Real estate consultant CBRE gung ho about PHL business prospects 2013

Real estate consultant CB Richard Ellis Philippines on Tuesday said there are no signs of a slow down in property development with prospects for next year definitely on a positive track.

"We are looking at sustained growth and success,” CBRE chair Rick Santos told reporters in a briefing in Makati City.

“The challenge now is how to cope with this unprecedented success," said Santos.

This is the "best real estate market in the last 20 years," he added.

In the office and commercial sector, the Philippines is holding a unique position in Southeast Asia with the phenomenal growth of business process outsourcing industry, according to CBRE.

"The Philippines is one of the top BPO providers in the world, surpassing India in voice operations, and second in non-voice," Santos said.

Another plus factor is that there is a lot of room for growth in BPO, particularly in software and web graphic development, information technology and engineering services, and healthcare, CBRE claimed. 

"The Philippines is one of the most cost-effective outsourcing destinations in Asia... Manila is now a strategic location for multinational companies and banks, as it supports and runs the world's businesses out of the Philippines," Santos noted.

What drives the BPO industry, and would continue to do so, are the large pool of talents, competitive labor rates, stable infrastructure, favorable business environment, and good government stewardship led by the Board of Investment and Philippine Economic Zone Authority, said CBRE vice chair Joey Radovan.

What government must do to sustain the industry is focus on educating talents to meet supply issues, continue developing infrastructure and strengthen the telecommunications component, and encourage the construction of more buildings.

Demand from the high-end residential market will continue in 2013, Santos said, noting however, that developers will start shifting toward the mid-income market 

But Santos said while demand for the high-end residential market will be sustained in 2013, developers will focus more on the mid-income market within the P45,000 to P80,000 per square meter range.

This, Santos claimed, reflects on the demand from a growing population of families and young professionals thriving on record-low interest rates.

"The confidence in the Philippines from an investment standpoint is very high and will pervade in 2013," he added.-GMA News (November 20, 2012 2:51PM)