With a backdrop of a rising economy and solid GDP growth, the booming Philippines property sector is driving a huge majority of Filipino expats based in United Arab Emirates (UAE) to start an overseas property investment in the Philippines, according to a recent survey.
In a survey of 1,000 UAE-based Filipinos, corporate communications agency New Perspective Media (NPM) found that 98% foresee “true positive change” in the Philippines after the election of President Rodrigo Duterte. Meanwhile, 90% responded that “now” is the best time to invest in the Philippines property market, with 80% saying that investing in real estate is the best investment method. Additionally, 20% of the respondents opted for other overseas buying options such as stocks, mutual funds, and bonds.
Promising economic landscape
The Philippines is hailed the second fast-growing economy in Asia for the second quarter of this year, with an economic growth reaching 7%. It is followed by China (6.7%), Vietnam (5.6%), Indonesia (5.2%) and Malaysia (4%). India reigned with the highest growth at 7.1% in the second quarter.
Hence, the country’s strong economic growth boosted the demand for Philippines property. According to Oxford Business Group, 20% of the country’s economy belongs to construction and real estate in Philippines.
Favorable, upcoming changes in foreign property investment
The new Philippine administration has started to address macroeconomic issues with regards to the property sector, according to the Philippines property services provider KMC Mag, an affiliate of the international property group Savills.
One of the new administration’s plans is to increase the foreign ownership rules from 40% to 70%, and raise limits on land leasing from 25 to 40 years. These let-ups on foreign ownership restrictions will most likely benefit overseas property investors who look at the global market for potential investments.
The report also mentioned that the Philippines’ economic plans focus more on countryside development, infrastructure and agriculture growth and increased government spending. When paired with the administration’s goal of putting the Philippines on the top three spots in South East Asia for foreign direct investment inflows by 2022, a very promising future can be seen for the real estate industry.
KMC Savills added that the Philippine government’s economic growth plans will have a positive impact on the Philippines property and real estate sectors for the next six years.
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