10 years. Remittance companies said the exchange rate will most likely hit the P14.20 mark by year-end.
A P3.4 million condo unit five years ago when the peso dirham rate was at Ph11 range would cost around Dh309,000; at the current Ph14 rate, that would be Dh245,000 – a difference of Dh64,000, meaning you will have bought the condo at a 26 percent discount.
Thomas Mirasol, Chief Operating Officer and Senior Vice President at Ortigas and Company, said: “The strengthening of the dirham to the peso will certainly make it relatively easier for anyone earning dirhams to buy any Philippine product. If we look at the exchange since 2013, the peso has generally weakened against the dirham.”
PPIE 2017 is sponsored by Greenfield Development Corporation; and participated by Ortigas and Company, Ayala Land, DMCI Homes, Hausland Development Corporation, Sta Lucia Land Inc., Duraville Realty and Development Corp., Megaworld International, SM Development Corporation, Extraordinary Enclaves Inc., Vendomaster, Al Alfiah Filipino Private School, UAE Exchange, LBC Express, Inc., Can-Quest International Immigration Services, Enagic Kangen Water Equipment LLC, Layla Cosmetics, Viva Insurance Brokers LLC, Gulf Law, Middle East Karate Academy, Philippine Consulate General, Social Security System (SSS), Pag-IBIG FUND, FilClub Community of Dubai and the Northern Emirates, and Bayanihan Council-Abu Dhabi (exhibitors); and supported by The Filipino Times (official Filipino newspaper), Tag 91.1 (radio partner) and The Filipino Channel (Filipino TV partner).
