Image courtesy of PWC

PWCs Emerging Trends in Real Estate 2013 reports that investors will be chief among drivers of this burgeoning economic recovery as they struggle to improve yields, although many will remain frustrated as they achieve only modest gains at best. This will prove especially true in the commercial sector, where “decent though relatively disappointing” job creation, together with limited inventory, should bolster absorption and consequently reduce vacancy rates even further, making these kinds of properties more attractive.

This commercial real estate activity will also ripple through to other market segments, including the housing market. Single family home values are expected to inch up across the country as the foreclosure crisis finally comes to a conclusion and investors help to firm up markets by buying up remaining inventory in the hardest hit areas. PWC points to the fact that at some point, the US’s expanding population – amounting to two-to-three million annually – will inevitably lead to more demand for single family homes, and any upsurge here would likely ripple through the rest of the economy. As such, it’s likely that homebuilders will finally begin to see some action, something that we have already seen signs of after years of in activity.

However, Emerging Trends warns that the US real estate industry still has many issues to overcome, such as the inevitable rise in mortgage interest rates expected this year, and resolving ongoing loan-legacy problems in light of the coming wave of maturing commercial mortgage gains expected in the next three years.

Trump Tower Manila is now open - cebuparadiseisland_com @ Flickr.com

Steven Worboys, MD of Experience International says “We’re pleased to be a part of the launch of the Trump name into the Philippines with a $150 million luxury residential skyscraper. Located in the iconic Makati CBD landmark, Century City, this will be the final building in their flagship mixed-use development.”

Experience International is working in conjunction with Century Properties which is the Philippines largest privately owned real estate company, to launch the first Trump branded residential condominium in the Philippines. The building is located in the Makati Central Business District which is home to a number of high-end condominiums that have already proven to be popular with both locals and expats. Century City is close to the capital’s financial center which is highly relevant as a number of businesses have chosen to expand to the Philippines during the last three years, leading to considerable growth in the expatriate population. The Philippines is now a world leader in business process outsourcing and has overtaken India, leading to increased demand for rental property, particularly in Makati.

The Filipino economy has proved to be particularly strong and resilient during the recent economic downturn, and this is attracting investors from throughout the world. In 2010 it achieved its highest rate of GDP growth for 34 years at 7.4%, and has recorded 51 consecutive quarters of economic growth. It is well placed to become even stronger, and is regarded as being one of the safest and most up-and-coming investment markets in the region.

A recent report by PricewaterhouseCoopers named Manila as being the second wealthiest metropolis in south-east Asia.