Investing in The Philippines Overview and Statistics

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The Philippines is a welcoming, stunning and culturally rich country which offers extremely good value for money to travelers.

Today the Philippines is a politically stable country with a growing economy, a thriving tourism industry and excellent opportunities for foreign property investors.

The Philippine economy is well positioned to weather the global economic slowdown whose effect on the property market is likely to be subdued because the economy is expected to remain resilient while the property market is exhibiting prolonged growth as the current circumstances have created an ideal environment for a sustainable capital appreciation because of significant demand and still reasonable real estate prices.

Strong economy, warm all year round tropical climate, stunning landscapes, beautiful beaches and numerous recreational facilities make the Philippines a most desirable destination for both tourism and investment.

The Philippines is an archipelago that is situated in Southeast Asia in the Western Pacific, east of Vietnam and north east of Malaysia between the Philippine Sea and the South China Sea. It has over 7,000 islands with most of the population living on just 11 of them. The three main islands of Luzon, Visayas and Mindanao are mountainous as well as forested.

The Philippines occupies about 300,000 square kilometers (115,800 Sq miles), and the largest city is the capital, Manila.

The Philippines has tropical rainforest climate with high temperatures and high humidity with warm, shallow waters around the islands, with a lot of beautiful corals and the coral reefs.

The Philippine economy is well positioned to weather the global economic slowdown whose effect on the property market is likely to be subdued because the economy is expected to remain resilient while the property market is exhibiting prolonged growth as the current circumstances have created an ideal environment for a sustainable capital appreciation because of significant demand and still reasonable real estate prices.

Political Stability in the Philippines
The Philippines is a peaceful, politically stable country and Filipinos are peaceful freedom-loving people. Despite minor isolated incidents, free democratic elections and improved social living conditions have greatly contributed to the political stability of the country. The Philippines has a representative democracy modeled on the U.S. system and the country has a free press and media with a large number of English national newspapers, national TV stations, hundreds of cable TV stations, and over 2,000 radio stations.

The Philippines Key Statistics

Population: 96.061 million

Population growth rate: 1.991%

Language: Filipino (official; based on Tagalog) and English (official); eight major dialects – Tagalog, Cebuano, Ilocano, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinan.

Government type: Republic

Capital: Manila

Time zone: UTC +8

GDP: $300.1 billion

GDP growth rate: 4..4%

GDP per capita: $3,200

Unemployment rate: 7.3%

Reserves of foreign exchange and gold: $33.75 billion

Investment (gross fixed): 14.8% of GDP

Industrial production growth rate: 7.1%

Currency: 1 US$= 47.0 Peso (or Piso).

Airports with paved runways: 171

Ports: 1500

Produce: Agriculture – sugarcane, coconuts, rice, corn, bananas, cassavas, pineapples, mangoes; pork, eggs, beef; fish.

Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing.

Property prices are still much lower than in similar locations, a fact that’s drawing an increasing number of investors looking to buy undervalued real estate with outstanding growth potential.

Filipinos working abroad fueling a boom in the property market into ensure their home, slamming and homes, their the future.

According to industry experts, property prices have improved significantly Since the global financial crisis in 2009 with investment of 9 Million Filipinos live and work abroad is an important factor.

Chief Estate Brokers Association of the Philippines Real Emily Duterte said, “workers in overseas properties are moving the market now. Sales and when a demand to rise, the prices. ”

According to the head of research at Jones Lang LaSalle Philippines Claro Cordero, To achieve properties for sale throughout the country PHP300 billion (6.9 billion dollars) by the end of 2010 to PHP100 dollars each in 2009 and 2008.

As shown on ABS-CBN. Com, Filipino workers abroad account for 10 percent Percent of the population of the Philippines. Although they Reputation for work as the lowest paid workers, such as construction Workers, maids, cleaning ladies and they are increasingly on the higher more lucrative sectors such as medicine, technology and media.

In 2009 they managed to send home $ 17,300,000,000 produce over 10 Percent of GDP, according to the Government.

Houses around PHP2 million (45,000 dollars) in Manila are usually priced choices for workers abroad, according to the association Duterte broker.

