The continuous rise of condominium buildings in Metro Manila gives us an idea of the existing demand to this type of investment. Real estate developers are still maximizing the available space in Quezon City, Makati City and lately in Taguig due to the appreciation in property prices in these parts of the Philippines.

The confidence on the real estate sector in the Philippines is reflected in the 5.9% year-on-year growth rate from 2006-2007 of ownership dwellings and real estate, which contribute to the gross domestic product of the country. The growth was attributed to the increase sales in residential houses. The growth in the sector is largely attributed to the demand which comes from overseas Filipino workers all over the world.

The real estate sector is driven by the demand of the OFWs, who continue to invest their hard-earned money abroad to this sector. On the average, about 30% of the income of OFWs is allocated on housing, whether to purchase a new house, renovate present homes or pay the rent. With OFW remittances reaching the $15 billion mark, just imagine how much could be invested in the sector.

According to Colliers International, residential prices in prime areas in Manila rose by an average of 15.2% from only 9.6% appreciation in 2006, and 10.9% in 2005. It should be noted that the sector was badly hit by the Asian financial crisis in 1997 which caused property prices to drop significantly. The real estate sector was cited as one of the major causes of the crisis due to the huge amount of loans extended by the banks to the sector. The sector was able to gain its momentum to recover in 2004 only.

Aside from the demand coming from the OFWs, the sector also gained from the booming business process outsourcing (BPO) industry. This industry provided the demand for office spaces in the metro which prompted the decline of vacancy rates.

Also, it should be noted that the current real estate development is not only located in Metro Manila but also in nearby areas like Laguna, Cavite, Pampanga and big cities like Cebu, Davao and Iloilo. This gives us a better picture of the improving confidence in the sector.

Given the encouraging state of the real estate sector in the Philippines, even the average income earner should now take that first step to buy that dream property. The prospects are good and flexible terms of payments are available to help you manage your cash flow. It only takes that first step and you're nearing to making that dream a reality.