Industrial Property Statistics in the Philippines
When investors seek out industrial properties for sale, they should be aware that there are many types of commercial real estate. The most popular sector in the Philippines is retail, and it accounts for more than 75% of all CRE transactions according to a recent study by CB Richard Ellis (CBRE). Industrial properties account for less than 5% of all CRE transactions.
In terms of industrial property investment growth, the Philippines has been a relatively small player when compared with other countries in Asia-Pacific. In fact, CBRE reports that industrial property investment growth in the Philippines is currently lagging behind other APAC countries such as China, Thailand and India. Still, industrial property sector performance remains especially strong in comparison with other sectors of the CRE industry.
Industrial property transaction values in the Philippines grew by more than 18% year-on-year to US$101 million during the first half of 2010, while investment volume growth has remained strong throughout the decade, increasing from approximately US$77 million in 1999 to approximately US$230 million in 2009.
While it is clear that the Philippines has significant room to grow as an industrial property market, many argue that this can only happen if more modern and efficient buildings are available. Supply of such buildings remains very low in the country due to legal restrictions on converting agricultural land into commercial or residential property.
This means that investors seeking out industrial properties for sale will need to be prepared to renovate older buildings that provide little in terms of efficiency or aesthetics.
Investing in an industrial property for sale is not the same as investing in commercial real estate, especially when you factor in renovation costs. It's important for investors to know where their money is going and what exactly they are getting when they spend a significant sum of money on a property.
Industrial properties in the Philippines offer a variety of benefits for investors, but it can be difficult to find space that meets your needs and is ready for tenants immediately. Investors should be prepared to put in a lot of time and money if they want to invest in industrial property for sale.
It is important to note that there are many other types of commercial real estate in the Philippines. Retail is still the most popular sector by far, accounting for more than 75% of all CRE transactions according to a recent study by CB Richard Ellis (CBRE). Industrial properties account for less than 5% of all transactions in the country.
Industrial property investment growth in the Philippines lags behind other APAC countries such as China, Thailand and India. Still, industrial property sector performance remains impressive in comparison with other segments of the industry. Industrial property transaction values increased by more than 18% year-on-year to US$101 million during the first half of 2010, while investment volume growth has remained strong throughout the decade, increasing from approximately US$77 million in 1999 to approximately US$230 million in 2009.
Supply of modern and efficient buildings remains very low, though this can be expected to change somewhat due to legal reforms making it easier for investors to convert agricultural land into commercial or residential property. This means that potential industrial properties for sale will likely need to be renovated.
It is important for investors seeking industrial properties to know where their money is going and what exactly they are getting when they spend a significant sum of money on a property. Investing in an industrial property for sale should not be the same as purchasing other commercial real estate, especially when renovation costs are taken into account. Investors should be prepared to put in a lot of time and money if they want their industrial property for sale to live up to their expectations. There are many other types of commercial real estate in the Philippines, so investors should know what they're buying before spending big money on industrial property for sale. Retail is still the most popular sector by far, accounting for more than 75% of all CRE transactions according to a recent study by CB Richard Ellis (CBRE). Industrial properties account for less than 5% of all transactions in the country.
Industrial property investment growth lags behind other APAC countries, such as China, Thailand and India, but it still remains impressive in comparison with other segments of the industry. Industrial property transaction values increased by more than 18% year-on-year to US$101 million during the first half of 2010, while investment volume growth has remained strong throughout the decade, increasing from approximately US$77 million in 1999 to approximately US$230 million in 2009. Supply of modern and efficient buildings remains very low due to legal reforms making it easier for investors to convert agricultural land into commercial or residential property. This means that potential industrial properties for sale will likely need to be renovated.
As with any investment, careful research is essential before taking the leap into buying an industrial property in the Philippines. Investors should have a clear idea of what they are getting themselves into. However, the rewards can be significant - particularly for those who are looking specifically to lease industrial space. The Philippines is one of the fastest-growing economies in Asia, with annual GDP growth currently at 7%.
Industrial property transactions have seen an average annual increase of more than 12% over the past ten years. This makes it clear that there is a strong business case for investment in industrial properties. However, it is important to know what specific type of industrial property will suit an investor's requirements before buying the first one available.
