It is unsurprising that the Philippines' economic growth and real estate prices have appreciated considerably.

The Philippines, located in Southeast Asia, has long been recognized for its deep cultural heritage which sources its roots from both Eastern and Western origins. With a population of over 105 million and 300,000 square kilometers of land, the Philippines has been a hotspot in international tourism with levels growing by 7.7% in 2018 and 11.0% in 2017. 

Given this strong momentum in tourism, favorable demographics, an investment grade credit rating, and a massive infrastructure project underway, it is unsurprising that the Philippines' economic growth and real estate prices have appreciated considerably. The Real Residential Property Index increased by over 9% year-over-year in December 2019.

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The Philippines
Economy The Filipino economy is surging. The World Bank forecasts 2019 GDP growth levels to break at 6.5%. In April 2019, S&P upgraded the Filipino credit rating from BBB to BBB+ with a stable outlook. This growth partially rests on the back of the Philippines' strong demographic mix with a median age of 24.3 years, but is also supported by a massive infrastructure project by the Duterte Administration, which expects to spend USD 180 billion by 2022. Growth has been seen most dominantly in services, which grew by 6.8% and industry, which grew by 6.7%.
Legal While the legal environment in the Philippines has become increasingly favorable to foreign investment, it is important to note that there are still restrictions on foreign land ownership. Foreigners can own condominium units and stakes in condominium corporations of up to no more than a 40% share. Foreign investors can also lease land for up to 50 years.
Regions The Philippines is divided into 17 regions, 81 provinces, and 145 cities. The most attractive real estate markets include those of Metro Manila, Cebu, and Davao, which have all experienced strong upward trajectories. In general, large urban areas have shown the most significant appreciation due to an increasingly young and urbanized population as well as growing demand from expatriates.

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