Real estate boom to continue in ’12

The real estate boom that the country has been experiencing these past few years is expected to continue through 2012, according to real estate advisory firm CB Richard Ellis Philippines.

The company said the surge in property transactions over the years was due to the expansion of the business process outsourcing sector.

CBRE Philippines chairman Rick Santos said the BPO sector would continue to fuel the growth of real estate, not only in the office space segment, but also in the residential market.

“All eyes will be towards the Philippines as the desirable ‘live, play, and work environment’ this side of the globe,” Santos said during a recent briefing.

While developers would continue to roll out new leasable office spaces, Santos related that next year would also see the rise of many more condominium developments.

According to CBRE Philippines asset services group executive director Lui Matti, Filipinos are increasingly adapting to condominium living, prompting developers to undertake more vertical developments.

This year, out of the 37,441 residential units built, 34,775 units had already been taken up, Matti said.

Next year, 25,703 condominium units are expected to be constructed, with take-up seen reaching 20,107 units, he added.

Santos said the middle-income condominiums in strategic locations in Metro Manila would continue to be a viable option for developers.

Supply of luxury condominiums, on the other hand, will continue to be limited, he added.

In the retail sector, CBRE Philippines executive director for research and consultancy Vic Asuncion said 2012, like this year, would see the rise of more supermarkets, particularly major players such as SM and Puregold.

Neighborhood malls and hypermalls will be the trend in 2012, driven by an expected increase in mixed-used development, Santos said.

In the leisure and tourism sector, boutique hotel development will expand next year to cater to a broader domestic market.

Asuncion also said that for foreign tourists, the Philippine Gaming Corp.’s Entertainment City would just be the first step toward the Philippines’ bid to become “the next leisure tourism hub.”

“Casinos and gaming developments are getting a lot of interest from investors,” Asuncion explained.