Revealed: Where UAE Filipinos investing savings

Nearly 20 per cent of Filipinos in the UAE plan to buy property in the Philippines within one year, with 50 per cent respondents putting property investment as priority, according to a survey of 1,000 Filipinos based in the UAE.

The survey, conducted by New Perspective Media, organisers of Philippine Property and Investment Exhibition (PPIE), found Bonifacio Global City, Makati and Metro Manila as the top cities for investment.

Respondents have also cited other locations nearby Metro Manila such as Laguna and Bulacan, as well as provinces including Cebu, Davao, Boracay, Bacolod, Ilo-Ilo and Cagayan De Oro.

PPIE, one of the largest Philippine property exhibition organised in the region, will be held on December 5 and 6 at Godolphin Ballroom, Jumeirah Emirates Towers.

The exhibition will see 18 of the country’s leading property developers, banks and government-backed financial institutions taking part and showcasing projects worth Dh2.5 billion (Php30 billion).

“Investing in Philippine property today is ideal for Filipino and international investors as prices are likely to soar substantially in the coming years. Global financial institutions and analysts forecast good investment returns in the Philippines, which is one of Asia’s most steady economies,” said Karen Remo, Managing Director, New Perspective Media.

“Our survey confirms the fact as majority of overseas Filipinos say they are looking at buying property back home for their families, or buy as an investment, in the coming 12 months,” she added.

The UAE is currently home to more than 750,000 overseas Filipino workers (OFWs), with over 2.2 million Filipinos working overseas. The World Bank report on remittances, released in October 2014, expects remittances from OFWs to reach $28bn this year, becoming one of largest recipient country in Asia.

The property event comes at a time when the Philippines is witnessing a stable property market, high appreciation and rental yields coupled with low interest rate and flexible financing terms.

Backed by a strong economy, a young and growing population and increasing income, the Philippines is Southeast Asia’s strongest performing economy and is among the world’s fastest growing residential markets.

The country is also one of the world’s top 10 fastest growing luxury property markets and has higher rental yields compared to other Asian countries. The growth is expected to remain robust as land values are still below their values during the 1997 Asian Economic Crisis.

PPIE is sponsored by Megaworld (Platinum) and Ayala Land (Gold) and is participated by Asiatravel.com, BDO (Banco de Oro), Better Life, BPI  (Bank of the Philippine Islands), Cleartrip, Core Ideas, DMCI Homes, Emirates Airline, Empire East/Suntrust, Gulf Law, Landgroup, Major Homes, Pag-IBIG Fund, Philippine Business Council Abu Dhabi, Primo Gelato, SM Development Corporation, Social Security System and Traders Hotel.

Raeyan C Basa, Vice-President MEA-2, International Marketing Division of Megaworld Corporation, said: “It’s a great opportunity to reach the large Filipino population in the UAE and we are very pleased to partner with the biggest property and investment event in the region targeted at promoting and showcasing the Philippine real estate.”

Talking about the growth prospects in the Philippine realty market, Thomas Mirasol, President, International Sales, Ayala Land, said: “The outlook is positive in most locations and in most market segments. There is still an acute housing shortage in the Philippines and it will be a few years before the supply shortage has been satisfied. There’s also a lot of infrastructure development going on which is expected to spur current homeowners to invest in second or third homes for their children or to upgrade into better accommodations.”

The Philippine economy grew by 6.4 per cent in the second quarter (April to June 2014) - the fastest pace since October 2011 – rebounding from the 5.6 per cent in the first quarter 2014, according to National Economic and Development Authority, the Philippines' socioeconomic planning and policy coordinating agency. The government is estimating gross domestic product growth of 6.5-7.5 per cent for the entire 2014.

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