CREBA head upbeat on property growth

Even as most of America, Europe and some Asian countries are uneasy about the effects of the current global financial crisis in their respective economies, the Philippines real property sector is unfazed and even more optimistic as its target overseas Filipino workers market is mostly based in the Middle East, which is not affected by the global crisis.

Chamber of Real Estate Brokers Association (CREBA) president Reghis Romero II, CEO of RII Builders Inc., said that there are yet no clear indications that the crisis would affect the sector as the target market, OFWs, are mostly based in the Middle East and not in the US, Europe and some Asian capitals like Singapore.

In fact, he said, we expect the growth this year at 5 percent and maybe even more next year owing also to the expected expansion of the business process outsourcing (BPO) sector with the relocation of more BPO companies from the US and Europe to the Philippines. BPO is another major growth driver of the property sector, he said.

Another growth catalyst, he said, is the rise in locators in ecozones which will result in more jobs for provinces where the ecozones are located and this will prop up the domestic economies.

He said for the low to medium housing alone, the government has been aggressively supporting the construction of these units by financing part of the requirements for new homes from socialized to medium scale housing.

Pretty soon, we will be seeing commercial banks and financial institutions getting into the fray, Romero said.

 He said should the property sector be affected by the lay-offs of OFWs based in the US, Europe and Singapore, this will only result in 1 percent or less decline in the expected 5 percent growth for the property sector.

Romero was at the launch late afternoon of the Pinoy Lifestyle exposition at the former Rustan’s mall in Araneta Center, which was organized by CREBA members to showcase the services and products available from real property developers in their respective booths.