Thursday, January 15, 2009 Real estate investments up
INVESTMENTS in the real estate industry increased last year, overtaking the agriculture sector, which ranked second in 2007 next to the wholesale and retail sector, the Securities and Exchange Commission (SEC) reported.
"The interest of foreign investors in investing in real estate last year pushed the same sector to be an industry of choice with a paid-up capital of P43.4 million in 2008," Javey Paul Francisco, SEC Davao director, told reporters Wednesday.
He said 98 new companies registered with SEC Davao last year under the real estate industry.
"Many investments for the industry are also coming in and we see that the industry will grow since foreign interest in owning condominiums and retirement homes has also increased," he said.
Francisco said investments in real estate ranked third in 2007. The wholesale and retail sector topped, followed by the agriculture sector during the same year. He explained that in 2007, there were large investments in agriculture, particularly in the banana group.
"Last year, real estate investments increased (making second on the list next to the wholesale and retail sector). The growth is not only brought by foreigners but also local investors who develop resorts in Samal," he said. "Despite the economic downturn in other parts of the world, investors still saw the potentials that we have here in Davao; the economic fundamentals are stable and there is peace and order."
He, however, failed to reveal how much the investment growth recorded for real estate was.
Francisco said SEC Davao could still not forecast how much SEC would get with new projects in real estate this year.
He added they have no target number of investments this year. He said it would be difficult to speculate considering "economists have said the effect of the financial turmoil will be fully felt by the second and third quarters this year." (JGRS)
