Many people believe that in 2012, the Philippines saw a big leap in terms of improvement based on the increase of the country’s GDP.
In fact, in the year 2012, the country’s GDP increased by 7.4%, and according to the careful study and research by experts, the big factor for its increase is the very good performance of real estate, comprising 18.9% of the total whole.
And another fact is that the subsectors that include real estate are renting and business activities, and ownership of dwellings, which have been achieved by the growing field of Business Process Outsourcing industry as well as the help of Overseas Filipino workers.
Based on the numbers, more and more OFWs who send their remittances take up a big chunk of these residential units and condominium units that are currently on sale.
This is why the forecast for 2013 is very promising. More and more real estate investors see the great potential of offering units because the demand is high. No matter if these are housing units or condominium units, to working class heroes, middle class families, and most especially to families of OFWs, they are all very good investment.
Simply put, 2013 will be a positive year for the Philippine real estate market. Do you want to know why such an affirmative declaration? For starters, the performance of our country has not only gotten several foreign companies’ attention and international organizations’ notice, but it has certainly garnered admiration and praise.
For one, the Philippines was named as the ONLY country to be given an upgraded forecast by the International Monetary fund (IMF) for 2012.
In fact, because of the enormously improved performance of the Philippines for 2012, our outstanding foreign debt has been reduced to US$1.5 billion dollars. For whatever its worth, it has been years and years since we have accomplished such feat and only in 2012 has our country seen not just improvements in our foreign affairs, but locally as well.
The Other Side of the Coin
On the other hand, there is also a forecast of having a real estate ‘bubble’.
To fully understand this, you have to comprehend and grasp the current picture and scenario of housing that are being sold that cover the five segments of residential housing: low-cost housing, mid-level housing, socialized housing, economic housing, and high-end housing.
The possibility of having an over-supply is seen for the high-end housing, three to five years down the road, because of the type of buyers who purchase these.
Currently the bigger cities in the Philippines like Manila and Makati are seeing the bulk of their housing to be selling like ‘hotcakes’, but the other cities that are following closely behind like Cebu and Davao may also be building these condominium towers and offering housing investment.
However, as long as the demand is still high, with a steady input of possible buyers inquiring and looking at different alternatives to being able to own one, then the outlook for real estate for the Philippines for 2013 is still positive and definitely optimistic.