Asia-Pacific region is considered as one of the very good investment regions, particularly in real estate market. One of the attractive markets that can be found here is the Philippines that offer a cosmopolitan, trendy, welcoming life for overseas investors.
Due to the robust economic growth of the country, property or real estate has remained as the top investment choice for Filipinos, particularly the Overseas Filipino Workers (OFWs) as they consider it a stable investment vehicle. They search for avenues to have a regular cash flow, especially when they decide to come home for good in the future.
According to Dr Karen Remo, New Perspective Media Group co-founder and Managing Director, World Bank had pointed out that the Philippines “continues to be one of the fastest growing economies in the world, with increasing urbanization, a growing middle-income class, and a large and young population.”
Most families with a member working overseas are spending the money that was sent home on property because the cost of luxury living is so much affordable in the Philippines, making it easier for them to own a property. According to the latest quarterly consumer expectation survey of the Philippines’ central bank, 11.8% of households with a member working overseas spent remittances to purchase a house up from 8.7% in the second quarter.
A survey of 10,000 Filipino expats showed that 80% of overseas Filipino workers (OFWs) consider buying property in the Philippines. Big investors who already invested in the Philippines still want to invest more on properties because real estate companies offer affordable rates and flexible financing schemes. 53% of the OFWs in UAE prefer Manila as their top location to invest with, followed by Cavite, Laguna, Batangas, Davao, Cebu, Iloilo, Bacolod, Pampanga, and Bulacan.
This year, cash inflow from workers abroad reached 12.7 billion in the first six months, a 6.2% increase from the same period last year. Though remittances accelerated slower compared to the past year, much of these cash inflows are still channeled towards purchasing residences reserved for when OFWs retire in the country or for their loved ones to own.
Since OFWs believe that investing in a property market accumulates wealth, it keeps on spreading fast and became a positive trend.
