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There is a need for Investors attending the Lamudi Housing Fair 2018 at TriNoma to get a grasp on how these industries can be a viable part of their businesses.
More than the pristine beaches, exotic delicacies, and ever-hospitable people, the Philippines is known for being a sweet spot for businesses. The sustained economic growth, excellent Filipino workers, favorable business environment, open culture, and strong local consumption are just a few of the things that make the Philippines a worthy investment destination.
The two-day Lamudi Housing Fair 2018, which will be held on April 21-22 at TriNoma in Quezon City, is an excellent opportunity for investors to not only get to know the real estate landscape of the country but also get a sense of how profitable it is to invest here.
With this, let us take a look at some of the most enticing industries in the Philippines that are expected to remain lucrative in the coming years.
Real Estate
Real estate is something investors can never go wrong with, given that there will always be demand for spaces as the population increases. This makes the sector a sustainable investment vehicle, allowing potential investors to access home seekers, including young professionals and executives, students, and growing families.
The housing and condominium rental market is thriving particularly within central business districts like Ayala CBD in Makati, Ortigas District in Pasig, Triangle Park in Quezon City, and the Bonifacio Global City in Taguig. Moreover, real estate developers are building their projects in fringe locations nowadays, thus renewing interest in these once-neglected areas. For instance, Bay City in Pasay has also become more attractive for property hunters, especially for foreigners and expatriates.
Offices and retail and industrial spaces are also poised to see greater demand in the years to come as business investors set up their operations in the Philippines.
Interestingly, the growing number of freelancers in the Philippines has resulted in the burgeoning demand for co-working office spaces, which is now becoming an increasingly attractive investment option.
Agriculture
According to the Philippine Statistics Authority (PSA), agriculture, hunting, forestry, and fishing accounted for 9.3 percent of the nation’s total gross domestic product (GDP) in the last quarter of 2017. The sector managed to grow 2.4 percent in the said quarter.
If this trend continues, investors will reap what they sow in the Philippines’ potent agricultural industry. As a tropical country, it possesses massive agricultural land sprawling 9.7 million hectares, which is suitable for crops like rice, corn, sugarcane, banana, coconut, pineapple, mango, cassava, rubber, coffee, cacao, and bamboo. Add to that the healthy poultry and livestock production as well as the country’s waters teeming with different aquatic resources.
Business Process Outsourcing
Business process outsourcing (BPO) is one of the most dynamic and fastest-growing industries in the Philippines for the last decade. According to industry think tank Tholons, the country’s BPO industry has created 1.3 million new jobs and has recorded an annual growth of 17 percent in 2016.
What is dubbed as the “sunshine industry” maintains its luster because of several factors, including the competency and English proficiency of the human resources pool, the greatly economical labor and other operations costs, and the favorable business conditions set by the government’s policies.
In its report Roadmap 2022, the Information Technology and Business Process Association of the Philippines (IBPAP) expects the BPO sector to generate USD 40 billion in revenues, create 7.6 million direct and indirect jobs, and make up 15 percent of the total global outsourcing market. Also, earlier predictions from other industry experts indicate that this year could see revenues from the BPO sector surpassing remittances from overseas Filipino workers (OFW).
Infrastructure and Construction
With President Rodrigo Duterte’s ambitious Build Build Build Program, the infrastructure and construction industry is expected to boom and be a fast-moving industry in the next years.
According to the Department of Trade and Industry (DTI), the government is opening up the industry to foreign investors who could potentially be granted construction permits and become registered as local contractors. This is a great time for foreign investors to take part in the development of the country as a major infrastructure powerhouse and access thousands of highly skilled Filipino engineers and operators.
Tourism
The Philippines boasts some of the world’s most scenic tourist destinations like the Chocolate Hills in Bohol, Boracay Island in Aklan, and El Nido in Palawan. The country is undoubtedly one of the most sought-after travel destinations. In fact, recent figures from the Department of Tourism (DoT) revealed that foreign arrivals hit 6.6 million last year, up 11 percent from 2016. This year, the DoT expects tourist arrivals to hit 7.4 million.
This growth spurs an increasing demand for products, services, and facilities related to travel and tours like accommodations, transportation, and food and beverage.
Retail
The retail industry in the Philippines is expected to blossom, now that the sustained economic standing has resulted in an increase in spending power.
Online market research portal Statista projects that retail sales in the country will maintain its growth over the past five years and reflect a 5.5 percent improvement this year. Shopping malls, convenience stores, and other retail outlets will continue to be a bright spot for investors.
