JLL, the Philippines’ leading real estate research and consultancy firm, is optimistic on the country’s real estate industry performance.
JLL Research and Consultancy envisions that the real estate industry is booming despite headwinds and is expected to expand to cities and key provinces outside Metro Manila such as the Greater Manila.
JLL has identified Pampanga, Bulacan, Tarlac, Laguna, Cavite and Batangas as provinces within the Greater Manila that are forecast to grow within the next three years. Laguna, Cavite, Batangas and Bulacan are anticipated to be the areas of significant interest for both residential and industrial sectors. On the other hand, Clark in Pampanga is foreseen to be the next big thing in township development, with a mix of office, retail and hotel while Tarlac is expected to attract more industrial developments.
JLL is optimistic that the healthy Philippine economy, the ongoing government Build Build Build projects, and the revisiting of current investment policies are factors that are encouraging both local and foreign firms to seriously consider putting their money in the Philippines. Additionally, existing and future infrastructure projects, proximity of warehouses to seaports or airports are also deciding factors that investors and firms take into consideration when choosing a location for their business.
While Metro Manila remains to be the preferred location of businesses, the acceleration of infrastructure is expected to decentralize both foreign and local investments, spilling over the economic and real estate benefits parallel to the direction of the Greater Manila area. JLL anticipates that improved infrastructure and a more fluid transportation system are crucial factors that will lead to increased productivity and will result to a stronger investment climate for businesses. Presently, JLL notes that the retail sector has been expanding at a stable pace as reputable developers such as Ayala Land, Inc., SM Prime Holdings, Vista Land and Lifescapes, Inc., and Robinsons Land Corporation have started to expand to the Greater Manila area to capture the underserved market, growing population and increasing incomes in these provinces.
JLL expects the booming real estate industry in the outskirts of Metro Manila to create a slew of business and employment opportunities. Communities are also forecast to flourish in these areas, which will mean a positive development not only for the real estate industry but for the entire Philippine economy.
The article is first published HERE on June 22, 2019.