2024 is shaping to be an exciting year for real estate Philippines with all the advancements surrounding it such as rapid property development, technological progress, changing market trends, and the growing influence of sustainable practices.
In this article, we will take a deep dive into the emerging trends, investment opportunities, and what the future holds for potential buyers and investors.
During the previous year, there were both opportunities and challenges that influenced real estate Philippines. With the worst of the pandemic seemingly over, the industry is in a recovery phase, with buyers and investors cautiously looking to explore what’s out there. This year, several key factors are being projected to influence the market:
- Economic Recovery – The local economy has enjoyed a strong comeback last year and this gave the real estate industry renewed optimism. The enthusiasm for property investments was also buoyed by low interest rates, increased public spending, and support from various government initiatives aimed at urban renewal and infrastructure.
- Urbanization – Continuous property development in major cities such as Manila, Cebu, and Davao are driving the demand for both commercial and residential properties. As more and more people flock towards urban centers, urbanization is highly likely to continue.
- Remote Setup – Buyer preferences has been affected by the growing trend of remote working. A lot of buyers now require flexible living spaces when going through listings to accommodate needs such as home offices, home gyms, and more.
- Sustainable Practices – Environmentally-conscious buyers are now more proactive in using natural materials in sustainable housing that they are impacting the overall design and features of new real estate developments.
Rising Demand
The Philippines continues to experience a rise in demand for real estate opportunities. A market analysis points to the economic growth, new infrastructure, and rapid urbanization in the provinces as the main drivers of this surge in interest in regions like Cebu, Iloilo, and Davao.
The significant growth in Cebu is reportedly due to improved infrastructure, the rise in tourism in the Visayas region, plus its booming business landscape. The accessibility of Cebu aided by the new airport and expressways also makes it a very attractive destination for buyers and investors alike.
In Davao, the economic growth and investment-friendly policies have both contributed to the increase in interest in real estate opportunities.
In Iloilo, the area is fast becoming a real estate hotspot because of the boom in both business and education, making it an appealing choice not just for people from nearby areas, but also from other parts of the archipelago.
The Impact of Infrastructure
Infrastructure development in the Philippines has been experiencing an upward trajectory as of late. Different regions across the country are fast becoming hotspots for real estate investments, thanks to major infrastructure projects that are designed to improve connectivity and accessibility.
As the government’s infrastructure program significantly improved roads, bridges, and transportation networks, property values also increased in the said regions. There is also a hige improvement in quality of life, as residents in these emerging regions find it easier to commute to and from work.
Technology is Taking Over
Advancements in technology is changing everything in the housing market. Nowadays, it is not uncommon for real estate companies to promote virtual tours where buyers can even see a 360-degree view of the property. Websites are also utilizing AI to help buyers find listings that fit their needs and preferences.
Sustainability Trends
A growing trend in the real estate Philippines industry is environmental sustainability. Developers are more conscious in incorporating eco-friendly housing designs and promoting a lifestyle with lesser carbon footprint. That is why sustainability are very prominent in new projects. Some examples include solar panels, green roofs, and rainwater harvesting systems, whose energy-efficient designs not only help reduce energy bills for homeowners but also minimize the impact on the environment.
This forward-thinking approach aligns well with the shift towards eco-conscious living happening around the world. Although this may affect real estate pricing, it’s definitely more beneficial down the line for everyone involved in the housing market.
Commercial is Changing
Residential real estate isn’t the only one that has adapted in the wake of the pandemic. There has also been a lot of changes in workspaces, with remote working growing more popular by the day. Post-pandemic, there might be another shift, as employers are promoting a hybrid concept as a viable alternative to full remote working. Employers are fully aware that employees prefer the flexibility of working from home –– that is why they have crafted strategies to make the return-to-office plan more enticing. One of these strategies is to enhance the workplace and make it more innovative. Occupiers are exploring premium office spaces that upgrade not just the work environment, but also enhanced work-life balance through various amenities.
Higher yields in terms of rent is also expected this year, as existing tenants continue to expand in central business districts like Makati, Ortigas, and BGC. However, it is important to note that momentum will be relatively slow, due to the fact that there is a growing interest from big companies to expand outside Metro Manila, and explore markets where they can get more talent with less competition.
A New Growth Path
Market analysis looks promising, as the demand for real estate spaces continue to rise. While the developers are expected to benefit from real estate demand, potential investors can benefit from higher rental yields due to the potential of real estate pricing.
New projects are also projected to generate new employment opportunities, which can further add to the demand for housing. This may also drive business activities that can result to higher occupancy when it comes to commercial real estate.
The boom in communities and townships outside Metro Manila suggests a shift in preferences, as buyers are being attracted to residential properties in highly urbanized provinces that have educational, leisure, and commercial facilities. Emerging cities beyond Manila, Cebu, and Davao may also continue their expansion, as they present appealing opportunities for developers and landlords due to affordable land, lower cost of living, and operational costs.
The hospitality sector is also enjoying an upswing as occupancy nears pre-pandemic levels, giving developers and landlords more reasons to invest. This trend is even more evident in key areas like BGC and Makati CBD. Even rental properties have been on the rise as foreign tourists continue to visit the country. In 2023, foreign arrivals outperformed the projected target, tallying an impressive 4.88 million visitors in just 11 months. So as the country opens its doors to more visitors, a positive outlook remains for real estate developers and investors.
Lastly, Filipinos are showing a growing interest in acquiring additional properties in Metro Luzon, with residential condominiums as their top priority in terms of investments. 3 locations emerged as the favored locations, with Tagaytay coming in first, followed by Pampanga, and Batangas (Nasugbu and Laiya). In April 2023, residential selling rates reveal an evident demand at 42%, of units sold being categorized as residential-leisure properties. As of last year, the selling rate for a condominium Tagaytay is at Php 122,500 per square meter. Since 2020, prices for residential condominiums have gone up by almost 20% in the said area. Tagaytay remains to be the top choice for people looking to by second homes due to its close proximity to tourism destinations, shopping centers, and lifestyle hubs.
2024 is a truly a transformative year for the Filipino housing sector. The changing market dynamics will encourage more players to venture outside the typical CBDs to address the need for more spaces, be it for residential purposes or otherwise. The growing trend of collaborative workspaces, the comeback of the hospitality market, and the rise of second homes not only add to the optimistic outlook, but ultimately, ensure that real estate investments remains a priority for Filipinos moving forward.
Opportunities with PHINMA Properties
Real estate Philippines is ripe with investment opportunities. And Filipino-owned PHINMA Properties is well-positioned to make the most of this dynamic, ever-evolving market, with its growing portfolio of property development projects. Guided by the core value of weaving tradition into homes, PHINMA Properties provides Filipinos with properties that celebrate our country’s unique heritage while nurturing a lifestyle designed for the future
At PHINMA Properties, all properties are placed in accessible locations in both major and emerging areas across the country. The properties are near top schools, central business districts, and tourism destinations. With over 30 years of commitment to excellence, PHINMA Properties brings together tradition and modern aesthetics, as well as form and functionality, to create truly amazing living spaces for Filipinos.
Inspired by the growing trend of sustainability, PHINMA Properties is focused on crafting communities and townships that celebrate the use of natural materials and traditional Filipino design principles to promote eco-conscious living that’s intrinsically our own.
To discover the exciting possibilities in real estate Philippines, visit phinmaproperties.com and check out the completed properties. You may also get in touch with PHINMA Properties if you already have a property in mind and you wish to explore the idea of buying your dream home.
