OFWs, Fil-Ams to continue to fuel Philippine Residential Projects Surge!
09/11/2006

Residential projects in the Philippines are projected to be lifted by huge demand from overseas Filipinos, both from the overseas Filipino workers' (OFW) and the Fil-American segments.

According to real estate consultancy firm CB Richard Ellis, remittances and earnings from the sectors will drive the demand for residential projects in the Philippines.

The analysis said the prognosis for residential development targeting the middle to high income markets will remain upbeat due to growing demand from these consumers.

However, there is a supply squeeze looming in the horizon for the high-end market, since no new developments are seen in this segment until 2009. Most developers appear to be focused on the upper middle income residential apartment market.

The middle income projects are defined as being between P50,000 to P70,000 per sqm. while high income is P70,000 to P100,000 per sqm. Growth in the residential sector has largely been fueled by OFW remittances and Filipino-Americans as local developers continuously go on an international "roadshow" to market their projects abroad, particularly in the United States.