Industrial, hospitality sectors to gain from extension of foreign land leases

Congress' approval of two separate bills allowing foreigners to lease land in the country for up to 99 years will benefit the industrial and hospitality property markets, a property research and advisory firm said.

- By CATHERINE TALAVERA

"Colliers believes that the measures' approval presents tremendous opportunities for the property sector, especially for industrial and leisure segments," Colliers Philippines director for research Joey Roi Bondoc said in an email.

"With the proposed amendments, we see the Philippines attracting more foreign hospitality and manufacturing players. Extending land lease is crucial as these foreign players bring a lot of capital to the Philippines and extension of lease term is a step in the right direction as they establish profitability and expand footprint across the Philippines. This is important especially as we want to attract more investors going out of China and Taiwan," he added.

The Senate and the House Representatives recently approved Senate Bill 2898 and House Bill 10755, respectively, both of which seek to allow foreigners to lease land up to 99 years from the current 75 years. The measures in both chambers also enable foreign investors to sublease properties.

Bondoc said the enactment of the two measures would ultimately benefit Filipino consumers and investors as more leisure and industrial players should result in improved products and services for the domestic market.