Prospects for the Philippine real estate/construction sector are bullish, with at least 5.2% growth projected in 2007. The sector’s expansion will be largely fuelled by lower interest rates; increasing demand for residential real estate properties for investment or retirement by Filipinos working abroad and Filipino residents of foreign countries; booming call centers/business processing outsourcing industry that creates exponential demand for office space; growing shopping mall development; and strong public sector infrastructure spending.

While the green building concept is still in its infancy in the Philippines, many architects, interior designers and educators are actively discussing green elements. Some private organizations have come together to promote green building, and a Philippine Green Building Council is being formed, with some guidance from the World Building Council. The Filipinos abroad and foreign investors who have expressed interest in Philippine real estate properties are accustomed to international quality and standards as well as green features and seek the same in Philippine properties. This will further drive the market for green building products upwards.

A few projects have showcased efforts to improve energy efficiency, promote conservation, reduce waste, and preserve the natural environment, and some Philippine buildings have been cited in ASEAN Energy Awards. Some U.S. green building products are already successfully sold in the Philippine market. Given certainly cost and environmental constraints, such as rising water and electricity rates, underdeveloped solid waste management and inadequate disposal facilities, green and sustainable design has become a necessity.

This is an excellent time to introduce environmentally friendly building products to the Philippines, as the market is in its developmental stage and firms can reap tremendous benefits by being an early entrant. Best prospects include products and systems designed to promote water conservation, improve energy efficiency, and harness renewable energy. Generally, products and systems that are green, and can also improve a company’s bottom line, will have good prospects in the Philippines.