Political System
The Philippines is a peaceful politically stable country with free democratic elections.
Economy
• A surplus in the Balance of Payments.
• Low debt ratios.
• Rising disposable income and consumer expenditure.
• High remittances from abroad.
• The Philippines economy has grown at a rate of 4.4% in 2008 and expected to grow at a rate of 4.0% in 2009 (Economist Intelligence Unit).
• High government expenditure and large remittances from abroad are projected to drive the Philippine economy.
• Stable currency.
• Higher production in the agriculture and manufacturing sectors.
• A surplus in the Balance of Payments.
• Low debt ratios.
• Rising disposable income and consumer expenditure.
• High remittances from abroad.
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 due to significant reforms in fiscal and banking sectors, build-up of reserves, low debt ratios, an increase in government spending, resilient external sector, a surplus in the Balance of Payment, large remittances, channeling of remittances into investments especially housing, resilient domestic financial markets, adequately capitalised banking system, low exposure into investments especially to sub-prime related distressed credit products and increasing saving ratios.
Tourism
• Countless glorious sandy beaches on many of the country’s islands.
• Charming villages.
• A large number of attractions.
• Modern resorts and developments.
• Excellent recreational facilities, attractions and sporting activities.
• Outstanding locations for scuba diving with over 800 types of beautiful and colorful coral reefs and spectacular underwater-world.
• Many delightful festivals.
• Very friendly fun-loving population.
• A wide range of stunning and interesting landscapes.
• Beautiful architecture.
• Rich culture and delicious food.
• Low cost of living.
• Thriving tourism with over 3.5 million arrivals per year and receipts of about $5 Billion.
• English is an official language and is widely spoken in the country.
• Health tourism with world class medical professionals and relatively lower cost of medical services.
The Philippines Real Estate Market
Investment potential for overseas property buyers in the Philippines is enormous, with the property outlook remaining very healthy as strong demand is expected to build up even further despite the global economic slowdown as the property market is exhibiting a sustained and prolonged growth.
• Political stability will ensure that the market for property in the Philippines will continue to grow.
• Sustainable economic growth. The Philippine economy is well positioned to weather the global economic slowdown whose effect on the property market is likely to be subdued.
• About 30% of remittances are now being invested in the property sector.
• Good accessibility and low cost flights.
• Thriving tourism with the number of tourist increasing rapidly further driving demand for real estate.
• A wide and distinctive range of luxurious developments in outstanding locations.
• Excellent infrastructure with good transportation and telecommunication networks and outstanding facilities.
• Excellent rental yields with warm weather and little temperature variation creating all year round demand.
• There are no direct restrictions on foreign ownership of flats or condominiums.
• Property prices in the Philippines are still really low compared to neighbouring countries which will undoubtedly lead to a substantial capital appreciation to fill this price gap.
• Strong capital appreciation with prices appreciating between 15 and 20%.
• High demand from an expanding and affluent expatriate population.
• Very strong demand from 11 million Filipinos living overseas who aspire to own their own property in their home country.
• Tight property supply not catching up with demand.
• High rental yields as the buy-to-rent market is growing in the Philippines, fuelled by an increasing number of tourists and rising incomes of a growing young, educated professional class.
• Favourable demographics and population growth.
• Fiscal and banking reforms are strongly supporting the Philippines real estate market.
Strong growth in the property market is set to continue in spite of the global slowdown as current circumstances have created an ideal environment for a prolonged and sustainable capital appreciation in the real estate market because of significant demand and still reasonable real estate prices.
The islands of Boracay and Mactan present excellent investment opportunities because of their accessibility, beautiful beaches, stunning landscape, luxurious resorts and a wide a range of facilities and activities.