RP real estate industry robust amidst global crisis

The continuing inflow of overseas Filipino workers (OFW) remittances as an important source of income and capital, will have a great impact on the real estate industry and the national economy.

This was underscored by Pedro Tario and Florentino Dulalia Jr., respectively chairman and president of the CREBA Research Institute (CRI), a subsidiary of the Chamber of Real Estate and Builders Associations Inc., during a recent CRI briefing.

Tario and Dulalia cited a Bangko Sentral ng Pilipinas (BSP) report that total OFW remittances reached US$17.3 billion by September this year, posting a 17 percent increase from last year’s record, and will likely hit US$15. 95 billion by December, 10 percent higher than last year’s figure.

They said that the amounts might be still be bigger if funds channeled through the unregulated channels were accounted for. BSP estimated that funds remitted to the banks are understated by something like five percent. Moreover, some 25 percent of OFW earnings are not remitted to the country but saved for future needs and investments or until foreign exchange rates stabilize.

Despite the dim projections for the 2009 first quarter for other industrial sectors, Tario and Dulalia said the real estate industry has remained optimistic. While other sectors have experienced slowdowns, the business process outsourcing (BPO) and the real estate sectors have remained bullish. The real estate industry posted a 10.60 percent growth rate for the 2008 first semester, 3.94 percent higher than last year’s first semester record.