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OFW remittances, BPOs, tourism fuel Cebu’s real estate boom (Yearender)
By Eddie Barrita

Rising remittances from overseas Filipino workers (OFWs) and the burgeoning business process outsourcing (BPO) and tourism sectors in Cebu are fueling a boom in Cebu’s real estate industry.

”Growth in Cebu’s real estate industry continued as is evident in the number of construction projects in the city,” said Cebu Holdings Inc. (CHI) president Francis Monera.

He cited the accelerated development within the Ayala-owned Cebu Park District, which includes the Cebu Business Park and Cebu IT Park.

CHI, which runs the Cebu Park District, is an Ayala subsidiary.

Monera said construction in Cebu has become more dynamic and diversified.

”This reflects the increasing number of condominium units, which is expected to grow by 74 percent to over 5,000 units to complete in 2011, together with an expanding office space that may reach some 460,000 square meters of usable area or 15 percent more than in 2010 in Cebu,” Monera said.

Philippine Association of Realtors Board Inc. – Cebu Realtors Board Inc. (Pareb-Cereb) president Antonina Fritzche credited the growth of the industry to BPOs, foreign students like Koreans learning English in Cebu, foreign retirees, Cebu’s warmer climate, surge of overseas remittances and increased purchasing power.

OFW remittances went up by seven percent to USD16.534 billion in the first 10 months of the year from USD15.456 billion in the same period last year, according to the Banko Sentral ng Pilipinas.

Attractive financing schemes also boosted the housing sector.

According to Rizal Commercial Banking Corp. first senior vice president and RBG deputy group head for VisMin sales Prudencio Gesta, lending activities this year increased because of the low interest environment. Car and home loans are also on the rise.

The Pag-ibig Cebu branch, meanwhile, reported releasing P688 million as of November this year to finance the home loan applications of 776 borrowers.

Pag-ibig estimated 70 percent of these home loans are for house and lot, 15 percent for lot only, and five percent for condominiums.

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