(The Philippine Star) | Updated July 22, 2014 - 12:00am
MANILA, Philippines - Commercial real estate consultancy and advisory CBRE Philippines highlighted Cebu as one of the fastest-emerging real estate markets in the country during the Philippine Capital Markets Investment Conference organized by the Philippine Stock Exchange (PSE).
“Exciting expansions and new developments are coming into Cebu in the following years. Current economic conditions are opening more opportunities for local and foreign investors across real estate sectors,” said Rick Santos, founder and chairman of CBRE Philippines, at the conference held recently at the Cebu Marriott Hotel.
In terms of office developments, Cebu continues to be a solid BPO (business process outsourcing) destination as well as a choice for expansion of traditional firms—ranking in global research firm Tholons’ top ten list of outsourcing locations. While office space developments are typically concentrated in Cebu Business Park and Cebu IT Park, activity can also be seen in surrounding areas.
Cebu’s retail sector is likewise seeing solid demand from international investors with the continued entry of global brands, seen as a driver in positioning Cebu as a sought-after shopping district in the ASEAN region.
On another note, Santos mentioned the opportunities that can be explored from Cebu’s other resources.
“Global players from the industrial sector are taking advantage of Cebu’s large dedicated land area and local manpower for the expansion of their operations,” he explained. “Despite the continued expansion of light industries, heavy industries are now being pushed to drive the market. Efforts from regional government agencies aimed at forging alliances and solidifying negotiations with investors are currently underway.”
Santos also cited the proliferation of expatriates and outsourcing companies in Cebu, which further encourages developers to focus on resort community type of projects, especially in Mactan. In line with accommodations, hotel occupancy is also on an uphill trend due to increase in tourism and market activities.
“Sustaining the demand and supply is paramount in helping Cebu maximize its potential. Especially with the congestion of Metro Manila, Cebu is proving to be a viable option for practically all real estate segments,” added Santos.
The PSE Philippine Capital Markets Investment Conference brought together experts from various fields such as government, real estate and finance in a discussion about the economic prospects of the country and the outlook for capital markets.