Real estate growth hits historic high
Malaya
The Philippine real estate industry grew by an average of 17 percent last year, a record high, brought about by the expansion of malls, new buildings for call centers and more detached houses built by overseas contract workers.
Data from the National Statistics Office showed that the Gross Value Added of 17 percent last year, the highest annual growth achieved since 1967. It outperformed the previous year’s 15.4 percent growth and even the 2004 boom year growth of 16 percent.
The NSO estimated that GVA at constant prices reached P14.3 billion in 2006, higher than P10.6 billion and P12.2 billion recorded in the years 2004 and 2005, respectively.
The robust annual performance in real estate industry was driven by increased renting and leasing operations as a result of the opening of upscale giant super malls and commercial and shopping centers.
The growth was further buoyed by the strong production and sales of residential developments in subdivisions and high-rise condominium projects fueled by the significant contributions of the remittances of Overseas Filipino Workers (OFWs) and Filipino immigrants.
Likewise, the growth of Business Process Outsourcing (BPO) sector continued to boost sales and occupancy of office spaces, especially in the leading commercial business districts in the country.
In the eighties, real estate industry was affected by the economic and political developments in the country. While it grew by 13.6 percent and 13.9 percent in 1980 and 1982, respectively, the sector plummeted by 25.3 percent in 1984, after the assassination of former senator Benigno Aquino, its worst performance in almost 40 years.
From 1991, the industry gradually increased, attaining a 10.7 percent growth in 1996 before slowing down in the next five years to a low of negative 10.7 percent in 2001, the second lowest annual growth rate since 1967.
The slowdown was largely attributed to the 1997 Asian financial crisis, which was felt not only by real estate players and consumers but also by the entire economy.
Starting 2002 however, the industry picked up and remarkably recovered until its boom in recent years including the all-time high of 17.1 percent in 2006.
The industry sustained last year’s growth during the first quarter of the year. Indicators such as expansion of existing malls and shopping centers, increased office space demands from the call center industry and business process outsourcing (BPO) sector, and stepped up priming activities of major real estate establishments likewise indicate that the growth could continue for the coming quarters.
GVA is made up of services produced in real estate buying, selling, subdividing, renting, leasing, operating of self-owned/leased apartment buildings, non-residential and dwellings, cemetery developments and real estate activities on a fee and contract basis.
Proceed now to our Homepage Pinoy Realty
The Philippine real estate industry grew by an average of 17 percent last year, a record high, brought about by the expansion of malls, new buildings for call centers and more detached houses built by overseas contract workers.
Data from the National Statistics Office showed that the Gross Value Added of 17 percent last year, the highest annual growth achieved since 1967. It outperformed the previous year’s 15.4 percent growth and even the 2004 boom year growth of 16 percent.
The NSO estimated that GVA at constant prices reached P14.3 billion in 2006, higher than P10.6 billion and P12.2 billion recorded in the years 2004 and 2005, respectively.
The robust annual performance in real estate industry was driven by increased renting and leasing operations as a result of the opening of upscale giant super malls and commercial and shopping centers.
The growth was further buoyed by the strong production and sales of residential developments in subdivisions and high-rise condominium projects fueled by the significant contributions of the remittances of Overseas Filipino Workers (OFWs) and Filipino immigrants.
Likewise, the growth of Business Process Outsourcing (BPO) sector continued to boost sales and occupancy of office spaces, especially in the leading commercial business districts in the country.
In the eighties, real estate industry was affected by the economic and political developments in the country. While it grew by 13.6 percent and 13.9 percent in 1980 and 1982, respectively, the sector plummeted by 25.3 percent in 1984, after the assassination of former senator Benigno Aquino, its worst performance in almost 40 years.
From 1991, the industry gradually increased, attaining a 10.7 percent growth in 1996 before slowing down in the next five years to a low of negative 10.7 percent in 2001, the second lowest annual growth rate since 1967.
The slowdown was largely attributed to the 1997 Asian financial crisis, which was felt not only by real estate players and consumers but also by the entire economy.
Starting 2002 however, the industry picked up and remarkably recovered until its boom in recent years including the all-time high of 17.1 percent in 2006.
The industry sustained last year’s growth during the first quarter of the year. Indicators such as expansion of existing malls and shopping centers, increased office space demands from the call center industry and business process outsourcing (BPO) sector, and stepped up priming activities of major real estate establishments likewise indicate that the growth could continue for the coming quarters.
GVA is made up of services produced in real estate buying, selling, subdividing, renting, leasing, operating of self-owned/leased apartment buildings, non-residential and dwellings, cemetery developments and real estate activities on a fee and contract basis.
Proceed now to our Homepage Pinoy Realty
posted by Pinoy Realty at
10:31 AM
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