Why Invest in Real Estate In the Philippines - Top Cities to Invest In

Why and Which Cities to Invest in the Philippines

You should invest in the Philippines. Here's why. Whether it be in the stock market or real estate, the global market is bullish about investing in the Philippines. Reuters thinks you should. So as Bloomberg and Businessweek. The list goes on. 

Real Estate Property Business in the Philippines: Poised to Rise

Enrique Soriano, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, said: “Five years after the financial crisis triggered by a housing bubble, the global economy is convalescing. The Philippine economy is poised to move up. Real estate markets in all segments will grow. Some developers will fail and others will do better because they have a strategy and they have found exactly the right position.” (Source)

Okay, so you're sold with the idea of investing in the Philippines. Now you're wondering where exactly in the Philippines are the best and perhaps the most livable cities to invest in. When investing, it's important that you put the following factors into serious consideration:

5 Factors to Consider When Investing in Real Estate in the Philippines

1. Accessibility

Whether you're investing in the place for your retirement or simply for business, it's important that the place you will be investing in is easily accessible. You wouldn't want to be stuck in an island that doesn't have proper transportation system.

2. Technology (Especially Electricity)

While most cities in the Philippines have access to electricity (especially Manila), there are smaller cities which have issues with their electricity system. Be sure to check whether the place you're planning to invest in has a good and affordable one.

3. Safety

No matter how paradisiacal a place may be and it's not safe, by all means, stay away from it! It's not worth it.

4. Business-friendly

No one wants to invest in a place where you couldn't make money in the long run. Check whether there's a potential to start up a business in the area or to sold the property for a higher price. You may want to check out the World Bank: Doing Business Index that measures which cities in the Philippines ranks well as the best cities to easily start a business in. General Santos is currently on top of the list (as of  writing, 2013).

5. Livable 

When a place is livable, it's profitable. Check out this list of the top 20 liveable cities in the Philippines.

Top Best Cities to Invest in the Philippines

Now for the top cities that you must invest in. Once done considering those factors mentioned above, it's time to decide where exactly in the Philippines should you invest in? The Business Processing Association Philippines, shared the "Next Wave Cities™”, a joint project undertaken with the Commission on Information & Communications Technology and the Department of Trade & Industry. 

It is an annual report on the best locations for information technology and business process outsourcing (IT-BPO) in the Philippines. While most investors automatically set to Metro Manila and Cebu for their investments, the list highlights some other cities which are worth considering when you're planning to invest in less-crowded cities in the Philippines. 

Iloilo as the Most cost-efficient city to invest in and 3rd among the "Next Wave Cities" in the Philippines.

1. Metro Laguna: Best place for IT-BPO operations outside Metro Manila and Metro Cebu
2. Metro Cavite: Emerging urban center outside Metro Manila
3. Iloilo City: Most cost-efficient city
4. Davao City: More than a million people
5. Bacolod City: Best business environment
6. Metro Pampanga: Best infrastructure
7. Bulacan East and West: Manila’s northern neighbors—untapped centers between bustling hubs
8. Cagayan de Oro City: Most cost-competitive city
9. Lipa City: Proven host with potential for growth

The graph below shows which cities in the Philippines have the absorptive capacity and enough manpower or skilled employees - two important factors to consider when looking to start a business in a city. 

The Information and Communications Technology Office has released their updated Next Wave Citiest 2012 Report (Source) and below are the list of cities that made it to the top 10. 

1. Davao City,

2. Santa Rosa City,

3. Bacolod City,

4. Iloilo City,

5. Metro Cavite (Bacoor, Dasmariñas City, Imus)

6. Lipa City,

7. Cagayan de Oro City,

8. Malolos City,

9. Baguio City,

10. Dumaguete City

The lists above are just guidelines as to which cities in the Philippines the infrastructures and technologies are reasonably priced and considered to be livable cities. You still have to decide on your own depending on your specific preferences as to which among the cities in the Philippines you would want to invest or start a business in.

Should you have any questions, feel free to connect with me on Twitter, Facebook or email me at: jonharules [at] gmail [dot] com.