The Philippine real estate market has the potential to become a $300 billion industry by 2031. The jump from the $48 billion reported for 2011 will only happen if the country (which boasts strong population growth and an equally strong of the middle class) will adopt less stringent rules on ownership by foreigners and on the duration of lease contracts. This was stated by the real estate consultancy and brokerage firm Jones Lang LaSalle. Jones' country manager David Leechiu Lang LaSalle urged Manila to make the necessary changes at a time when major fund managers are hesitant to invest in the Asian country.
According to Leechiu, the local real estate sector will experience impressive growth over the next 15 years. Developers such as Ayala Land and SM Prime Holdings are committing billions of dollars in capital spending in 2014 and are starting to build shopping malls, houses and hotels. However, the Philippines accounts for only a small slice of the global real estate market.
In 2011, the size of the country's real estate amounted to 48 billion, or only 0,2% of the global market. In 2031 it will account for 0,3% with China taking the lion's share with a value of $26,4 trillion, followed by India with $5,5 trillion. In 2031, the Asia-Pacific area will account for 48,8% of the market (equivalent to $44,94 trillion) compared to 27% in 2011.
Attachments: Business Inquirer
