Construction & Real Estate

From expansion of 18.4% in the last quarter of 2012 to 32% in the first quarter of 2013, the construction industry has shown consistent double-digit growth of late. According to the Philippine Development Plan 2011-16, the government intends to increase infrastructure spending to almost 5% of GDP by 2016. Rapid urbanisation and the pace of construction are likely to add to increasing demand for water, energy, roads, airports, and other transport developments. The outlook for the real estate sector looks positive as demand for quality housing, office and retail space is expected to remain high in step with economic growth. Amidst optimism in the sector, however, there are concerns that increasing property prices could create a bubble and drive up inflation. To some degree, demand-side pressure could be eased as new office and residence projects are completed and more space becomes available throughout the country. This chapter contains interviews with Don H Lee, President, Lafarge Holdings (Philippines); Michael Cosiquien, Chairman & CEO, Megawide Construction Corporation; and Ambassador Amable R Aguiluz V, Chairman, Picar Development.