The country’s residential and non-residential buildings sector will grow by an average of 9.3 percent annually from 2019 to 2028, a Fitch unit said on Thursday.
“The residential buildings sector will be an outperformer, given rapid urbanisation and the urgent need to provide affordable housing,” Fitch Solutions said in a report.
Fitch Solutions said drivers of growth in the sector include the creation of a unified authority handling housing issues and the anticipated increase in demand for commercial office space, with the country flourishing as an outsourcing destination.
“We are positive on growth of the Philippines’ residential buildings sector over our 10-year forecast period. The sector is expected to expand by 10.4 percent in real terms in 2019, and at an annual average of 8.9 percent through 2028,” it said.
“A fast urbanizing population in the country will bolster demand for housing in the long-term, and we believe demand will be stronger in large cities such as Metro Manila, Davao City and Cebu City. These are cities that have experienced an influx of rural population over the past decade, and have suffered from various episodes of housing crisis, largely as a consequence of a low supply of affordable housing,” it added.
Fitch Solutions said that over the next decade, a stronger political will address the “chronic housing shortage faced by the country.”
President Duterte earlier signed a bill that would consolidate the Housing and Urban Development Coordinating Council and the Housing and Land Use Regulatory Board into the newly created Department of Human Settlements and Urban Development (DHSUD), which would greatly reduce bureaucratic red tape, align policy making and speed up administrative processes.
While the DHSUD has since encountered budgetary issues, Fitch Solutions said it was positive that such issues will be ironed out in the long run and aid in the provision of affordable housing for the population.