Most travel guides and individual travelers consider Philippines as a problematic country. Some years ago European research center has called the country the most disaster-prone place on earth. The reason for this unpleasant top-position is the bad weather, the frequent earthquakes and volcanic activity, as well as the religious and ethnic military conflicts in some not so remote parts of the country. To add to these problems, the government isn't allowing all foreigners unrestricted property rights. Despite all these difficulties, the country still attracts many foreigners.

In terms of property prices Philippines are situated in the middle of the scale compared to other island countries in Fareast Asia. Although the upper class properties surpass the $50,000 mark, many nice and brand new apartments in the capital city of Manila and even houses in other prime places can be found for no more than $20-25,000. The rental properties are also relatively affordable, with the upper segment surpassing $700-800 per month, but with most residential properties rented for $500 or less.

The big problem regarding the real estate market in the country are neither the prices nor the fact that third of the year from May to September the country of more than 7,000 islands is attacked by severe typhoons. The main obstacle before the foreigners who try to settle down is put by the government. Foreigners aren't allowed to own property, at least aren't allowed to own the majority stakes in any kind of property. The land the residence is built upon also cannot be owned by foreigners even if they have special Resident/Retiree's Visa (SRRV). This visa holders although can buy condominiums or townhouses. Former citizens of the Philippines cannot buy land in excess of certain amount.

The solutions to these problems look a bit strange for some. They imply marrying Philippines' citizens who officially hold the property titles or hold the majority stakes or at least hold equal stakes with the foreigners. The major drawbacks are that such "arrangement" being strictly informal may create legal problems for the foreigners in case of divorce or death of the Philippine spouse. The divorce isn't allowed in the Philippines but technically speaking it may be done in many countries the foreign spouses come from. Many experts suggest enhancing the marriage with additional contract on the use of property in case of such events. To qualify for SRRV Visa the foreigners need to be older than 35 and to meet depositary requirements, in most cases between $50,000 and $75,000 for the principle applicant. For these visa holders the marriage to Philippines' citizen isn't a necessary step in order to buy a property.

Country profile:

• Area: 300,000 sq km
• Population: 87.9 million (July 2005 est.)
• Population growth rate: 1.84% (2005 est.)
• Net migration rate: -1.49 migrant(s)/1,000 population (2005 est.)
• Life expectancy at birth: 69.91 years
• Total fertility rate: 3.16 children born/woman (2005 est.)
• GDP per capita: purchasing power parity $5,000 (2004 est.)
• Distribution of family income (Gini index): 46.6 (2003)
• Main trading partners: U.S., Japan, China, Singapore, Hong Kong.
• Internet users: 3.5 million (2002)

(Source: CIA - World Factbook 2005)

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See also the directory of companies providing real estate services in, and general real estate information of Philippines.