Why Should I invest Real Estate in Philippines?
With the high property prices in Singapore, many investors are looking overseas to find attractive investment opportunities. Besides the developed markets such as the US, London and Australia, there has also been interest in looking at fast-growing emerging markets such as the Philippines. In this article we’ll take a look at the Philippines real estate market, the type of properties you can invest in, what investors should look out for, and how to invest in it.
Why invest in Philippines real estate? Given the difficulties in the developed economies of the world, you might wonder why foreigners would want to purchase a property in the Philippines. The main reasons they have started to do so at an accelerating pace include: 1. The rapidly growing Philippines economy sets the context for rising property prices. The Gross Domestic Product (GDP) of the Philippines rose by 7.8% in the first quarter of 2013, with expectations for strong growth for the rest of the year. From 2002 to 2012 the average annual GDP growth rate of the Philippines was 5%. 2. Property prices in the Philippines are one of the lowest in Asia, up to 80% lower than Singapore for premier city centre properties (US$2,807 per square meter versus $16,350 in 130610 Figure 1Source: Global Property Guide 3. Rental yields in the Philippines are one of the highest in Asia, at around 7%, versus just 3% in Singapore. 130610 Figure 2Source: Global Property Guide 4. The stable and strong growth of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) industries in the Philippines increases both the income of the locals and also the number of expats, which creates demand for apartment rentals. What foreign investors should take note of Foreign ownership of Philippines property can occur under the following circumstances:
Types of properties you can invest in We will now take a look at specific examples of the range of residential properties that you can invest in, and what pricing and quality is like. Information on the following properties are provided courtesy of Century Properties Group (CPG), a leading property firm in the Philippines that offers a full-range of services including property development, sales and marketing, and property management. One of the most experienced real estate companies in the industry, CPG has built over 22 buildings (with over 4,200 units) and 720 homes, with a 100% completion rate of all its projects. Century Property Management Inc. can help unit owners manage their property for rental and re-sale. |
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Key Success Factors
PHILIPPINES: One of Goldman Sachs N11 Countries
The global investment banking and securities firm Goldman Sachs has named the
Philippines as part of the N11- the next 11 countries with highest economic potential
in the world.
Forming part of the N11 are Bangladesh, Egypt, Indonesia, Iran, South Korea,
Mexico, Nigeria,Pakistan, the Philippines, Turkey and Vietnam
All 11 countries demonstrate population growth rates above those Western
developed economies, indicating greater consumer market potential over the medium
term. Large populations represent a wide potential pool of consumers for business to
target; while high growth rates mean that this market will expand rapidly, providing
proportionally more potential customers.
Philippines as part of the N11- the next 11 countries with highest economic potential
in the world.
Forming part of the N11 are Bangladesh, Egypt, Indonesia, Iran, South Korea,
Mexico, Nigeria,Pakistan, the Philippines, Turkey and Vietnam
All 11 countries demonstrate population growth rates above those Western
developed economies, indicating greater consumer market potential over the medium
term. Large populations represent a wide potential pool of consumers for business to
target; while high growth rates mean that this market will expand rapidly, providing
proportionally more potential customers.
6 TOP REASONS: WHY INVEST IN PHILIPPINE REAL ESTATE
Positive Economic Growth
Consistent Increase of Capital Values
Attractive Rental Yields
Greater yields as Compared to other investments
Affordable and Less expensive compared to other countries
BEST climate for “Live- Work- Play”
Consistent Increase of Capital Values
Attractive Rental Yields
Greater yields as Compared to other investments
Affordable and Less expensive compared to other countries
BEST climate for “Live- Work- Play”