There is this impression that Metro Manila is the center of trade and business in the Philippines. Technically, this is correct as this is the capital of our country. That’s why Filipinos from provincial areas especially those belonging from low to middle income class aspire to move in Manila to have better access to opportunities. However, the local economic growth in the Philippines is not focused anymore on Metro Manila so the access to opportunities are slowly becoming equitable for every Filipino. The expansions outside the region of Manila is understandable as the area became congested over the years. This made it hard for venturers to open new businesses or expand their operations because of the steep competition. Companies understand that the stricter the competition, the harder it is to grow your business.
Perhaps, the business expansion happening outside Metro Manila is a good news for people living outside the region. Currently, we are seeing development on transportation systems and the growing real estate industry in the nearby areas. Anyhow, the biggest question would be, are businesses gradually shifting their developments in other areas and not only focusing on the capital city of the country? If this is the case, this is a good opportunity for investors especially those wanting to invest in real estate. Since a lot of areas are getting its limelight on these decentralized developments, learning to spot a city that has an emerging growth is helpful to be one of the first people to take advantage of the most favorable investment situation. With this, it is better to know some simple yet useful tips to spot economic growth in a city.
Tips to Spot Economic Growth in a City
Tall buildings? A busy and fast paced living? A vast number and varying job opportunities? These are the images we often imagine when thinking of a well-developed city or emerging city. Clearly, these are evidences of growth but during the first stages, these may not be seen right away. Thus, researching and keeping up with the news is important to keep track on the developments happening in different parts of the Philippines.
If you are not wealthy enough, filling yourself with knowledge is the first step towards success. So, if you aspire to have a better career or waiting for your big break, the first knowledge to keep in mind is you should not consider starting and building your life in developed cities. This might not be the best decision for you as the cost of living is too high and real estate pricing had skyrocketed.
With this, you might ask, “does this mean it is better to build my future in less developed cities?” This is the best case and most practical decision to make but there is a twist! You must spot a city that has big potential to grow. Several cities are emerging right now because big companies are expanding their operations in these locations. Hence, if you are an investor or you are just one of the working populace who is hoping to have better opportunities, learning some tips to spot economic growth in a city might surely help you with making the best and most practical relocation and investment decision. Without further ado, here are some signs that you should look for when evaluating the economic progress of an area.
1. Potential for Creation of Job or Livelihood Opportunities
A city is considered emerging if big companies are starting to invest in the area because one of the primary factors for a city to grow is through trade and commerce. This first entrant serves as a role model or guinea pig of other business to test if the area is profitable for expansion. If a well-known company decides to expand its operations in an area, other corporations take the risk as well. This is a win-win situation as these expansions provide opportunities on less developed cities to initiate its growth and give the locals of the city an access to better career opportunities without relocating to Metro Manila. On the side of companies, they can avoid the economic and financial impact brought by the congestion of Manila.
The big and in-demand sectors like business process outsourcing (BPO) and information technology (IT) are the ones spearheading the expansion of business in developing areas like Lipa City, Naga City, Sta. Rosa, and Laoag. This fast and aggressive expansion gives income to the local government of the city which in return, helps the locals enjoy bigger government projects which will open them to new opportunities and convenience in their daily living.
Aside from the expansion by these sectors and its labor demand, it also has impact on the creation of livelihood opportunities for the people. Apparently, there are people who prefer to start small businesses that will thrive rather than looking for a corporate job. With sectors starting to expand in these areas, it opens opportunities for aspiring entrepreneurs to start new ventures which are helpful in answering the needs of the employees and its growing population. If these succeeds, the financial stability aimed by the potential business venturers will be attained yet the needs of the residents and professionals in the area are satisfied as well.
2. Good Governance and Visionary Leadership
Good governance and visionary leadership attract investors because leaders exhibiting these styles of administering the city are hungry for the growth of their area of jurisdiction. With these attributes, you are assured that public good comes first. Just like the people, companies consider the leadership style of the city mayor to evaluate if their businesses will be secured and if there are plans for further development of the city which will be seen as profitable in case that their investment will be finalized. The visions and plans of the local government unit to grow is a huge factor for big corporations. Take for example the city of Pasig. Its mayor is acknowledged as one of the best mayors in terms of transparency and anti-corrupt practices. With this, the city of Pasig continues to transition from becoming a residential area to a business hub as well. Another example is Davao, it is known in the world as one of the cities with low crime rate so it is attractive for investors knowing that their businesses would be safeguarded from criminal acts.
3. Efficient Land Use
By efficient land use, the government continues to make effective use of its land through development of transportation systems to eliminate lags in the production chains. Currently, the “Build, Build, Build” program is the latest project that exhibits the efficient use of land area of different cities in our country. In this way, it decentralizes the focus of economic developments from Metro Manila to other areas because of the ease of access brought by the infrastructure developments to aid the decongestion plan in the region of Metro Manila. In fact, it is evident that the nearby areas of the Metro Manila like the CALABARZON region is seeing its development as companies are starting to expand its operations in these areas along with the infrastructure developments initiated by our national government. Transportation is made easier in these emerging cities because of the recently developed roads, highways, and expressways.
4. Good Urban Planning
Perhaps, this is the most important aspect to consider if there aren’t enough evidence of development in an area. This is also tied with good governance because this needs a visionary leadership from the local government unit to initiate its development. If there is a good urban plan and it has already been approved, it is highly probable that the city will emerge in no time. Urbanization is important for investors because an undeveloped city will only cause lags in the operations of the businesses thus investments will not profit over time. An urban plan will provide a system in the city for a more effective business operation for the companies planning to expand in the emerging city.
Additionally, the local government has a firsthand experience on the needs of their area so this governing authority is the key for planning and initiating its city development. A good urban planning is evidenced by gradual opening of different industries in the city and its accessibility through transportation is being improved over time. Urban planning should include the establishment of residential zones because it is expected that population will grow along with the economic progress that will be experience in the city.
5. Growing Real Estate Industry
This might be the most obvious tip to spot economic growth in a city. If real estate developments are happening in the area, it is more likely that the urban development is progressing rapidly. If an area is slowly transitioning to becoming an economic hub, residential demand rises so the real estate industry grows rapidly because a lot of people and businesses are taking risk for better opportunities and grow along with the urbanization of the area.
As a matter of fact, Bria Homes is one of the newest yet reliable real estate developers in the Philippines who envisions to grow along with the development of different cities. In fact, it continues to build and market affordable house and lots to the public to let them have a chance to access these opportunities. It is important to have to be one of the first to invest in real estate as a normal person to take the advantage of lower property prices because when an area becomes fully developed, property prices inflate as well making it unaffordable for the working class. So, if you are planning to invest in real estate, it is a must to check our offers. We offer flexible financing terms through bank housing loan or Pag-IBIG housing loan. For more questions, you may contact us through our Facebook page.
Spotting Economic Growth in a City is a Must
Learning these tips to spot economic growth in a city may open you to new life breakthroughs and an opportunity to experience a more convenient life. Yes, Metro Manila is very established and offers a vast number of career opportunities but looking at how congested it is along with the continuous expansion of businesses in different cities, it is better to have a long-term vision in planning your life. By long-term vision, it means that you are trying to choose and make the wisest decision with your life situation. We believe that one of the biggest long-term decision to make in life is thinking of where to buy a house to serve as your residence. Normally, this residence should be accessible for opportunities and not just for the sake of shelter needs. If you have the financial capacity and knowledge on how to spot local economic growth in the Philippines, you would probably make best investment decision in your life which will not only benefit your career but also your future family if you are planning to have one someday.