Philippines Real Estate Report

Published 28 November 2014

  • 74 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
Philippines Real Estate Report

BMI View: Ongoing improvements in the Philippine's economy have been supported by the rapidly expanding business pro cess outsourcing (BPO) industry, which is helping boost demand for commercial real estate across the country. We see particular opportunities for investors in the office market due to the strength of the BPO industry, as well as retail developers looking to benefit from the country's increasing levels of private consumption.

Despite remaining underdeveloped when compared to Thailand and Malaysia, the Philippines' commercial real estate industry has achieved continued growth thanks largely to business process outsourcing (BPO) which is fuelling a rapid expansion in the services sector. The success of this industry will significantly influence the overall strength of the office real estate segment, as well as indirectly on the retail segment.

We are expecting to see Real GDP growth of 5.9% in 2015 on the back of significant levels of inward remittances and this will bode especially well for the retail sector. Cash transfers from workers abroad rose by 5.8% year-on-year (y-o-y) to USD11.4bn in H114. Remittances have shown to have a huge impact on domestic spending power and this is quickly transforming the purchasing habits of the young and large population. These changes in the retail environment are presenting new opportunities for willing investors, not only in Metro Manila but in second-tier cities.

The industrial segment has shown weaker performance when compared to the office and retail segments; however, we expect to see growing industrial production in the medium term, which should boost demand for industrial space. With adequate support from both domestic and international investment, the Philippines has the potential to turn into a regional export hub, which will further fuel expansion in the segment.

A relatively stable monetary policy, increasing tourist numbers as well as stronger economic ties within the ASEAN are also helping...

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Industry Forecast
13
Office
15
Table: Forecast Office Rents, 2015-2016 (USD per square metre per month)
16
Table: Office Net Yields, 2011-2018 (%)
16
Retail
17
Table: Forecast Retail Rents, 2015-2016 (USD per sq m per month)
17
Table: Retail Net Yields, 2011-2018 (%)
18
Industrial
18
Table: Forecast Industrial Rents, 2015-2016 (USD per sq m per month)
18
Table: Industrial Net Yields, 2011-2018 (%)
19
Construction & Infrastructure Forecast Scenario
20
Table: Construction And Infrastructure Industry Data (Philippines 2012-2017)
20
Table: Construction And Infrastructure Industry Data (Philippines 2018-2023)
21
Typhoon Yolanda Still A Factor
24
2015 Boost Will Not Last
25
Macroeconomic Forecasts
28
Economic Analysis
28
Table: Economic Activity (Philippines 2009-2018)
31
Industry Risk Reward Ratings
32
Asia - Risk/Reward Index
32
Table: Asia - Real Estate Risk/Reward Index
32
Philippines - Risk/Reward Ratings
33
Rewards
33
Risks
33
Market Overview
35
Office
40
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
41
Table: Historical Net Yields, 2013-2014 (%)
41
Table: Terms Of Rental Contract/Leases, H214
42
Retail
43
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
45
Table: Historical Net Yields, 2013-2014 (%)
45
Table: Terms Of Rental Contract/Leases, H214
46
Industrial
47
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
49
Table: Historical Net Yields, 2013-2014 (%)
49
Table: Terms Of Rental Contract/Leases, H214
50
Competitive Landscape
51
Office
52
Retail
53
Industrial
53
Company Profile
54
Ayala Land
54
Filinvest Land Incorporated
58
First Balfour Inc
60
Robinsons Land Corporation
62
Demographic Forecast
65
Table: Population Headline Indicators (Philippines 1990-2025)
66
Table: Key Population Ratios (Philippines 1990-2025)
66
Table: Urban/Rural Population & Life Expectancy (Philippines 1990-2025)
67
Table: Population By Age Group (Philippines 1990-2025)
67
Table: Population By Age Group % (Philippines 1990-2025)
68
Methodology
70
Industry Forecast Methodology
70
Sources
71
Risk/Reward Index Methodology
72
Table: Real Estate Risk/Reward Index Indicators
73
Table: Weighting Of Indicators
74

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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