Real Estate Boom Amid Economic Turmoil

Earlier today, I interviewed the general manager of a start up real estate firm who was set to launch its first residential project here in Cebu.

The company is actually the fourth real estate firm I interviewed for this month and I should say that this industry is not losing over to the global economic setback experienced the world over.

All four companies are very positive with their forecasts for this year, saying that the demand for lots, house and lots and condominium units in the province continue to rise.

And these companies all point out to similar factors why there exists such a trend in Cebu.

First, they attribute growth to the increasing number of overseas Filipino workers who believe in investing hard earned money on real property.

This is clearly evident of how the Filipino working class has matured in handling their finances. Although it really took a long way before the Filipino has come to terms with the fact that money should be spent wisely, at least we are now getting there.

The increase in the demand for residential projects is also an effect of many companies choosing to outsource a part of their businesses to the Philippines. The offshoring and outsourcing industry here is a growth driver not just for the real estate industry but also to tourism, food and retail industries.

Employees in the BPO sector are almost being singled out as the ones more capable to buy properties because of the hefty pay they are receiving. On the downside, they become easy targets for consumerism.

Cebu, being a business hub, has also become home to implanted residents who come here initially for business but ends up staying for the long term because of the many pleasures the city has to offer.

Now the real estate industry here is in for a stiff competition. And I guess this is not a bad thing after all. (Deejhay Magallon)