MANILA, Philippines – The booming real estate industry in the Philippines is in danger of losing steam if no actions are done immediately to solve infrastructure and connectivity issues, real estate services firm KMC MAG Group said.
KMC MAG Group managing director Michael McCullough said while the Philippines offers a lot of advantages to investors, poor infrastructure and connectivity remain as its drawbacks.
“Low rental costs can bring investors into the Philippines, but the quality of the infrastructure and the limitations in connectivity can keep the Philippines from sustaining and even improving on its growth,” he said.
McCullough said the government should pay extra attention to these two issues as these can dictate the country’s future economic growth and its attractiveness to foreign investors.
“The government cannot afford to have these issues further impact the ease of doing business and the quality of life. For the Philippines to be able to compete with the rest of Southeast Asia and the rest of the region, it will have to make transportation and communication easier across the islands and ensure that this experience is consistent throughout the country,” he said.
If such issues are not addressed, McCullough warned other markets may “find a way to take up the slack, making the rest of the country’s advantages irrelevant.”
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Without these issues, KMC MAG Group said the Philippine real estate industry is set to continue on its positive trajectory on the back of its stable economy.
The real estate services firm said the industry recently recorded a record-high quarter for transaction volumes at about $505 million driven by large-scale land deals.
“These major transactions have confirmed that strong economic policies and a stable political environment will sustain the real estate industry.