The Philippine real estate market is expected to sustain its growth momentum on the back of the country’s bullish economy and strong investor confidence, according to a global real estate consultancy.
Rick Santos, Chairman and Chief Executive Officer of Santos Knight Frank Inc., said the Philippines has climbed one notch in the competitiveness report, now ranking 56th out of 137 economies across the globe.
“Our high scores in macroeconomic indicators in the (World Economic Forum Global Competitiveness) report is evidence of the Philippines’ long-term attractiveness to investors,” he said in a press briefing on Wednesday.
Santos, in an interview, said the office, residential, industrial and logistics, particularly manufacturing, segments, are expected to boost the real estate market.
“The other sector, which is a sunrise industry, is hotels and tourism, so we see a lot more hotels coming in,” he said, noting also the expansion of gaming companies in the country.
Moreover, Santos Knight Frank is highly optimistic about Metro Manila amid strong investor confidence and sound macroeconomic fundamentals in the Philippines.
“Over the next four years, Manila will see more than 3 million square meters (sq. m.) of new office space added to the market. About 2 million sq. m. of residential space and half a million sq. m. more for retail will come online by 2019,” Santos added.
With a growing number of companies venturing into the global stage, Metro Manila continues to see diversified demand, not only in the office market, but also in the residential sector, where investors from Southeast Asia, China and the Middle East are putting more capital into the Philippines.
“On a regional basis, the performance and fundamentals of the Manila office market look solid. While some of the other Southeast Asian markets are seeing demand remain sluggish and the major Chinese cities are seeing huge amounts of new supply, the Manila market has one of the tightest vacancy rates in the region and looks set for a strong 2018,” said Nicholas Holt, Asia Pacific head of research of Knight Frank.