Driven by strong economic indicators, government support, and increased investor confidence, the country is poised for lucrative investments
The Philippine real estate market is set to experience a significant surge in 2024, driven by a combination of favourable economic conditions, government support, and increasing investor interest. The projected boom in the sector comes as both local and international stakeholders recognise the potential of the country’s real estate market as a lucrative investment avenue.
A recent report by the Inquirer revealed that experts are optimistic about the real estate industry’s performance in the coming years. Citing robust economic growth, sustained demand for properties, and the government’s commitment to infrastructure development, industry insiders are predicting a promising outlook for the sector. The experts anticipate increased property values, improved housing supply, and a rise in commercial real estate projects.
Supporting this positive sentiment is the World Bank, which recently pledged its commitment to assisting the Philippines in its overall development. In an article published by Philstar, the World Bank expressed its support for the government’s infrastructure initiatives, which are expected to drive economic growth and create opportunities for both local and foreign investors. The international financial institution’s backing adds further credibility to the projected real estate boom.
The Senate’s approval of a bill extending the estate tax amnesty until 2025 is also expected to fuel the surge in real estate activity. Philstar reported that this development aims to encourage individuals and families to invest in real estate by providing them with an opportunity to settle their estate taxes at more favourable terms. The bill’s passage is anticipated to boost property transactions and contribute to the sector’s growth.
Yet, the allure of the Philippine real estate market extends beyond the country’s borders. Hong Kong investors, enticed by the relatively affordable property prices and promising economic prospects, have been actively acquiring residential units in the Philippines. The South China Morning Post highlighted this trend, with Hongkongers taking advantage of the favourable exchange rates and the country’s welcoming environment for foreign property ownership. The influx of foreign investment further solidifies the market’s upward trajectory.
Local real estate tycoon Andrew Tan’s Megaworld Corporation is also playing a significant role in propelling the industry forward. Forbes reported that Megaworld plans on investing a staggering USD6.3 billion in Philippine townships and hotels over the next five years. The company’s commitment to expanding its portfolio indicates a strong belief in the sector’s potential for growth, attracting both local and international investors. Megaworld is among the PropertyGuru Philippines Property Award-winning firms that are pushing for economic acceleration through premier development projects.
Cebu, one of the country’s key property hotspots, continues to lead the property boom, according to another report from the Inquirer. The province’s sustained development and attractive investment climate have made it a prime destination for real estate ventures. With its growing tourism industry, infrastructure projects, and thriving business environment, Cebu remains a frontrunner in the race for real estate dominance.
The convergence of these factors, including positive economic indicators, government support, foreign investments, and major development projects, create an opportune environment for a real estate boom in the Philippines. The projected surge in the sector is expected to benefit both investors and homebuyers, fostering economic growth and enhancing the country’s overall development.
As 2024 approaches, the real estate market stands poised to embark on a transformative journey, capitalising on the wealth of opportunities that lie ahead.
Know of award-worthy residential, commercial, or industrial projects in the Philippines? Nominate them for the 11th annual PropertyGuru Philippines Property Awards on or before 14 July 2023. To know more, visit AsiaPropertyAwards.com/Award/Philippines/.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
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