Confident that change is coming, 9 out of 10 Filipinos in the UAE say now is the best time to invest in Philippine property. This is not based on gut feel, rather on strong fundamentals: The Philippines is now the second fastest growing economy in Asia.
DUBAI: The Philippine real property sector is ready to roll, buoyed by confidence in the new administration, which is moving to ease restrictions to boost foreign direct investments (FDIs) and spread development across the country. In a nutshell, officials said, this means affordable property prices at attractive loan interest rates with overseas Filipinos’ buying power remaining high.
In the UAE, that confidence is confirmed in a survey by New Perspective Media, publisher of The Filipino Times, which revealed that a huge number of Filipinos – 98 percent of the total respondents – believe that “true positive change is coming to the Philippines,” while 97 percent said they “expect improvement in the quality of life” back home; another 93 percent said the investment environment is “improving.” Moreover, 90 percent of those interviewed said “now is the best time to invest” in the Philippines. Karen Remo, Managing Director of New Perspective Media, said: “A vast majority of the Filipinos in the UAE are confident in the improving investment scenario in the Philippines.
This is an affirmative boost to the new administration of the Philippines as the economy’s growth registers stellar performance in recent months.” “Our survey supports the increasing appetite of Filipinos and the international community in investing in Philippine real estate. This is in response to the positive forecasts of good investment returns in the Philippines, which is now being considered as Asia’s rising tiger,” Remo added.
Fastest economy
According to official figures, the Philippines is the second fastest growing economy in the second quarter of this year, growing at seven percent compared to the same period last year, followed by China (6.7%), Vietnam (5.6%), Indonesia (5.2%), Malaysia (four per cent), and Thailand (3.5%).
India registered the highest growth at 7.1% in the second quarter. The strong economic growth in the Philippines is driving demand in the real estate market. According to Oxford Business Group, the construction and real estate sectors make up around 20 per cent of the Philippine economy, slightly ahead of manufacturing. KMC Savills, a leading global think tank specializing in real estates, has said the Philippine “fundamentals help keep the property market attractive.” Michael McCullough, its cofounder and managing director, said the country can rest assured that FDIs will be arriving in legions owing to its “swift-growing market, solid economic fundamentals and political stability.”
A report by Ken Research says the Philippine real estate market is driven by rapid urbanisation, increasing employment by the BPO (business process outsourcing) sector, disposable income, surging OFW remittances and growing real estate investments. And the increase in personal disposable income of consumers as well as growth in commercial and residential projects have created a demand of real estate property in the Philippines.
Tradingeconomics.com, citing figures from the Philippine Statistics Authority (PSA), said the country’s economy grew an annual seven percent in the second quarter of 2016. “It was the fastest expansion since the June quarter 2013,” it said, adding that for the first six months of 2016, “the economy expanded 6.9 percent, faster than a 5.5 percent growth in the same period a year earlier.” Given this, another global real estate consultancy firm, Colliers International said, the property market is “expected to continue treading its growth path.” “Macroeconomic fundamentals remain robust and should sustain the Philippine property market’s growth for the remainder of the year,” Colliers said.
Antton Nordberg, KMC Savills head of research, noted that another growth factor is the government’s plans to lift foreign ownership rules from 40 to 70 percent, while also lifting limits on land lease from 25 to 40 years. “The world is taking notice of the Philippines as it is a promising investment destination. Raising the cap on foreign ownership will complement this,” Nordberg said.
