Property prices in the Philippines are recovering due to overseas workers sending money home to buy houses. Prices had dropped since the economic downturn leading many to see an opportunity for a bargain; this has caught many industry specialists unawares as no one expected such a fast rebound. While property sales in 2008 and 2009 totalled P100 billion, this figure is expected to triple this year as rising demand increases prices.
About 10% of the population work abroad and the money they send home is equal to more than 10% of the annual GDP. This percentage is set to increase as more and more Filipinos are securing higher paid jobs in the media, engineering and medicine. The money they earn abroad can secure them a middle-class lifestyle at home, but the salaries in the Philippines are currently much lower than those that can be earned by working abroad.
How much longer this will continue remains to be seen as the demand for luxury homes in the Philippines is increasing as the Asian Pacific economy continues to boom. One of the top places to buy homes in the Philippines is Makati as many multinational corporations based here leading to strong rental returns. The close proximity of all amenities combined with safe neighbourhoods has made this area extremely popular.
The economy here is thought to have grown by 7% in 2010, with last year's peaceful elections boosting investor confidence. The sound economic platform combined with low interest rates and an expected ratings upgrade by the international agencies is beginning to attract a lot of foreign investment.
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