The Philippines was once a great country in the past. It was even called as the “Pearl of the Orient.”
The country, after the World War II, was the 2nd wealthiest nation in Asia, second only to Japan which is still one of the wealthiest in the world.
However, during the 1960’s, the economy performance was beginning to deteriorate and decline due to slow economic growth and different economic recessions. Only in 1990’s the country experienced its economic recovery because of economic liberalization.
The economic hardships before affected the real estate industry.
As what Mr. Eric Manuel from the Urban Land Institute said, “We were once on the top, now we are in the bottom.”
The country’s Gross Domestic Product for this year is at 3.96%, which is 2.53% lower than Indonesia, currently the Southeast Asia’s largest economy.
But according to ULI emerging trends for 2012, the Philippines has the most predictive industry forecast.
Statistics shows that Manila has fair grade in City Investment Prospects (5.03) and City Development Prospects (4.97).
According to Mr. Manuel, “we have the right ingredients to get back on top.”
The first is urbanization. In order to be on top, urbanization is important. It is projected that by 2030, 80% of the Philippines will be urbanized. Manila is currently 20% urbanized. The Philippines need to have urban renewal.
Best practices for the urbanization are to explore and a responsible land use. And the country needs collaboration for the disparity of the poor and the rich.
The second ingredient is the young demographics and population of the Philippines.
This generation will be the future consumers and workers in the country, which is good for the real estate industry.
In the range of 20-24 years old, it accounts for 57% of the population while the range of 25-29 accounts for 65%.
The third ingredient is that all real estate professionals can start the journey today. All real estate professionals can do collaboration in order to start the journey.
In 2012 and beyond, the Philippines will experience the same as what other Asian countries will experience: principal source of capital and investment opportunity due to the favorable demographics of the region, increasing urbanization, and urban renewal.
The Philippines, according to the ULI, jumped from 20th to 18th place in international property investment rating.
The factors that raised the ranking for the Philippines, which was also described as a “fast emerging market”, were Manila’s progress in commercial investment prospects, surge in foreign investments in the BPO sectors, and the promise of change by the government.
The massive growth in the country’s real estate industry is fuelled by the business and industry sectors as major companies choose to invest in Metro Manila and build their offices and towers, and inhabited by reasonably workforce. As what discussed above, the youth generation is an important ingredient to continue the growth because they will be the future workers.
With these developments, the Philippines is once again showing to the international community that they are slowly getting back to the game and improving its economy.
With sources from: Philippine Daily Inquirer, Wikipedia
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