Real estate demand to stay robust next year

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By Franz Jonathan F. dela Fuente

Business World

November 20, 2012

http://www.bworldonline.com/content.php?section=Economy&title=Real-estate-demand-to-stay-robust-next-year&id=61717

SUPPLY AND DEMAND levels for the country’s residential and office sectors are expected to continue to grow next year on the back of a bullish local investment climate, particularly in the growing BPO (business process outsourcing) sector, local real estate services firm CB Richard Ellis Philippines, Inc. (CBRE Philippines) said yesterday.

“We are now experiencing the best real estate market in the last 20 years. Suffice it to say that if you build it, they [the buyers]will come — be it office, residential, or leisure properties,” Rick M. Santos, CBRE Philippines chairman and chief executive, said during the firm’s year-end briefing at the Makati Shangri-La yesterday.Optimism in the local property sector is being driven by the numerous investments coming in as a result of an attractive business climate.

“The confidence in the Philippines from an investment standpoint is very high, and will pervade in 2013. The Philippine real estate sector will have bright prospects in 2013,” Mr. Santos said.

Joey M. Radovan, CBRE Philippines global corporate services vice-chairman, said that the office market, for one, continued to enjoy robust pre-leasing commitments across major locations, with demand coming from BPOs.

Earlier this year, CBRE Philippines noted that pre-leasing activity, defined as initial payments between tenant and landlord prior to the payment of actual rent, was beginning to grow to pre-Asian Crisis levels due to the economy’s stability.

CBRE Philippines identified Quezon City, particularly Eastwood City and the UP-Ayala Land TechnoHub, as the next emerging office growth district in Metro Manila.

“The office sector will continue to perform well in Asia Pacific as it is one of the most cost-effective outsourcing destinations in the region. The country provides a conducive environment for foreign investors,” Mr. Santos explained.

An optimistic outlook is also seen for residential sector: “While demand for the high-end market will be sustained in 2013, developers will focus more on mid-income residential market segment within the P45,000- to P80,000-square meter range, reflecting the demand created from the growing population of families and young professionals,” CBRE Philippines said in its statement.

First Advantage

Dear Mr. Rick Santos and Mr. Joey Radovan,

This writing is to commend CBRE and especially two of his team members who helped us in our recent search of new space.

Both Francis Bautista and Philipp Llave have demonstrated from the start dedication in understanding our requirements and needs of our office space in order to come up with effective proposals and solutions that would cater to the need of our business.

What at first seemed to be pretty and difficult position to be in our business (landlord not willing to renew lease at the last minute) turned out to be even better and more beneficial for us seen the lower cost in rent and better amenities of the new location.

Swift communication and effective execution of the milestones of this project are qualities that have been highly appreciated from both of them.

Therefore I want to thank and commend the CBRE team represented by Francis and Bautista for their great support and partnership.

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