Provide your email for confirmation

Tell us a bit about yourself

country *

Please provide your email address

welcome to Rappler

Login

To share your thoughts

Don't have an account?

Login with email

Check your inbox

We just sent a link to your inbox. Click the link to continue signing in. Can’t find it? Check your spam & junk mail.

Didn't get a link?

Use password?

Login with email

Reset password?

Please use the email you used to register and we will send you a link to reset your password

Check your inbox

We just sent a link to your inbox. Click the link to continue resetting your password. Can’t find it? Check your spam & junk mail.

Didn't get a link?

Sign up

Ready to get started

Already have an account?

Sign up with email

By signing up you agree to Rappler’s Terms and Conditions and Privacy

Check your inbox

We just sent a link to your inbox. Click the link to continue registering. Can’t find it? Check your spam & junk mail.

Didn't get a link?

Join Rappler+

Join Move

How often would you like to pay?

Annual Subscription

Monthly Subscription

Your payment was interrupted

Exiting the registration flow at this point will mean you will loose your progress

Your payment didn’t go through

Exiting the registration flow at this point will mean you will loose your progress

welcome to Rappler+

welcome to Move

welcome to Move & Rappler+

Real estate is fastest-growing industry in Q3 - officials

BOOMING. Real estate projects, fueled by remittances and the outsourcing industry, contribute to economic growth.

Photo by Franz Lopez

MANILA, Philippines - The real estate industry saw a revenue growth rate of 18.8% in the third quarter of the year, making it the fastest growing among all industries, said officials.

“Real estate posted strong expansion as major players including Ayala Land, SM Prime Holdings and Megaworld posted double-digit revenues in terms of real estate and rent of commercial spaces,” said Socioeconomic Planning Secretary, Arseio Balisacan, at a press conference on the Philippines' third-quarter gross domestic product (GDP) growth on Wednesday, November 28.

According to Jose Ramon Albert, Secretary-General of the National Statistical Coordination Board, the country's better-than-expected 7.1% growth in the third quarter was driven largely by services sector growth, which was, in turn, partly fueled by real estate, renting and business activity.

“We have previously noted that a major driver of this growth is the demand for office space due to the strong outlook of the BPO sector. Also favorable economic conditions led more individuals to purchase residential properties,” said Balisacan.

Aside from BPO, real estate growth was also buoyed by higher construction expenditures, said Balisacan.

“Spending for construction of physical capital increased by 24.3% in the third quarter of 2012 a huge turnaround from a negative 8.8% performance in the third quarter of 2011. Both private and public construction registered more than 20% growth rates during the period,” he explained.

Public construction grew 23.7% in the third quarter, reversing its 19% drop in 2011, while private construction expanded 25%, also reversing its 5.9% decline last year.

“Public spending on construction grew back by higher capital outlay of government 38.4% more for roads and irrigation projects. Most of these projects were implemented outside NCR in keeping with our objective of inclusive growth,” said Balisacan

“These figures just confirm that theres a lot of investment going on. While the growth of the economy is primarily consumption driven there are also investmetns coming in.”

 Major players and consultants have remained bullish on their real estate forecasts.

“It took 20 years to get the stars aligned but now we’re looking at sustained growth. We are now experiencing the best real estate market in the Philippines in the last 20 years,” Rick Santos, chairman and CEO of property advisory firm CBRE Philippines, previously said. - Rappler.com