Richmond Mercurio (The Philippine Star) - June 3, 2016 - 12:00am
MANILA, Philippines - Decentralization in the Philippine real estate market is in full swing which bodes well to the incoming administration’s goal of promoting inclusive growth, real estate advisory firm CBRE Philippines said.
With Metro Manila long been considered the country’s center of development, CBRE Philippines said other areas such as Laguna, Cavite, Bulacan, Pampanga, Cebu, Bacolod, Iloilo, Davao, Cagayan De Oro and Zamboanga are gaining investments for their economic potential.
The firm said real estate development is beginning to grow at a faster rate in these secondary sites as returns on investment have been becoming quite favorable.
“Developments in these secondary sites were initially limited to the local developers. Over the past several years, the national developers started to enter these sites on a growing scale. This can be seen as a positive situation as this encourages local developers to step up in terms of putting up better quality buildings and structures. This in general will promote growth in terms of employment and other opportunities as well as providing better facilities for the local populace,” CBRE chairman and founder Rick Santos said.
As Metro Manila continuous to become saturated, Santos said the need for developing new areas has become imperative to accommodate the growing demand in the market.
“Opportunities can be found in locations such as Laguna, Cavite, Bulacan and Pampanga, which are all accessible via land transport. Crucial to the further development of these locations is to shorten the travel time between Metro Manila and these areas,” he said.
The real estate advisory company noted that constantly improving infrastructure as well as completion of pending public-private partnership projects would further enhance the growth of these alternative locations.
CBRE Philippines said these improvements would likewise keep the momentum of the country’s real estate market going in the coming years.
“Coupled with the improved physical accessibility brought about by newly constructed and rehabilitated roads, bridges and transportation facilities have opened the opportunity for some areas outside of Metro Manila to evolve into new business districts,” it said.
“Overall, the combined growth of BPOs and infrastructure development coupled with prudential macroeconomic policies will further boost the country’s competitiveness,” CBRE Philippines added.