Tuesday, 23 April 2013

Phillipines - the Emerging Star in Real Estate

When we look into areas to invest, I always start at the Macro Level, Strong GDP growth and strong demographics. The outlook for Phillipines is great and it has one of the highest population growth rates in Asia at 2.04% according to a 2010 census and its population is set to grow even further in the coming years due to improved economics and healthcare. According to a research report, the population of phillipines may reach 101.2 million by 2014.

Phillipines' main city is Manila and it is an urban metropolis and is ever expanding due to rural, urban migration and a strong economy. It is a MEGAPOLIS.

As an investor, I am concerned about the working population and the educational level. The rate of urbanisation is great at 2.3% and the main bulk of the population is 25-54 which is 36% of the population. This is a fantastic demographics. 36% of the workforce is at a productive age and the next wave in the next 30 years, the 0-14 age group is at 34.3%. It just screams " We need housing " to you!

If Manila grows at 2% a year - it will require about 69,000 new housing a year at 3.9 pax per household. If Manila's population is mostly yuppies, we can even estimate to be 138,000 new housing a year. Thats a lot! 

Looking at the GDP Growth rate of 6.2% shows that its economy is strong and the wages should be rising as well. Phillipines is indeed a rising star in Real Estate.

Before you embark on any investment, it is always wise to conduct your own research into the laws and management. A property without management is not going to work.

Here are some facts for you to digest :

Age structure

0-14 years: 34.3% (male 18,175,763/female 17,452,488)
15-24 years: 19.1% (male 10,107,717/female 9,753,268)
25-54 years: 36.6% (male 19,065,843/female 18,941,091)
55-64 years: 5.6% (male 2,663,592/female 3,102,247)
65 years and over: 4.3% (male 1,948,152/female 2,564,841) (2012 est.)


urban population: 49% of total population (2010)
rate of urbanization: 2.3% annual rate of change (2010-15 est.)

Major cities - population

MANILA (capital) 11.449 million; Davao 1.48 million; Cebu City 845,000; Zamboanga 827,000 (2009)

The following Websites for more information.


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