Investors looking for a good return from overseas property should look at the Philippines according to a recent survey of expats carried out in the UAE by New Perspective Media (NPM). The survey showed 98 per cent confident of positive change in the country following the recent election of a new president and 93 per cent agreeing that the investment environment is already improving.
Indeed latest official government figures for the second financial quarter of 2016 show the Philippine economy expanding at 7 per cent, a figure only bettered globally by India at 7.1 per cent.
Property was felt very strongly to be the best investment to make in the Philippines with 80 per cent of those surveyed preferring real estate investment to any other, and a huge 90 per cent believing that now is the best time to invest and ‘very optimistic’ that property investment will bring significant gains over the next few years.
Managing Director of NPM, Karen Remo said: ‘A vast majority of the Filipinos in the UAE are confident in the improving investment scenario in the Philippines, this is an affirmative boost to the new administration of the Philippines as the economy’s growth registers stellar performance in recent months.
‘Our survey supports the increasing appetite of the Filipinos and the international community to invest in real estate. This is in response to the positive forecasts of good investment returns in the Philippines, which is now being considered the Asia’s rising tiger.’
Construction and real estate makes up about 20 per cent of the Philippine economy, higher even than manufacturing, and the economic growth is expected to increase demand in the property market.
The new political administratiin plans to lift the Philippines to a top three position in South East Asia for foreign direct investment and that strategy includes lifting foreign ownership rules from 40 to 70 per cent, while also hiking limits on land lease from 25 to 40 years. Increased government spending on countryside development and infrastructure will also boost the real estate market.
With Asean integration offering the country participation in global production networks, relaxation of foreign ownership restrictions will appeal to investors who look at the global market for goods and services, and in particular the property sector.
A recent report showed that the increase in personal disposable income of consumers as well as growth in commercial and residential projects have created rising demand for property in the Philippines.
According to property group KMC Savills the government’s economic growth plans will also have a positive impact on the real estate industry, continuing the boom over the next six years.
Now is the time to take another look at the Philippines for overseas property investment.