Real Estate Business: More Fun in the Philippines
by on August 23, 2013 | Categories: Real Estate Industry
Today, corporations target multi-level and multi-national proliferation. For those who are in the business line, real estate marketing may just be the right career to take. With the entrance of multi-national investments in the country, growth and development for opportunity-seekers in this field has become possible than in the previous years.
Real estate investment has been the business orientation in the country ever since globalization has become a trend. Yet it is only during the last ten years that its remarkable impact to the economy has manifested. This market has set the trend for businessmen and young entrepreneurs to go international and become globally competitive. While taking advantage of the blooming opportunities, investments have become particular in targeting real estate in the Philippines.
Unknown to most business aspirants, the Philippines has acquired the title of being “the hottest Real Estate Property Market in Asia”. Some business circles have even declared that the Philippine office sector is among the fastest expanding in Asia – and this is happening at unprecedented levels. Particularly in Metro Manila, especially in Makati City, businesses on office rentals have increased in growth alongside other Asian countries like Tokyo, Taipei, and Bangkok. According to officials of real estate advisory firm CBRE Philippines in an interview on the 5th of June 2013, because this offers economic growth, credit upgrades, cost-effective rental rates, and expatriate deals, vacancy levels decreased to as low as 3.21% (in Metro Manila) and 5.07% (in Makati). Because of the decline for office space, demand on rent increased while increasing the rent rate up to P890.27/sqm per month during the first quarter this year. Business places particularly in Manila and neighboring cities achieved decreased vacancy rates, attracting investors for opportunities.
What led the country to pursue this economic track? Business moguls and expatriate investors find the Philippines to be one of the finest business spaces in Asia for several reasons. This can be attributed to the orientation of the Philippine government in terms of economic growth and development – the more real estate investment it gets, the more stable the economy becomes. This can be observed on the country’s guidelines on property ownership, which apparently are less restrictive compared to that of Hong Kong and Singapore. Real estate taxes are relatively low, and yet the quality and opportunity you can get from the properties are, indeed, cost-effective.
Investors are also attracted to the country’s branding: “It’s more fun in the Philippines”. The vision to be one of the hottest tourist spots in Asia is a factor for considering real estate business. It is a joint effort to ensure that foreigners who come to the country will have a nice, hassle-free experience of Philippine visit. This gave way to businessmen’s investments on real estate establishments such as apartments, condominiums, and other easy-access and convenient places to stay. Some of these even offer affordable cost which attracts clients further. The value of hospitality may be the motivation behind the success of some real estate developers that offer cost-effective places to stay at while keeping in touch with business establishments – a strategic place to own. Of course, some real estate can be converted into tourist sites that generate more and more income. Tourism economically influences the Philippines’ real estate status.
Booming industries like Business Process Outsourcings (BPOs) are another reason why the real estate market is a hit in the country. BPOs are evidently flourishing in some parts of the region like BGC, Muntinlupa, and Quezon City. This industry also sets foot on other parts of the country like in Cebu, Davao, and others where real estate developers are very particular with BPO buildings and offices. BPOs attract young and talented labors, providing them a different working environment and proper compensation. On the contrary, BPOs are attracted to establishing offices in the country because of cheaper real estate rates and cost of living in general.
Indeed, the country has achieved its title because of the joint vision and effort to bring the Philippines one step closer to the international business stage. Setting favorable conditions enabling foreign investments to acquire Philippine real estate properties open new opportunities that have even bigger returns. Strategies and development plans can even maximize the use of vacant properties, and so, economic players take this opportunity to utilize these properties and make profit from them. Perhaps, the Philippines may be considered as one of the hot spots for real estate investments.
Young professionals must play along with this game. There seems to be no loss in this track. Who knows? The Philippines might even dominate real estate business all over the world in the near future – real estate business in the Philippines is indeed more fun.
Image courtesy of Arc Reyes via Flickr