The property sector of the Philippines has been going strong for almost a decade, brought by the demanding factors that boosted the country’s economy.
In our previous blog, we talked about the ways to find great investment opportunities in real estate and now, I recommend that the best place to do your research would be through reliable online sources.
Managing your finances through investments gives you the edge to survive inflation, build wealth, speed up your retirement, save money and meet any financial goals you may have for yourself.
The real estate market has changed over the years, and thanks to the sustained growth brought by strong OFW remittances, there is an increase in purchasing power; revenue from different industries, particularly the offshore and outsourcing (O&O) sector; tourists and expatriates coming to the Philippines and foreigners investing in local real estate contributed to the growing economy.
Rural areas have been undergoing urbanization, thanks to the improvement of infrastructure through the Build, Build, Build Program and the housing backlog experienced in the country motivates developers to construct new homes for the millions of people affected by the shortage for the past decades.
MEETING THE DEMANDS
Year after year, trends are bound to change. At the end of this decade, it has become apparent that there are new demographics that boost the demand for properties in the Philippines.
They are as follows:
New Generation - The median age of Filipinos today have decreased overtime, due to the growing population. Professionals in the workforce have a median age of around 24.3 years old, and a lot of them are in search for temporary lodgings as they work in the metropolitan area or looking for their very first property investment. It is also at this age that a lot of millennials are starting their own families and want to settle into a permanent home of their own.
Tourists - There are different demographics that fall under tourism, but mainly Chinese and millennial travelers dominate the numbers. With the Philippines opening the doors for foreigners to visit the country and promote local tourism to boost the economy, there is a need to accommodate their needs, considering that they are looking for something within their budget without sacrificing comfort.
Property Investors - Locals, foreigners and OFWs alike are always on the lookout for what’s hot in the property market. Consider OFWs looking to retire in the future and live on passive income, companies looking for working spaces (commercial) or manufacturing warehouses (industrial). Particular industries under O&Os, e-commerce, infrastructure, finance and technology all contribute to the demand for real estate in both urban and rural areas.
MARKET NEEDS & SUPPLY
After enumerating the demand sector for real estate, we can further explore what they look for in a property such as types, features, price points and locations. Next year, we can infer that the following categories are going to be huge in the upcoming new year:
Co-Living Accomodations - With rising prices, shared living spaces are becoming increasingly popular. The new generation market look for properties that meet their specific needs and rental properties can meet that, within their limited budget. Practicality is key for them, so serviced apartments, dormitories and forms of share-houses
Rent-To-Own - Perfect for first time investors, with limited budget to buy. They are granted opportunities to eventually own real estate, with the option to back out should they be unable to purchase full price at the end of the term.
Work Spaces - The demand brought by the offshore and outsourcing industry, together with the IT-BPM sectors, there has been an expected deficit of supply for office spaces in the years to come. Metro Manila tops the country in terms of the lowest vacancy rate. As we mentioned, the drivers of commercial space comes from a lot of technology companies and professionals from the younger generations. A lot of companies today have been experimenting with different business models and one of the primary manifestations can be seen through their workspace. Co-working spaces provide a flexible and temporary location for different business transactions, without having to buy or regularly rent a piece of property.
Luxury Condominiums - Philippines remains to be the world’s hottest market for high-end condominiums, investors would enjoy renting or reselling for profit. You can find the latest developments in real estate through my listings, allow me to help you find the best property or investment for your needs.
Mid-range Hotels - For tourists in the country, they prefer to experience their travel as opposed to looking for high-end accommodations. 3-4 star hotels have become the popular option, together with bed-and-breakfast homes that can be rented like hotels.
At Mitch Razote Realtor, it’s our aim to maximize the potential of your investment portfolio. If you want to learn more about real estate opportunities in 2020, you can consult me and I’ll tell you more about it in detail.