Manila, Cebu are hot retail destinations CBRE Report

The Philippines has made it to the top in the list of countries with active retail market with the cities Manila and Cebu in the list as top city real investment prospects, a survey said.

A recent study conducted by the Urban Land Institute and PricewaterhouseCoopers titled “Emerging Trends in Real Estate Asia Pacific” showed Manila ranking fourth out of 23 Asian cities for city investment prospects, putting it high on the list of investors. Cebu is likewise gaining interest with the expansion and openings of upcoming malls.

CBRE Global Research also said the Philippines is among the countries with an active retail market and current appeal to investors—one of the most viable destinations that retailers from Europe, the Americas, and Asia Pacific are looking into given their large-scale, cross-border expansions.

CBRE said that in a survey conducted with more than 130 global retailers, the Philippines ranked 28th out of 58 in the global list of top target markets for 2014. Asian retailers likewise showed significant potential in their own region, with the Philippines ranking 8th in the top 10 target markets.

“Right now, robust retail activity can be seen in Manila and Cebu – two of the most progressive cities in the Philippines. The maturity of the market in these areas is what retailers are going for,” said Rick Santos, CBRE Philippines CEO, chairman and founder.

The consumption-driven economy and increase in purchasing power of the population have encouraged the expansion of international retailers. Cebu, in particular, is awaiting the opening of SM Seaside City—a high profile, 496,000-sqm lifestyle destination envisioned to be the fourth largest shopping mall in the world.

Ayala Center Cebu, SM City Cebu, and other Grade A malls in the area are also expanding and welcoming a variety of global brands, from luxury houses such as Gucci to high street fashion like Gap, Superdry, Onitsuka Tiger, Yves Rocher, and even specialty lifestyle brands like Muji.

Metro Manila, meanwhile, is gearing up for the opening of several community shopping centers, including Ayala Fairview Terraces, Century City Mall, and Blue Bay Walk.

With the increase in OFW remittances and BPO (business process outsourcing) revenues, retail developers are increasingly focusing on the potential of these market segments. (Bernie Magkilat)

Ref: http://www.mb.com.ph/manila-cebu-are-hot-retail-destinations/