Recognized as one of the most powerful markets in the Asian properties sector, the Philippine real estate industry is driven by a healthy economic growth that is fueled by a robust influx of direct foreign investments. Investor confidence in the Philippine properties sector can be directly attributed to reforms initiated and implemented by the country’s government. In addition, the Philippines has been able to achieve a high GDP rate in spite of global recession and one of the reasons behind this is an active construction industry and high amount of OFW remittances. Apart from that, good credit ratings achievement and political stability has also helped to create a viable economic environment. As a result, investor and buyer confidence is at its peak, and demand for office space in major business districts in Metro Manila, the country’s national capital region, is on the rise, along with demand for residential space and condominiums. Majority of the buyers in the Philippine real estate industry also recognize that investment in real estate is an excellent means of building up assets and wealth and that a keen eye for choosing the right location of properties to put an investment in determines the viability of such an investment. For good investment opportunities in Manila real estate, the following business districts are seen by many as a good pick:
The Makati Central Business District serves as the financial center of the Philippines and plays host to several multinational corporations. As the oldest business district in the country, Makati CBD is home to the highest percentage of companies looking to have an office space in this prestigious location. Because of the high density of corporations looking to lease office space in this area, premium office space yield range from 7.5% to 11%, respectively.
The Ortigas Central Business District is known to have the lowest vacancy rate for premium office space, which runs at 3.6%. Compared to Makati, Ortigas offers a better rate which can get as much as 30 – 35% lower. The same is true for residential space that are available in the area. Since Ortigas is in the middle of Metro Manila, it has the added advantage of being more accessible to employees of corporations holding office in the area. The facilities available in this location is the same as those that can be found in Makati, making it a more viable option for those who are looking for a top notch business location.
Also known as Global City, Fort Bonifacio currently has the highest rate for both price and yields for office and residential space, more particularly for condominiums, with prime yields running between 6.0% to 8.0%. This area has an increasingly high level of real estate activities, which indicates that both investors and buyers are willing to locate in the area despite the higher costs.
Entertainment City Manila, officially known as PAGCOR Bagong Nayong Filipino is an ongoing development within an 8 square kilometer strip in the Manila Bay Reclamation area. Apart from the major companies that have tied up with the government to develop the area, various investors and developers have ventured into real estate business in and around Entertainment City. Apart from catering to local demands for residential living space, the current real estate activities in the area is also in anticipation of the projected tourism boom after the Entertainment City has been completed.
Alabang in Muntinlupa City is known as one of Metro Manila’s foremost business and financial districts. The area’s development as a business center traces its way back in 1970’s when a renowned real estate developer and business conglomerate in the Philippines started to develop a vast section in the locality as a premiere residential hub, developing along with it a business park, thus providing an excellent incentive for businessmen to relocate and do business in the area. Other developers has since then took notice of the potentials of Alabang as an excellent location for investment in top industries. As of date major players in the BPO industry, real estate industry, manufacturing industry, as well as many other sectors have business interests in the locality.