However, the living abroad began to change these preferences of buyers.

Manuel Serrano, president of the Chamber of Real Estate and Construction Association says that workers overseas, the housing market reignited Philippines. He said: “At first they were more interested in House and property, but in the last two years, the tempo changed. The Demand for condos is now. ”

Reports have been done and the results have been that generally the Philippines provides the highest rental yields for real estate investments across the Asia markets, higher yields than popular tourist destinations such as Thailand.

In areas such as Makati, the financial district of Manila luxury condominiums in this area are providing investors with very high rental returns.

Again condos in Makati have also been recording high occupancy rates in the first quarter of 2010. There was a slight decline in vacancy at 6% from 7% in the final quater of 2009 due to the lack of new developments and a strong demand from new working professionals in the area and expartiates relocating to Manila from overseas.

There are many new residential real estate developments being built now in Manila and Makati which is set to push vacancy levels up to about 9% in the next 18 months.

The start of 2010 we saw rentals of luxury 3 bedroom apartments of 250 sqm in the Manila, Makati Central Business District renting for P540/sqm. Demand for smaller apartments in the Makati area is less, however the rental per SQM is higher.

Unfortunately Foreigners are unable to purchase land in the Philippines, some do illegally in the countryside, However in areas such as Manila and Makati foreigners can only invest in residential real estate.

Ways in which foreigners usually own estate in the philippines is by either having a Filipino spouse or owning a Philippine corporation or the most common which is simply owning a property without land such as a apartments / condominium.

One big driver of the Philippines residential real estate market is that there are over 11 million Filipinos working overseas in counties such as USA and UK who send billions of dollars back to the Philippines, many of these overseas workers will eventually return to retire to the Philippines, they are investing and purchasing property now, taking advantage of the a benefits offered by the banking system.

Although the Philippines residential real estate market is attractive and is a cost-effective investment strategy, the capital value of luxury apartments condominiums are probablly not going to increase significantly as they have in cities such as Hong Kong and Tokyo, as there is alot of new supply becoming available and the buyer sentiment will cause demand to fall. Cebu / Manila & Philippines residential Real Estate markets have started to show big improvements since the financial crisis and the fall in real estate market prices in 2009.

We are going to outline some key factors to help you select your real estate investment in the Philippines / Cebu / Manila real estate market.

Reports have been done and the results have been that generally the Philippines provides the highest rental yields for real estate investments across the Asia markets, higher yields than popular tourist destinations such as Thailand.

In areas such as Makati, the financial district of Cebu & Manila luxury condominiums in this area are providing investors with very high rental returns.

Again condos in Makati have also been recording high occupancy rates in the first quarter of 2010. There was a slight decline in vacancy at 6% from 7% in the final quater of 2009 due to the lack of new developments and a strong demand from new working professionals in the area and expartiates relocating to Cebu or Manila from overseas.

There are many new residential real estate developments being built now in Cebu and Manila and Makati which is set to push vacancy levels up to about 9% in the next 18 months.

The start of 2010 we saw rentals of luxury 3 bedroom apartments of 250 sqm in the Cebu, Manila, Makati Central Business District renting for P540/sqm. Demand for smaller apartments in the Makati area is less, however the rental per SQM is higher.

Unfortunately Foreigners are unable to purchase land in the Philippines, some do illegally in the countryside, However in areas such as Cebu and Manila and Makati foreigners can only invest in residential real estate.

Ways in which foreigners usually own estate in the philippines is by either having a Filipino spouse or owning a Philippine corporation or the most common which is simply owning a property without land such as a apartments / condominium.

One big driver of the Philippines residential real estate market is that there are over 11 million Filipinos working overseas in counties such as USA and UK who send billions of dollars back to the Philippines, many of these overseas workers will eventually return to retire to the Philippines, they are investing and purchasing property now, taking advantage of the a benefits offered by the banking system.

Although the Philippines residential real estate market is attractive and is a cost-effective investment strategy, the capital value of luxury apartments condominiums are probablly not going to increase significantly as they have in cities such as Hong Kong and Tokyo, as there is alot of new supply becoming available and the buyer sentiment will cause demand to fall.

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