The Philippines has been tipped as one of the year's hottest real estate markets, with tourism booming, major developments being undertaken, and high levels of foreign investment, including a recent $6.4 billion form China. Manila Condotel Marketing Networks has put the country squarely at the top of real estate investor's lists for this year.



Tourism is one of the most important driving factors in the property boom in the Philippines. In 2007, tourist arrivals in the hilippines reached over three million, with many visitors coming from emerging tourist markets such as China, Russia, the Middle East, and Korea. Tourism from these countries is in its infancy, and should help sustain growth. Figures suggest that around 3.4 million visitors will pass through the Philippines in 2008, with around 70% of these going through the capital, and up to 30% taking advantage of new direct flights into Mactan-Cebu International Airport.

Said the sales director of PLC International Marketing Networks, specializing in the Lancaster brand of Condotel Investments, "Foreign investors are looking at the positive effects of the stable Philippine peso, increasing tourist arrivals, the BPO boom, and the positive effect of overseas Filipino worker (OFW) dollar remittances into the country with investment opportunities in tourism and real estate remaining a high priority in Metro Manila and Cebu".

The property values in the Philippines should rise on the back of leisure and tourism developments, especially those by condo hotel developer, Pacoific Concord Properties. The company is constructing hotel and resort developments in strategic locations, such as the tourism-rich Mactan-Cebu, and the business center of Metro Manila in the Ortigas Center. Profit expectations are healthy, given a rise in hotel room occupancy rates in fugres released by the Philippine Department of Tourism. Occupancy rose from 71.95% in 2006 to 73.06% in 2007.

Merrill Lynch reported that the value of equities in the Philippines is as good as in Hong Kong - a great achievement for the country. While other Asian countries are being hit with high inflation, the Philippines is bucking the trend and growing healthily. Jojo Gonzales, Merrill Lynch's local head of research, said that property values in the Philippines "remain very buoyant", and that values will go higher.

The main investors in the Philippine property market currently are said to be expatriates and overseas Filipinos, as this group is quite willing to invest in quality housing, short and medium term condos, and quality leases. This is driving rents to new highs. It has also convinced Pacific Concord Properties to purchase an additional 27 units in the Lancaster Cebu Resort Residences.

One worry that property managers in the Philippines and real estate agents in the Philippines have is the high cost of construction which has hurt other Asian economies. Much of the country's construction materials are imported, so a weaker US dollar will impact on the cost of construction. As the greenback rises, however, the boom will continue.