CBRE sees increase in luxury property dev’t in tourist areas

MANILA, Philippines - Investments in luxury property developments are expected to rise in Boracay, Cebu and Palawan as the government continues its promotion of these areas as tourist destinations, real estate advisory firm CBRE Philippines said.

CBRE Philippines chairman and founder Rick Santos said in a press briefing yesterday that as the government’s tourism promotions continue and foreign visitor arrivals increase, more investments in luxury developments are expected to be made in tourist destinations of the country.

“With tourism efforts now into full swing, a captive international market for destination properties in Cebu and Boracay will revitalize investment and luxury developments in these areas,” he said.

Liz Silvestre, CBRE Philippines associate director for investments and capital markets said in the same event they are seeing more investments in luxury property developments this year in Cebu, Boracay, as well as Palawan, as these areas are among the top tourists’ picks in the country.

She said many tourists are visiting these three locations not only because of the government’s continuous efforts to promote tourism but also because of special attention from overseas.

With more foreign travelers to these areas, opportunities are available for luxury property developers.

“The direction of investors is looking in to high-end developments in these areas,” Silvestre said.

She said there are property developers indicating interest to invest in these areas, with one even planning to bring a five-star hotel this year.

She declined to name the firms, but cited one recent luxury development in Boracay which is Aqua Boracay by Yoo.

Aqua Boracay is the first branded five-star class resort residence on the Island of Boracay.

Master-planned in a 16,000 square-meter property right across a pristine beachfront, Aqua Boracay comprises a four-story, low-density and low-rise building with 134 one-and two-bedroom luxury apartments, offering residences that are spacious, modern and have a sophisticated design.

Silvestre said that while there is interest to start more luxury developments in the country’s tourist destinations, the government would have to continue investments in necessary infrastructure to attract more tourists to these areas.

“We are seeing plans for refurbishments of airports, but we think the government will also have to start investing in the upgrade of ports,” she said.

Data from the Department of Tourism showed that arrivals to the country reached 4.273 million last year, up 9.07 percent from 2011.

The Philippines aims to attract 10 million visitors by 2016.