Investing in Makati City, Philippines

[Sylvia Randal]

I've read that real estate development is growing in the Philippines, especially in condominiums.  The economy has risen and the property market continues to rise, at a slow pace.

Can anyone share their advice on purchases for condos in Makati City?

best regards,

Sylvia

[Arlen Chou]

@Sylvia Randal just ran across your post when I was looking for info on condominiums.  I was just wondering if you ended up getting into a condo in Makati.  I am assuming you were planning on doing this as an appreciation play.

I have a factory in South of Manila in a place called Santa Rosa.  I have been traveling to Manila 7 to 10 times a year for the past 8 years.  The areas that @Melissa Oostendorp is talking about have been blowing up for years now.  The buildings are very nice and the finishes are as nice as anything you would find state side.  Also the build up in the area called The Fort is very impressive.

Ayala is the go to company there in PI.  The Ayala family practically own half of the land around Metro Manila.

The Philippines has one of the stronger economies in SEA. The call center industry has been shifting away from India and other countries to the Philippines because of the high proficiency of English. Additionally as the tensions rise between ASEAN nations and China over territorial disputes in the South China Seas, I would expect the US military to invited back into the Philippines.

@Andy C.is correct that there are certain areas of Manila that are definitely dangerous and you really need to know the area before investing.  Traffic really does suck, often times worse than LA.  However, areas around The Fort, Greenbelt or Power Plant Mall are filled with expats in the finance industry and getting tenants should not be too hard if you sign up with a good management company.  Also a little south of Manila is a place called Alabang that is blowing up that might have opportunities for condo appreciation.

With that being said, don't invest unless you have people on the ground that you seriously trust.  During my 8 years of starting up, I went through 4 accountants and 3 sales people until I finally found people that I can trust.  That was why I was traveling there so often!  I would not say that you need to speak tagalog, I don't and I was able to start a company there.  Most everybody in Manila speaks English.  Compared to other SEA countries communication is much easier.

Anyway, sorry for the late input but I hope it helps.  Feel free to reach out if you have more questions about the area.

Good luck,

Arlen