Rick Santos from Santos Knight Frank in The Philippines explains that the country "remains as a leading real estate market in the region based on an impressive 2017 performance and with huge potential for growth in 2018." Closing the previous year with a strong annual GDP growth of 6.7%, the Philippines will continue to see sustained expansion driven specifically by a dynamic real estate sector in 2018, revealed Santos Knight Frank. The firm expects even greater movement this year across key real estate markets as investor confidence in the Philippines remains high and the government’s infrastructure expansion and fiscal reforms go into full swing.
Rick Santos, Chairman & CEO of Santos Knight Frank says: “The Philippines remains as a leading real estate market in the region based on an impressive 2017 performance and with huge potential for growth in 2018. From an investment perspective, the country’s sound macroeconomic fundamentals, a talented labor pool and the growing middle class are still the country’s main edge and will continue to set us apart from other Asian markets.” Most recently, the Philippines advanced two notches higher at the World Economic Forum’s 2018 Inclusive Development Index to reach 38th place, reflecting progress to achieve inclusive growth.
Critical to sustaining these developments, the government’s “Build, Build, Build” program will significantly benefit from warming ties with China through its Belt and Road Initiative. With about USD24 billion of funds pledged to the Philippines, Chinese companies see vast opportunity in the Philippines’ population demographics, rising income and urbanization trends. Santos Knight Frank reveals three markets which will benefit the most out of these events in 2018:
Critical to sustaining these developments, the government’s “Build, Build, Build” program will significantly benefit from warming ties with China through its Belt and Road Initiative. With about USD24 billion of funds pledged to the Philippines, Chinese companies see vast opportunity in the Philippines’ population demographics, rising income and urbanization trends. Santos Knight Frank reveals three markets which will benefit the most out of these events in 2018:
1. Offices
Joey Radovan, Vice Chairman and Head of Occupier Services & Commercial Agency, says: “More than 1.4 million sqm of leasable office space is expected to add to Metro Manila’s supply in 2018, with 40% coming to Bonifacio Global City. This incredible growth in supply will be met by sustained demand, specifically by BPO companies which still drive demand in the sector.”
2. Logistics
Calvin Javiniar, Senior Director of Investment & Capital Markets, says: “The huge appetite for consumption has been a stimulus for logistics property demand. With a booming traditional retail and e-commerce sector, there will be a greater need for warehousing and distribution centers near urban areas.” Santos Knight Frank projects approximately 560,000 sqm in a gross leasable area of upcoming retail developments in Metro Manila up until 2019. Meanwhile, e-commerce in the Philippines is forecasted to grow into a USD10 billion industry by 2025, according to eCommerceiq Asia.
Jan Custodio, Senior Director of Research & Consultancy, says: “The travel and tourism sector has witnessed unprecedented growth over the last couple of years – with expectations to double foreign tourism arrivals from 4 million in 2011 to 8 million this year. This huge demand from inbound and local tourists has sparked an influx of hotels, resorts and gaming to the Philippines, with more than 3,000 hotel rooms anticipated to open this year in the Bay Area, Makati and BGC alone.”
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