BPOs, tourism are property bright spots

By Amy R. Remo
Philippine Daily Inquirer
Posted date: January 30, 2009

MANILA, Philippines — Continued growth of the business process outsourcing (BPO) sector and the increased demand for tourism infrastructure are expected to do the Philippine property market a lot of good this year despite the global economic slowdown, property advisor CB Richard Ellis said.

“As the rest of the world continues to have a contraction in real estate markets, the Philippines will be a maverick market in Southeast Asia,” CB Richard Ellis chairman Rick Santos said at a news briefing.

Santos noted that the local property market would be different in 2009 in that it could “weather the challenges” posed by the global recession because the Philippines and the property sector are in a “much more stable” position.

Philippine banks were “much more stable” and better capitalized, construction remains active with buyers’ cash flow ensuring completion, market demand caters not only to foreign investors but also to local end-users, and market supply is now spread across Metro Manila and the provinces, he said.

Last year, CB Richard Ellis recorded an oversupply of office space.

Tourists are expected to reach four million in 2010, from 3.2 million last year, Santos also said.

That will mean further investment in accommodations for both foreign and domestic tourists, he said.

There is pent-up demand for top-class resorts in major tourist destinations, such as Cebu province, which currently requires about 400,000 to 500,000 new hotel rooms, he said. Edited by INQUIRER.net