Submitted by: Jitruyt Tora
Based on the Q3 2011 Real estate Market Report Philippines published by a Philippine Real estate firm, KMC MAG Group, the economy of the Philippines is on the rise which in result is moving the commercial real estate industry in the Philippines to increase. The report mentioned that for this year, the rapid progress of the economy was due to the requirement of the BPO Industry.
In terms of the current improvements with the commercial real estate in the Philippines such as fort bonifacio office space, Makati office space and manila office space, rental rates are raising caused by the growing requirement of office spaces in Metro Manila and the low vacancy rate despite the moving of BPO firms into reasonably priced buildings. In terms of vacancy rates, all central business districts in Metro Manila have rates under 10%.
There also have been growing requirement by foreigners on PEZA and BOI buildings because buildings certified by these organizations offer vat o tax exemptions. The demand for office spaces in Makati are also expected to downfall due to on-going constructions of additional office spaces in Bonifacio Global City, Alabang and Quezon City. In fact, Bonifacio Global City is greatly turning into the prime location of office space. As mentioned, the demand for commercial space is mostly influenced by the demand of BPO businesses.
The residential real estate climate in the Philippines such as the market trend of fort bonifacio condos, Makati condos, and ortigas condos is also going through improvements. In fact, the continuous development of condominiums in these areas increased the total vacancy rate in Metro Manila. In contrast to the drivers of commercial space which are the BPO companies, the drivers of the demand for residential space are the OFW (overseas Filipino workers) and foreigners who chose the Philippines as their retirement place.
Also according to the report, several real estate developers that have been actively launching residential projects and pre-selling of units is a popular pattern. Luxury condominiums are being built for OFWs and teh expat community. Mid-range condominium buildings are estimated to be finished in Fort Bonifacio Global City and Makarti by the Q3 of 2012 which will again increase the vacancy rates and lower down the prices. In terms of prices, pre-selling prices of residential properties are also expected to increase as the trend of purchases of OFWs and local investors will continue. Energy-efficient and green condominiums are also in demand rather than old and inefficient buildings.
Lastly, KMC MAG Group forecasts that due to the continuing to be the world s largest business process outsourcing provider, BPO companies will take up the oversupply of office spaces in the next 12 months as well as demand for more office spaces. More energy-efficient condominiums and offices will also be seen constructed in the metro especially in central business districts of Fort Bonifacio Global City, Ortigas, and Makati. Aside from these, there will also be a mix type of residential improvements in these areas with luxury residential developments im Bonifacio Global City and Makati abd mid-level condominiums to the secondary market for both short term and long term tenants.
About the Author: for more info please do visit:
kmcmaggroup.com/research
Source:
isnare.com
Permanent Link:
isnare.com/?aid=1147982&ca=Business