Many factors have contributed to the current growth in real estate. Among them are rising investments, success offshore and outsourced and stable economic growth. According to a leading consultant in the field of real estate, David Leechiu, the market for expensive residences and office space will continue through 2012. Properties in Manila are seeing the development of office and residential high-rise buildings.
Reports on CNBC classified the Philippines at the top position in countries expected to have long-term economic growth. They attribute it to fast growth in the population. It came in ahead of India and China. Goldman Sachs included this country in its listing of up and coming economic powers. Sharing the list are the N-11 countries, which include South Korea, Indonesia, Mexico, Iran and Egypt among others.
As the U.S. economy grew stagnant in 2011, Eurozone experienced a crisis and 93 percent of U.S. based equity funds were beaten by the N-11. Another group of developing countries, including Brazil, South Africa and Russia was nearly 89 percent behind.
There is competition to obtain quality office space in Manila as compared to Asian countries. Entrepreneurs as well as established companies from around the world are locating in the Philippines to enjoy attractive prices and a favorable group of prospective employees. The offshore and outsourced segment of the economic picture insists on premier offices. The risk issues of the last ten years are ignored as the upward trend continues.
Nearly half of companies moving into offices are locating in Makati. It is considered the primary business capital. Luxury brands and expanding international retail sellers move into the area. But, businesses are not alone. Residential condominiums are going up as well.
The president of Alphaland Corp. a prominent developer considers Makati to be the financial capital and business center for property marketing as well as other businesses. It is the primary location for those buying any residential or renting any offices in an upscale market.
Growth in real estate continues followed by growth in other areas of the economy in the Philippines.