By Ayen Infante
12/10/2009 [ tribune.net.ph ]
Global property services giant CB Richard Ellis Group Inc. (CBRE) said it wanted to see the next administration embracing more foreign investors who may be interested to buy land in the country.
CBRE chairman Rick Santos told reporters yesterday that despite the local property market showing its flexibility in surviving the global financial crisis in 2009, its positive performance should continue and should be sustained by the next president.
Santos said the level of optimism on the market will also be largely dependent on the outcome of the elections next year.
“We are hoping for a positive transition of power, from strength to strength,” he said.
Allowing foreign businessmen to buy land here comes as the best option for the property market to go up, Santos said.
“Let them buy land, they cannot take that with them, maybe the next administration would seriously consider this and would let foreign investors come in in the property sector,” he added.
Under Republic Act 7652, otherwise known as the Investors’ Lease Act, foreign companies or individuals allowed to lease land for up to 50 years renewable for another 25 years.
Local real estate law, however, does not allow outright ownership of real property by foreigners while Filipinos and former Filipino citizens and Filipino-majority owned corporations are permitted to own land, buildings, condominiums and townhouses.
He said the local property market is equipped to compete head on with other sites in Asia and in the world as an ideal location for businesses, especially for business process outsourcing (BPO) and retail activities among others.
“Manila is at par with the main cities of the world, and will continue to expand, through strong demand in retail sector and certain sectors of residential sales that continue to exceed expectations,” he added.
For the most part, the BPO sector continue to affect the developer’s plans since they account for a good portion of the demand for office spaces.
The BPO industry currently employs 500,000 people and is expected to provide 750,000 jobs next year to one million in the next two years.
Meanwhile, some changes are being injected in the property sector with the introduction of the Real Estate Investment Trust (REITs) law which is seen to further encourage investments in the country. Emphasis on green buildings and other sustainability efforts were also raised.
Under REITs, individuals can participate in large-scale real estate projects as small investors. This will ease the financial burden on developers and will generate capital for new developments and expansion.
Also, in pursuing green building certification, developers are seen to pave the way for a win-win situation for themselves and their clients as “green developments save money, create healthier environment and cleaner communities.
CBRE offers strategic advice and execution for property sales and leasing; corporate services, property facilities and project management; mortgage banking; appraisal and evaluation; development services; investment management; and research and consulting.
___________________________________________________________________________________
