The Philippine real estate industry has been moving at a very fast phase.
In fact, yesterday’s headline at the Phil. Star, reported by Ms. Louella Desiderio, that Metro Manila has emerged as one of the top five real estate investment destinations in the Asia- Pacific. The information came from a report made by the URBAN LAND INSTITUTE (ULI) and PricewaterhouseCoopers.
We were ranked as number four (4) , going up eight places. This confirmed my forecast made last Dec. 2013, that we were going to have a “Quantum Leap” not only in the Real Estate Industry, but the Philippine Economy as a whole.
The Research done by the Urban Land and PriceWaterhouseCoopers, as shown in their report ” THE EMERGING TRENDS in REAL ESTATE ASIA- PACIFIC 2014 ” was based on an actual survey and personal interviews of no less than 250 of the most influential leaders in the real estate industry.
In my own analysis , I would like to expand the fact that the areas or locations that are and will be very good, goes beyond what the report concluded. For it is a fact that in the case of increase in land values, rentals and yields, one can discover new regional centers that are growing faster than Metro Manila.
The advantage of Metro Manila, or Our National Capital Region is the presence of the 8 most valuable Central Business Districts . These are;
1) Central Makati: Ayala Ave. our ” Wall Street” of the Philippines.
2) The Fort Bonifacio Business Center. This is the most modern CBD, and now the most expensive. The backbone of the Fort is the dominant impact of the Business Process Outsourcing buildings, Best Hotels, Foreign Embassies, Top International Medical Center and Hospital , Location of the Top Legal Firms and Business Establishments, Commercial and Retail areas, and International Schools and Other Institutions.
3) Ortigas Commercial “CBD” center. Bounded by EDSA, Ortigas Ave. , Shaw Blvd. , Meralco Ave. and now Expanding to the Pasig Capitolio Area, covering the Cities of Pasig, Mandaluyong and Quezon City. The Ortigas Center’s Landmarks are , SM Megamall, Robinson, ASIAN Development Bank, The Philippine Stock Exchange, San Miguel Headquartres, and several other Institutions like Poveda , Lourdes School, University of Asia & the Pacific, and EDSA Shang Hotel, Mall, and Saint Francis Church.. To name a few..
4) Cubao Commercial Center on the other hand is the CBD of Quezon City, were its economic base is strong with its Retail establishments, founded with several small and medium scale merchants, a good bargain Wet Market, Transport Hub, and the Araneta Coliseum Landmark.
5) East Wood City in Quezon City, is also a “Lean & Mean” BPO hub. Although relatively smaller in land area, the site is like a “beehive” of Business, Night Life, Entertainment, Retail , Restaurants , and home of Large Multinational Corporations, Bank headquarters, and Call Centers.
6) Muntinlupa CBD corridor, covered by, Ayala- Madrigal Business Center and the Filinvest Commercial Center. This is relatively ” young” area, but with much potential and growth. Home of fine restaurants, Corporate Buildings, BPO’s , Commercial and Retail establishments, and World Class top Hotels.
7) Down Town Manila, or ” CHINA Town” . This is Historically, and traditionally a Business, Trade, Central Wholesale Market, and the Famous Old Manila Center , the ESCOLTA, which is historically , home of the Best and Top Business Enterprises of the Philippines. The Economic base of this CBD is the Port area. This is were most of our Import and Export business originate. It is home of all the shipping and maritime establishments. The Wholesale center of the Philippines, popularly known as Divisoria Market, and now with the Best Malls and Arcades of Chinese goods.
8) The New Emerging and fast growing reclamation area. Extending from Manila, The Cultural Center of the Philippines, to Pasay city, and the World Famous MALL of ASIA Complex. Its economic base is known as the “Entertainment City” were the big time Gambling Hotels are and will be located. Landmarks are World Trade Center, Phil, Convention Center, Hotels, Gloria Maris Restaurant, and other Tourism oriented establishments.
In the Research Report, some of the reasons sited why the Philippines ranks 4th in Real Estate Investment for the Asia – Pacific region are;
1. Young Population and Workforce Demographic advantage
2. Strong Capital Inflows and Remittances from OFW’s
3. Cultural- Educational affinity with the West.
However, I still hope and wish we aspire to reach the number one spot. And to achieve this goal , these are some areas that we need to address, solve and must get it done.
1. Improve the problems of Graft & Corruption in Government
and even in the Private sector.
2. Find a Legal solution to allow foreign ownership of Real Estate so as to attract more investments
3. Finalize and impenitent the REAL ESTATE INVESTMENT TRUST . It is still being held ” hostage ” by the Department of Finance and the BIR
4. Get the Manila International Airport done, finalized and put into proper order and function . We can no longer afford to be ” branded ” as one of the worst Airports in the world!
5. Set up a credible Centralized Research Institute , that will have Objective, Independent, Professional and unbiased Data and Information as to all the Real Estate Market activities , Developments, Permits, and the like . To utilize Research Techniques that are at par with international standards. And Make the necessary statistical analysis of these information to determine the REAL ESTATE Price index with out Bias or “manipulation” .
In Conclusion, I wish to encourage my fellow Real Estate Consultants to take seriously their Advance Continuous Education in higher levels of say, Economics, Finance, and use of research in their Consultancy and Advisory services.