MANILA, Philippines - The local property sector can take advantage of the growing demand for offshoring from recovering economies, commercial property and real estate services adviser CB Richard Ellis (CBRE) said.
“As the Philippines remains to be at the forefront of offshoring destinations with cheaper but good quality services and talent, it can further take advantage of this demand from recovering economies,” said CBRE chairman Rick Santos.
The growth in the offshoring sector, according to the firm, contributes to growth in the bricks and mortar businesses which paves the way for more buildings – developments in both the residential and tourism sectors sprouting up because of increased employment rates.
CBRE made its forecast on the possible state of the Philippine property market in the coming year, saying that in spite of the volatile situation expected, the country still has much to gain – with minimal risk in the medium to long term – as long as cards are played right.
The firm said that the country’s strength remains to be in the office sector, with conti-nued demand in the BPO, offshoring, and outsourcing shared sectors, which have caused traditional businesses to expand.
Economies such as the US and Europe will continue to rely on cost-effective destinations for back-end processes.
Meanwhile, the residential sector remains firm as banks remain liquid and continue to lend. Demand also continues from OFWs and from international and local banks.
Likewise, highly competitive development firms are expected to continue to do well in 2010 including companies such as: Ayala, SM, Robinson’s, Megaworld, Greenfield, Filinvest, Daichi, The Kwok Group, JTKC, Rockwell, Vicsal of the Gaisanos, Ortigas, Anchor Land, Ascendas, DMCI homes, Eton and Vistaland.
These companies have shown themselves capable of competing regionally and internationally across all property segments with continuous production of cutting-edge developments, CBRE said.