Construction and infrastructure will have the biggest impact on the road to recovery for the country this year.
This was disclosed by Bureau of Investments (BOI) Officer-in-Charge for International Investment Promotion Lanie Dormiendo, during the online PRIME Radar: Real Estate Wrap-up and 2021 Forecasts Webinar held recently.
Dormiendo said that for 2020, construction or infrastructure is the sector with the highest approved investments of P556.3 billion or 56% of the total investments approved by BOI.
This was followed by electricity, gas, steam, and air conditioning supply at P199.2 billion or 20%, transportation, and storage with P161.6 billion investments or 16%, real estate at P32.54 billion or 3.3% and the water supply, sewerage, waste management and remediation at P27 billion or 2.7%.
These projects, once fully operational, are expected to power the country towards economic recovery for 2021 and beyond.
Architect Jun Palafox of Palafox and Associates, important resource people, meanwhile, highlighted the use of green urbanism in several of his existing projects like Clark Aerotropolis, Pampanga Megalopis, and Metro Davao, as new urban growth centers to decongest the National Capital Region.
Green urbanism, according to Palafox, gives importance to walkability, bikeability, and easier access to public transport in these areas.
“By adopting this standard, communities, and cities can enhance traffic safety, promote efficient movement for all modes of transport, and support environmental sustainability,” Palafox explained.
Cholo Florencio, VP of PRIME, in its 2020 report and 2021 outlook, stated that 2021 will be the year of decentralization with the implementation of the hub and spoke model as the office sector continues to expand along with the emergence of horizontal housing in the provinces and cities will sustain demand and sales performance. He also said that raw and land acquisition in provinces will increase in 2021.
The PRIME report noted that demand for warehouses was boosted by the e-commerce boom in 2020. Logistics companies comprised nearly 90% of urgent industrial demand. Investors are already considering diversifying into industrial development as the sector remains resilient amidst the pandemic.
“The residential sector was mostly undeterred by the pandemic in 2020 as 92% of developers recorded improved or similar sales, compared to 2019.
These developers remain bullish for 2021 as they continue to plan new projects or source new properties to acquire for development. The retail sector is expected to proceed with caution as select brands had issues maintaining sales and operations within existing locations. Unless malls reopen and relax restrictions, brands are likely to decrease their expansion targets due to low-foot traffic and consumer spending,” the report said.