Why Invest in The Philippines?
The Philippines is located right in the heart of Asia, today the fastest growing region. It is located within four hours flying time from major capitals of the region. Sited at the crossroads of the eastern and western business models, it is a critical entry point to over 500 million people in the Association of Southeast Asian Nations (ASEAN) market and a gateway of international shipping and air lanes suited for European and American businesses.
More than just a location, investing in the Philippines is about making a strategic business decision.The Philippines is one of the more dynamic markets in the global economy, its general economic outlook improved significantly in recent years and the country has made promising headway towards more sustainable and equitable economic development. Bright spots in the economy include Real Estate, tourism, mining, agriculture, bio-fuels and renewable energy, and infrastructure. The Philippines is endowed with rich and diverse natural resources that provide seemingly unlimited opportunities.
The Philippines natural pool of talents and culturally adaptable human resources, position the country as the most value-for-money destination for investments in the Asian region. The Philippines places a high-value on education that equips the labor force with world-renowned technical competency and English proficiency. Significant reasons for "Investing in the Philippines" :
Positive Economic Growth
Consistent Increase of Capital Values
Attractive Rental Yields
Greater yields as Compared to other investments
Affordable and Less expensive compared to other countries
BEST climate for “Live- Work- Play”
Cash flow and Income generating Investment
Real Estate Investment : a pride of ownership
source of basic info: DOT
Manila, Why NOW?
The Philippines has been politically stable now for decades and recently the government announced a truce in the long running war with the muslims in the south of the country who wanted a separate state.
With the solution to the above crisis and the success of the economies in South East Asia investors are actively seeking out new opportunities and the Philippines is rich in commodities and agricultural resources which makes the Chinese, Japanese, Koreans & Singaporeans keen investors.
Manila and the Philippines has suffered from under development for decades due to corruption and lack of funds. This means the country now has a significant way to go to catch up with the infrastructure required to help it sustain its current high rate of growth.
The Philippines has wealthy and successful neighbors looking for investment opportunities in a stable country who are now helping to fund the infrastructure which is required.
With the current economic upturn in Manila creating many new jobs in Manila and also attracting many of the worlds top companies there is a shortage of decent residential accommodation.
The Philippines is blessed with one of the best educational systems in South East Asia which means that English is spoken by almost everyone and that English is the language of business. Proof of the high esteem that education is held can be seen by the millions of Filipinos who work around the world as nurses, engineers and other skilled professions. These people are called ‘overseas foreign workers’ [OFW’s] and bring more revenue to the Philippine economy than any other source and are currently the largest buyer of investment property in the Philippines.
The property sector in Manila is well regulated allowing the buyer to have peace of mind that their investment is secure. The major developers in Manila are well known and have won awards and projects internationally which they have developed to very high standards.
Manila due to the excellent level of English spoken by the local people has become a rival to India for the ‘International Call Centre Business’. This is an extremely lucrative and sustainable business for Manila which employs thousands and helps multi national companies in Europe & the US reduce their costs.
With the booming economy in Manila dragging workers into the central business districts rents are high and often unaffordable for many creating long commutes for them into work.
This means that rental yields in Manila are high compared with other capital cities around the world including SE Asia giving the buyer a yield which can be over 7% annually.
For decades the Philippines has been one of the sick economies of Asia due to corruption, political instability and war. Although corruption is still an issue over the last decade the Philippines is being dragged into the fast lane of economic growth by the success of nations around and by its own improving situation.
The renewed optimism and stability in the Philippines has led to many of the worlds top companies setting up in Manila. A key driver for the property market is that banks are now starting to provide mortgage finance to both resident and foreign buyers making property more affordable. The government of the Philippines is also aggressively promoting the Philippines for international investment and the legal system already allows and promotes foreign ownership of property and business. Currently the government is also promoting the Philippines as a retirement destination as well as for tourism through a series of global adverts to promote the country.
Another cause of great optimism is the success of ASEAN [Association of South East Asian Nations] and the greater role this is now playing in influencing the economies of the region and bringing them closer together. The Philippines is a member of ASEAN which has helped promote peace and prosperity in the area of SE Asia and which gains more significance each year. ASEAN has now set out a vision of closer economic ties for the region and the removal of all tariff barriers which will further increase the volume of business, tourism and trade between ASEAN members.
ASEAN comprises a range of countries who are at different stages of their economic development. Singapore is one of the most advanced economies in the world and can provide ASEAN members with invaluable knowledge and skills due to its success over the past many decades. ASEAN also has other economies like Cambodia which need significant investment and help from others in the region to bring economic success.
The region of ASEAN is one of the fastest growing economic regions in the world which includes Indonesia; home to the worlds largest muslim population. Being part of ASEAN offers the Philippines the opportunity to be part of an economic union which in time is likely to become more significant than the EU. Unlike the EU ASEAN does not have the financial debt of the EU and in fact there is plenty of liquidity to invest into infrastructure and business projects which will only benefit Manila & the Philippines.
In 2012 the Philippine stock market was one of the top performers in the world demonstrating the economic success of the country. The property market forms a key part of the growth especially in Manila and this is projected to remain strong and offer significant opportunities to the International investor for years to come.
PHILIPPINE BUSINESS SECTORS
Agriculture, Hunting and Forestry
Construction
Economy Wide
Electricity, Gas and Water Supply
Financial Intermediation
Fishing
Health and Social Work
Hotels and Restaurants
Manufacturing
Mining and Quarrying
Other Community, Social and Personal Service Activities
Private Education Services
Real Estate, Renting and Business Activities
Transport. Storage and Communications
Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods
-National Statistics Office
-BANKO SENTRAL NG PILIPINAS
Housing Index
The Housing Index refers to the residential construction activity taking place in a specific country in a certain period of time. The measure differs across countries and may refer to the building approvals or permits; construction permits, starts or orders; buildings or dwellings completed; new houses built or housing started. Can also show the house price index, property price index, construction cost index, average houses price or value of residential mortgages.
-NSO
The global investment banking and securities firm Goldman Sachs has named the Philippines as part of the N11- the next 11 countries(Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, The Philippines, Turkey and Vietnam) with highest economic potential in the world.
National Competitiveness Council of the Philippines