In its Midyear Report http://kmcmaggroup.com/research/>, real estate services agency
While the country's current progress is encouraging, KMC MAG Group Managing DirectorMichael McCullough http://kmcmaggroup.com/about-us/our-people/leadership-team/michael-mccullough/> believes that more needs to be done in order to keep investors interested.
"Compared to other countries in
In the residential market, investors can expect a lot of good news. First-time homeowners will have a lot of options to choose from, as the residential supply is expected to peak in the coming year. Condominium production has also shifted to focus on the middle-income market, which will make it easier for more Filipinos to invest in their own units.
"The middle-income and low-cost demand in Metro Manila is expected to keep the market demand buoyant and occupancy rates high, even as we see growth slowing down in the high-end segments," says McCullough. "We have additional supply coming in, and while that puts pressure on the market, the backlog of housing will offset that and keep the market sentiment positive." (seeFigure 1 http://kmcmaggroup.com/media/403532/key_residential_figures_-_metro_manila_real_estate_midyear_report_2014.png>)
A growing middle-class is also powering the retail market (see Figure 2 http://kmcmaggroup.com/media/403537/key_retail_figures_-_metro_manila_real_estate_midyear_report_2014.png>), inspiring retail developers to pursue aggressive expansion plans.
IT-BPO/KPO Industry & SMEs Continue to Drive Office Demand
Meanwhile, in the office market, the information technology-business process outsourcing (IT-BPO) industry continues to drive growth in the leasing market. The leasing demand pushed the rental growth to 7.9% year-on-year (seeFigure 3 http://kmcmaggroup.com/media/403527/key_office_figures_-_metro_manila_real_estate_midyear_report_2014.png>), and net take-up was recorded at 100,000 square meters in the major central business districts. The take-up is expected to reach 280,000 square meters this year once the market absorbs the majority of the new supply.
Business process outsourcing and knowledge process outsourcing operations, along with small and medium enterprises, drove the growth in the serviced office market (seeFigure 4 http://kmcmaggroup.com/media/403542/key_serviced_office_figures_-_metro_manila_real_estate_midyear_report_2014.png>), owing to the low-risk, low-capital nature of the space. The concept of serviced offices has also proven to be successful in areas outside Metro Manila, such as
"Serviced offices are a very attractive concept because it allows new enterprises to test the waters without risking too much," notes McCullough. "Provinces such as
Lastly, the hotel market is also getting a boost in order to keep up with the growth in arrivals. There is approximately 9,500 rooms in the pipeline, with majority of the new supply located in the Entertainment City in
"We believe that there are a lot of opportunities in the real estate sector, and that the growth it is experiencing is sustainable," says McCullough. "What
For more information about this release, please contact:
Yves LuethiVP for Marketing and Business Development, KMC MAG GroupTel: +632-403-5519 ext. 126Email: firstname.lastname@example.org
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
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