Senator Ferdinand “Bongbong” R. Marcos, Jr. said the growth in OFW (Overseas Filipino Workers) remittances, BPO (Business Process Outsourcing) industry and tourism open fresh opportunities for the real estate industry in the country.
Marcos aired this view in his speech before the 5th Monthly Business Meeting of the CREBA (Chamber of Real Estate & Builders Association, Inc.) held Thursday (May 30, 2013) at the Grand Ballroom of Hotel Intercontinental in Makati City.
He pointed out that the huge amount of OFW remittances, reaching around $2.1 billion in 2012, has propelled the Philippines into a consumption-driven economy.
Out of the total expenditure pattern of OFW households, some 2.1% or $364 million in 2009 was reportedly spent on housing.
“OFWs have now therefore become the major market of housing developers nationwide,” Marcos said.
Marcos added that the Philippines had already overtaken India as the world’s number one in terms of the BPO industry, with an average annual growth of 24% from 2006-2010.
Quoting a projection of the Business Process Outsourcing Association of the Philippines (BPAP), Marcos noted that by 2016 and estimated 1.3 million will be employed directly in the industry with an estimated direct payroll valued at P546 billion.
Of this amount, Marcos said BPO employees would likely spend around 31% or P73.7 billion for their housing needs.
With the Department of Tourism projecting tourists arrivals to reach 6.3 million in 2016 from 3.74 million in 2011, Marcos said this would provide a major impetus for various real estate investments in the country.
“Given the above described developments in the country as affected by three major socio-economic variable—the growth in OFW remittances, BPO and Tourism---we can safely conclude that these existing and observable growth with its constraints and incentives should now guide the developers in our country,” Marcos said.