Philippines Real Estate Report

Published 10 August 2015

  • 65 pages
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$1,295.00
Philippines Real Estate Report

BMI View: : Developments in the Business Processing Industry (BPO) and contributions from Overseas Filipino Workers (OFW) remittances will maintain the view of a strong peripheral economy in the Philippines, ensuring the commercial real esta te industry remains resilient, with particular opportunities looking to arise in the retail and office sub-sectors, despite laggards from weakening economic dynamics.

After nominal growth of 20% in 2012, the BPO industry of the Philippines is estimated to gross revenues of upwards to USD25bn by 2016. According to these figures, the Philippines' BPO industry will account for approximately 10% of the nation's GDP. Surpassing India as the largest BPO industry in the world (as of 2010), considered as location of choice for subsequent investment owing to the attraction of a proficient English speaking, highly educated, cost-effective labour pool. Call centers have emerged as plain providers of email response and managing services, and now constitutes a substantial source of employment in the country. We expect both industries to continue to flourish in the wake of the surprise economic slowdown witnessed in Q115 as investor sentiment remains strong, and will continue to do so over out forecasted 2015 to 2019 period.

Cebu city is the hub of the BPO industry, and is witnessing increasing investment activity as a result, with a steady pipeline ahead. Manila, the capital, is highly recognized as the dominant retail real estate sector location; seeing to a rise in non-essential revenues and promoting a healthy growth in the NCP region economy. Makati city, the financial hub of the country, looks to dwindle in terms of developments and potential investments regarding all areas of commercial real estate attributed to the factor of the city containing the lowest vacancies across all three sub-sectors we cover, a trend that is influencing high demand but not spurring construction activity, even forcing some corporations to seek real...

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Office Industry Forecast
15
Table: Office Rental Rates
18
Table: Office Yields
19
Retail Industry Forecast
21
Table: Retail Rental Rates
24
Table: Retail Yields
25
Industrial Industry Forecast
26
Table: Industrial Rental Rates
29
Table: Industrial Yields
30
Residential/Non-Residential Building - Outlook And Overview
31
Table: Residential and Non-Residential Building Industry Data (Philippines 2013-2018)
31
Table: Residential and Non-Residential Building Industry Data (Philippines 2019-2024)
32
Table: Major Projects Table - Residential/Non-Residential Construction And Social Infrastructure
38
Macroeconomic Forecasts
40
Economic Analysis
40
Table: Economic Activity (Philippines 2010-2019)
44
Industry Risk Reward Ratings
45
Table: Asia Real Estate Risk/Reward Index
45
Market Overview
47
Competitive Landscape
52
Property Developers
52
Property Managers
54
Demographic Forecast
56
Table: Population Headline Indicators (Philippines 1990-2025)
57
Table: Key Population Ratios (Philippines 1990-2025)
57
Table: Urban/Rural Population & Life Expectancy (Philippines 1990-2025)
58
Table: Population By Age Group (Philippines 1990-2025)
58
Table: Population By Age Group % (Philippines 1990-2025)
59
Methodology
61
Industry Forecast Methodology
61
Sources
62
Risk/Reward Index Methodology
63
Table: Real Estate Risk/Reward Index Indicators
64
Table: Weighting Of Indicators
65

The Philippines Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Philippines Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Philippines.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in the Philippine real estate market.
  • Target business opportunities and risks in Philippines through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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