Swot Analysis Of Real Estate Industry

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II. Industry Structure According to the study of Industry done by De Guzman and Tribunsan, the office market remains a landlord’s domain. Given the very high demand, lease rates have been increasing slightly in recent months. The abrupt occupancy for office space and issues on the overdue delivery of office buildings because of lack of skilled workers has relieved concerns on softening rents. Most of the leasing activities are held up in Makati City. According to the study mentioned above, “monthly rental fees per square meter for Premium Grade A, Grade A and Grade B&C buildings average at P1,350, P915 and P715, respectively. Since real-estate firms are trying to meet the strong demand with new stock, total rents remain the same in the fourth…show more content…
These projects provide the wants and needs of consumers of all classes. These needs would be the need for shelter, recreation and growth. Proceeding to completing the project, corporations must first obtain the raw materials either outsourced, manufactured, or via a contractor. According to the study, It was proven that there are situations where expenses of real estate companies would highly accumulate if they decide to manufacture their own materials. That is why; most real estate companies would rather outsource their materials to reduce. Most companies outsource their raw materials not by partnering with several businesses but through a contractor, because tying up with a contractor would lessen their costs, their efforts and time to a certain…show more content…
This is followed Ayala with 17.48% of total investments, Belle Group with 11.78% , Robinsons with 12.10% and Vistaland with a total of 9.86% of total investments. B. Number of Suppliers Based on the study of Annual Survey of Philippine Business and Industry, the real estate industry in the Philippines is the second most engrossed industry in the country with a total of 15, 118 registered realtors. Source: 2014 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities: Final Results by Philippine Statistics Authority Source: 2014 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities: Final Results by Philippine Statistics Authority According to the PSA, real estate industry is recognized to be as the 5th industry in the services sector, which contributes to the growth of GNP. As of 2007, the real estate industry contributed 3% to the total growth of the country’s Gross National Product and is also known to have a growth rate of 5% - 6% per annum. Normally, a real estate company would have numerous suppliers since the project contain different departments and would involve a minimum of 2, 000 workers. Nonetheless, due to budgetary planning and quality control, real estate corporations have recognized contracts with engineering firms, construction firms, and architectural firms, that narrowed the number

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