Tourism, offshore property investors and local real estate developers are driving the property market in the Philippines to the top of real estate investors list. Even after financial markets proved global economic downturn this year, investors see a shift in 2009 in the Philippines to more traditional investments such as real estate. Foreign investors are looking at the positive effects of the stable Philippine peso, the BPO boom, increasing tourist arrivals and the investment opportunities in tourism and real estate which remains high in the country. Because of these many foreign investors see the Philippine real estate market a safe bet for investment.

According to World Bank’s quarterly report - the Philippines is in a better position to weather the uncertainties brought by the recent global slowdown because of the fiscal and other reforms the country has undertaken in the last several years. The report showed a strong performance in private investments and construction, better-than-expected crop harvests, higher production in manufacturing and continued remittances from the eight million Filipinos working overseas - all of which contributes to the surviving real estate market of the Philippines.

Real Estate investors in the Philippines prided that the collapse of real-estate markets in the US and Europe that are triggered by financial disaster will not happen in the Philippines. The reason for the country’s continued steadiness is because of some fundamentals of the Philippine economy namely:

1. The Philippine’s conservative banking system remains stable. Local banks with investments in US and other highly speculative financial concoctions are very minimal. Although the country will be affected by the current global situation the hit will be limited to a certain extent.

2. The 8 million Overseas Filipino Workers’ remitting more than 1 Billion dollars every month continues to power the consumer-driven economy in good or bad times.

3. The slight weakening of the peso against the dollar comes at a time of rapidly declining oil and energy prices, thus curbing any rise in fuel import costs while boosting the price-competitiveness of the country’s exports.

4. Improvements in government tax, tax collection efficiency and with some help from the 12 percent EVAT, keep the country’s fiscal position healthy.

The Philippine real estate market owes its endurance in the present global economic meltdown to the country’s safety nets for installment sales; conservative banking system for adhering sound policies that limits exposure to high-risk ventures thus minimizing the banks non-performing loans and assets; to the government’s commitment to continue stimulating and pump-priming the economy while keeping inflation in check. All these amount to the continued rise in real estate, housing and construction projects in the Philippines today.