RP is hottest real estate market in SEA – CB Richard Ellis

The Philippines is the hottest real estate market in Southeast Asia, a ranking official of  international commercial real estate service provider CB Richard Ellis (CBRE) said yesterday.

“Investment opportunities in tourism, infrastructure, mining, and real estate remain high in the Philippines,” CBRE Philippines general manager Trent Frankum said in a speech at the International Property Expo in Hong Kong.

“Foreign investors are looking at the positive effects of the stable Philippine peso, increasing tourist arrivals, the BPO boom, and the positive effect of overseas Filipino worker (OFW) dollar remittances into the country,” he added

The Smart Investment and International Property Expo, one of the largest and longest-running real estate expositions in Asia, showcases global real estate market opportunities and features property experts and investors from global companies headquartered in Asia, Australia, and the UK.

According to Frankum, investing in the Philippine real estate market is a smart move given the country’s strong tourism program. Likewise, it is one of the best outsourcing and offshoring (O&O) destinations.

For tourism, Frankum said they are projecting 3.4 million foreign arrivals this year. This would generate almost $6 billion in revenues.

He said foreign visitors will come mainly from Russia, Middle East, China, and Korea

Last year, tourist arrivals broke the two-million mark for the first time since 2004, with arrivals rising to 3.091 million.

Hotel room occupancy rates rose to 73.06 percent in 2007, from 71.95 percent in 2006. “New hotel and resort developments are currently in strategic business locations such as Makati City, Fort Bonifacio, and the Bay Area as well as top tourist destinations such as Cebu and Boracay, further enhancing industry prospects,” he noted.

New development projects include the $153 million Kingdom Hotel, a combined hotel and residential condominium that will rise in Makati City. “We expect 18,143 units to be provided from 28 upcoming residential condominiums in Makati that are targeted for completion between 2008 and 2013. Likewise, in Fort Bonifacio, 11,652 units are expected to come on the market from 33 residential condominiums being constructed from 2008 to 2012.”

Meanwhile, Frankum said major multinational BPO operators are currently expanding their presence in the Philippines

“Major investors and businesses are looking at the Philippines because it is one of the largest English-speaking nations in the world and has 33.5 million Filipinos in the workforce,” Frankum said.

“Offshoring and outsourcing will continue to drive demand for real estate, particularly in the office space market,” he added.

CBRE is a global leader in commercial real estate services specializing in investment sales, commercial and industrial leasing, asset management, property management, project management, facilities management, and research and consultancy.