Investors prefer huge real estate developers

CEBU, Philippines - Amid the growing real estate sector, local property developers are also facing the challenge of resistance among investors.

These investors have the tendency to favor the more well-known industry players over the local ones.

"That's what I noticed and feel nganaay resistance basta local ang developers," said Rafaelito Barino, chairman of the board of Duros Development Corporation, a local developer.

And this idea might be tough for them, considering that the competition is getting tighter in the property market, Engineer Barino said in an interview with The FREEMAN.

He said that what usually keeps prospective investors away from investing is the doubt that a certain property development will push through on the deadline.

This supposed belief among investors must then pushed local developers to consider fast tracking their commercial and residential projects to keep the confidence of the buyers, he noted.

The pace of work though depends on the needs of property investors who may be in the working class, foreign retirees, Overseas Filipino Workers and local individuals.

Real estate bubble?

While it is a fact that commercial and residential developments are currently being done in many areas in Cebu, some people in the industry indicate this to a possible real estate bubble in the future. 

Bubble in the real estate is the event when property values are quickly increasing until they surpass other aspects of the economy and then followed by a turn down in the property value.

The bubble might happen but it will take a long time, Barino said, noting that investing in property has still become a practical decision nowadays. He emphasized the industry is contributing so much to the economic growth of Cebu and spurring private consumption.

For example, condominium owners can still gain return of investment by leasing out their properties to potential tenants. He said investors of Duros' new condo project The Padgett Place Cebu are divided as to their purposes: there are those who personally use their units while others opt to rent it out as way of financial investment.

Meanwhile, DDC is also currently constructing the IEC Pavilion which will serve as venue for the 51st International Eucharistic Congress at the Seminaryo Mayor de San Carlos in Mabolo, Cebu City. The Cebu-based Duros Group of Companies is also into food, power, and trade businesses.   (FREEMAN)