Why more Pinoys want to invest in realty back home

Dubai - More purchasing power, consumer confidence key factors.

Armed with higher purchasing power, a surge in consumer confidence and improved financial literacy, more Filipinos in the UAE are planning to buy properties back home.
A survey conducted by New Perspective Media, or NPM, organisers of the Philippine Property and Investment Exhibition, or PPIE, shows that 78 per cent of Filipinos intend to buy properties back home within the next two years. The figure has gone up compared to NPM's 2014 survey, which showed that only 43 per cent indicated interest to invest in properties within the same period.
The latest survey also showed that the number of those who plan to invest in a property within a year has more than doubled to 46 per cent compared to 22 per cent last year.
The survery further reveals that this year, majority of the respondents still opt for the two million peso (Dh167,000) price ceiling. Those who indicated preference to buy high-end properties costing above five million pesos, however, significantly increased at 13 per cent from seven per cent in 2014.
The survey, which randomly asked 1,000 respondents, shows that 60 per cent prefer to buy a house and lot, 30 per cent opt to invest in a condominium and 10 per cent intend to invest in lots only.
The PPIE, the largest international Philippine property exhibition in the region, concluded on Saturday, which saw 23 participants including eight of the country's leading property developers, as well as banks and other brands, offering investment opportunities to the growing Filipino base in the UAE, which is currently home to about a million overseas Filipino workers.
"The Philippines' strong economic performance during recent years continues to push its property market upwards and international industry experts agree that now is the best time to invest in real estate," said Karen Remo, managing director of NPM.
"Investing in Philippine property today is ideal for Filipino and international investors as prices are likely to soar substantially in the coming years," she added. "Our survey confirms a substantial increase in investment appetite and this is in response to positive forecasts of good investment returns in the Philippines, which is one of Asia's steadiest economies."
The International Monetary Fund projects the Philippine economy to grow by 6.5 per cent this year after posting real GDP growth rates of 6.1 per cent in 2014, 7.2 per cent in 2013 and 6.8 per cent in 2012.
This early, the rosy forecast has already translated to a 0.91 per cent quarter-on-quarter increase in the country's housing prices during the second quarter of 2015, according to the latest report from Global Property Guide.
Colliers International echoed the same positive output in its second-quarter housing report. The firm pointed out that properties located in the Makati Central Business District benefitted the most. According to property consultancy firms Jones Lang LaSalle and Colliers International, Manila's residential property recorded the maximum price growth among Asia-Pacific cities during the last three months of 2014.
Property prices in the Philippines are being supported by continuously improving economic conditions. The expanding offshoring and outsourcing industry as well as the positive economic outlook is expected to continue to support leasing and investment demand, which in turn is slated to support rent and price growth for the next several quarters.
Anna Tatlonghari, general manager of Ayala Land International Sales, said: "The income created by overseas Filipinos has allowed millions of people in overseas Filipino families to spend more and live better lives. This consumption has contributed directly to the country's GDP."
- business@khaleejtimes.com