Real estate sector resilient despite floods

Last Aug. 7, torrential rains across the region caused heavy floods and suspension of work in public institutions and most private companies. Nonetheless, leading real estate service and advisory firm CBRE Philippines said this will not dampen the growth of the property sector.

Rick Santos, chairman and founder of CBRE, said the recent disaster only tested the resilience of the business process outsourcing (BPO) sector. He added that despite the floods, BPOs were able to ensure the safety of their employees and were able to deliver services despite the floods.

The Philippines continues to be one of the most-cost effective outsourcing destinations in Asia and has since surpassed India as the call center destination in the region.

“The property market will continue to gain strength. The country’s strong macroeconomic fundamentals will drive the sector forward. However, we see a more focused demand in well-located and well- developed properties that are managed using international standards. Questions such as ‘is my property on high ground, how are the drainage systems, what plans or mechanisms are in place in times of emergencies and calamities, and who manages the building’ will come to the forefront of the purchase decision,” he added.

Santos further noted that as an aftermath of the recent floods, developers will be more receptive to the needs of occupiers in terms of business continuity, disaster preparedness, as well as practices that are in tune with global standards.

In the Philippines, CBRE has established its presence in the early 90s and has emerged as the leading real estate service provider through its comprehensive portfolio of offerings: global corporate services, commercial office leasing, BPO/ call center solutions, residential sales & leasing, research & consultancy, valuation and advisory, capital markets, and asset services.