The New Fueling Boom; Driving Real Estate Market

17 Apr

With millions of people in a certain country not all are given good opportunity to have a stable job and stay on their beloved native land. Majority of them are force to work to other countries even if it’s hard for them to leave their love ones.  Life of becoming an overseas worker is tough, as they risk battling the outside world with their bare hands and unfortunately some may not have that full assurance of becoming a successful worker. Some of them may lose fortune and turn into slave victims on their cruel employer and instantly their life becomes chaotic.

Despite all this possible negativity on becoming an overseas worker, some race still track on becoming one and the Filipino race is one of them. Yes, the Philippines is one the famous diasporas of overseas workers in different countries or simply they are called “OFW’s” or Overseas Filipino workers. They are considered one of the greatest financial contributors in Philippine economy. They simply turn their billions of dollars (their earnings) into remittances every year which gives them portal to possess great purchasing power. OFW’s plays a special role in driving market force, from this moment the most important investment sources for the Philippines are not actually locally based but rather coming from the remittances of heroic Filipino workers abroad.

With this stunning moment, major players in business sectors see bright opportunity of engaging Filipino workers abroad on their line of business. Now, what line of business thrives and grabs better attention on the eyes of these workers? For sure a lot of business wanted to acquire this kind of investment, but the thing workers abroad certainly look for in a business is that it would give them long-term benefits. In line with this, the Philippine real estate industry favorably gains popularity on this booming market. Now this leaves a challenge on big names of real estate developers on how to encourage OFW’s to invest in their properties and services offered that truly gives satisfaction. All these developers now must see the need to base themselves outside the country to spread their featured services. They must now come up with innovative strategy on how to market their services offered on their target market. Studies reveal that two most effective strategy that real estate developers used in marketing their products to overseas workers are word of mouth strategy also dubbed as ‘cold calling’ and the other one is through internet marketing.

Property developers should also consider answering the big question in mind of these workers that is, where to put their savings. In short they must provide that vehicle for these workers to invest. Indeed, there are lots of real estate properties where workers abroad choose with, few of them come into condominiums, townhouses even house and lot and other related real estate property. With this kind of investment they can earn money through rental payments as they rent out their purchase properties as housing demand in the Philippines continuous to flourish. They will also have a choice of solely owning the property to give their family a comfortable home setting.

Below is a graph showing OFW remittances in the 4th quarter of year 2011

Despite the weak global growth outlook due to uncertainties, the Philippine economy is expected to remain sound this year albeit growing at a slower pace of 3.5 – 4.0% as forecast by most multilateral financial institutions. Currently, macroeconomic fundamentals remain strong.

Overseas Filipino Remittances increased to US$18.3 billion up 7% from January to November of last year. The inflation rate remains stable and has settled at 4.8% while lending rates ended at an average of 6.4% in December 2011.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: