The Philippines is experiencing a boom in the real estate market. The growth movers of the industry are funds sent home by Overseas Filipino Workers (OFWs) and the robust Business Process Outsourcing (BPO) industry. The real estate sector registered growth of 18.8 percent in the third quarter of 2012, making it the country’s fastest-growing industry.
BPO companies are fueling the demand for office space, said United States of America global property manager CBRE Global Corporate Services, noting that 80% of transactions in 2012 were made by BPOs. The trend is expected to continue in 2013 with the continued growth of offshore outsourcing and the call center industry.
Since 2006, the CBRE reported, over 50 percent of office space leased in the country has been taken up by BPO companies. Multinational companies are moving to the Philippines because of its excellent pool and low cost of skilled labor. CBRE projects that developers will also focus on the mid-income residential market in 2013, reflecting the demand from the growing population of young professionals and their families.
Another USA global property manager, Jones Lang LaSalle, said that more Filipinos are becoming homeowners because of low interest rates and affordable financing conditions. A big number of OFWs invest their money in real estate. CBRE and Jones Lang LaSalle, both international companies that do business in the Philippines, are optimistic that the country will get an upgrade to investment rating in the next six months to further boost the economy and the property market.
We congratulate the Jones Lang LaSalle International headed by Director David T. Leechiu and CBRE Philippines Chairman Rick M. Santos, all the best and success in all their endeavors. CONGRATULATIONS AND MABUHAY!
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