Real estate sector unveils 4-point wish list for new administration

MANILA, Philippines - The real estate industry has unveiled a four-point wish list for the new administration, including a more proactive move to support the Real Estate Investment Trust (REIT) because this can bring in an additional $1 billion worth of investments in the industry.

“We are asking the new administration to support the REIT Law,” Rick Santos, chairman of international property firm CB Richard Ellis Philippines, told The STAR in an interview.

The other three items in the wish list are: Support for the business process outsourcing (BPO) industry; ease of access to property by foreign investors; and infrastructure support.

As an added measure, Santos said the government can institute reforms in the judiciary. On the positive side, Santos said security risks are not a concern anymore for investors. “This is not stopping the investors from coming here. It is not a major concern.”

For the BPO, Santos said there is a need to continue making the country an attractive destination because the BPO industry is the leading market for office spaces.

On foreign ownership, Santos said there would be a need to amend the constitution in order to make it easier for non Filipinos to buy land in the country. “I understand that constitutional amendments are needed and this may not come in the near future.”

However, he said the government can focus on constructing infrastructure that will make the Philippines a viable investment destination. For instance, he said airports can be refurbished and the railway system can be improved.

Meanwhile, most big players in the real estate industry are seriously entertaining the possibility of raising capital through REIT. By the third or fourth quarter of the year, Santos estimated that a total of $1 billion will be infused.

“The REIT Law is the most positive thing that happened to the industry because it created transparency and liquidity in the market,” Santos explained.