The Interrelation of the Real Estate Industry with other Top Industries



Getting a house plan in the Philippines that will suit all your needs is a challenging experience. But once you found that house plan that will totally fit your budget, it is a very rewarding experience given the direction the real estate industry is heading.

The real estate industry for years has become one of the steadiest industries in the Philippines. Its success is closely attributed to the incline of the Philippine economy in general. According to the April 2016 report of The World Bank, the Philippines has remained as a strong performer in the region despite the slow global growth. It is predicted that it will remain strong and will project an accelerated growth of 6.4 this year before faltering slightly to 6.2 percent in 2017. During the same period, according a property digest by JLL Philippines, the demand for office space will remain very strong. The demand for residential condominium will also maintain an upward trend. While these statements in collective, reflect a boom in the property/real estate industry, the success of this industry relies on the demand for the other top industries in the Philippines like business process outsourcing, hospitality and leisure, manufacturing, and construction.

The business process outsourcing, hospitality and leisure, manufacturing, and construction are industries that have dependence for good locations. Most of these industries rely on the effectiveness of the location that they can acquire to be able to advance from their competitors. And this is where the industry of real estate comes into picture in aiding the under industries.


Business Process Outsourcing

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The progressing climb of the BPO industry in our economy is one of the contributing factors for the success of the real estate property. Location is one of the factors that BPO agents consider in choosing a BPO to work for. Among the most sought after office locations are those that are around Metro Manila districts, Ortigas, Makati. These areas have remained the largest contributor of office area supply in the 2nd quarter of 2016 with an approximately 2.7 million square meters. Other urban districts like Bonifacio Global, McKinley Hill, Bay City, Quezon City and Alabang comprises an additional 3 million square meters of office space.


Hospitality & Leisure


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Tourism is one of the selling points of some of the real estate locations in the Philippines. The Department of Tourism has forecasted that the number of international tourist will reach six million by the end of the year. From January to May, the international tourist arrivals has reached 2.52 million which is a 13% increase compared to last year. Along tourism are the sales of hotels and leisure centers. Metro Manila hotel industry in the 2nd quarter of 2016 continues to rise. An approximation of 11,300 hotel rooms has been added to the existing stock.



Manufacturing & Construction


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If we look at it closely, if there is a demand for infrastructures, there is also a demand for construction which strings the relationship of real estate to the construction firms. The residential space demand in the second quarter of 2016 has been positive due to the economic activity. The vacancy rate of luxury condominiums in Makati and BGC has decrease to 6.3% from last year’s 7.5 percent.



These data represent not just the success of real estate industry so far in the 2016 but it also shows how the top industries in the country are interdependent with each other. Understanding this will make sure that the movement of our economy maintains a step forward to national prosperity.


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