The Philippine real estate post-pandemic: What opportunities await investors?

Investors should start looking now for developments with the best potential to increase in value, recommends industry experts

With the Philippine economy all set for recovery in 2021, real estate investors, who now have different needs because of the pandemic, can expect unique opportunities in the country, reported Inquirer.Net. 

Sheila Lobien, the chief executive officer of Lobien Realty Group, advised real estate investors to start searching for developments that have the best potential for growth in value, particularly since the economy has started to reopen and vaccination programmes have begun to roll out. 

Even though global financial, natural, and political risks can affect the Philippine economy, Sheila said that it is quite resilient, as witnessed through its strong recovery after the Asian and Global Financial Crises. 

She added that the demographic of 110 million young (median age 25), highly literate, and dynamic consumers will pave the way for a stronger market in the medium and long term.  

Moreover, the infrastructure projects by the government will help boost growth and aid in continuous recovery. In general, the current projects under construction amidst COVID-19, with upcoming dates of completion, will lead to appreciation in land values. 

Steady appreciation in land value 

As a matter of fact, data revealed that land values in Metro Manila kept growing despite the outbreak, especially in Alabang, Makati, Mandaluyong, Pasig, Quezon City, and Taguig. 

Sheila explained that this ascent signifies how land values will appreciate as soon as the economy recoups. 

To benefit the most from the anticipated appreciation are emerging business hubs located in growth corridors, which will provide the best opportunities for investors planning for a 10-15 year horizon. 

She recommended investing during this time since property prices, primarily in Pasig, Quezon City, and other growth centres, have not yet escalated. This rare buying opportunity is also rewarded by the fact that credit from financial institutions – which now offer less stringent regulations — are widely available. 

Robust demand for residential spaces

In 2020, the demand for homes surpassed supply, as investors saw a favourable purchasing window in the thick of the pandemic. Pick up for pre-selling units, ranging from PHP7 million (USD143,944) to 15 million and PHP15 million, saw a solid outcome. 

Major winners at the 8th PropertyGuru Philippines Property Awards 2020, namely SM Development Corporation, Damosa Land, Inc., and Wee Community Developers, Inc., were among the developments that benefitted from the buying spree. 

Sheila said that the pandemic has changed investors’ priorities, with the majority looking for features normally found in high-quality developments. 

More: Vaccines trigger growth opportunities for the Philippines’ real estate market

Office sector to grow further

On the other hand, the office sector is believed to come out strong post-pandemic. Demand for offices remained robust in 2020 in spite of expectations. The BPO industry remains to be the major driver for this demand, and is anticipated to further grow as international firms resort to outsourcing to control costs as they wait for the global economy to recuperate. 

By 2022, industry experts predict the Philippine outsourcing sector to constitute 22 percent of the global outsourcing market, and it is estimated to surge by nine percent every five years. 

Know of any award-worthy homes, condos, flats, or other real estate projects in the Philippines? Nominate them for the 9th Philippines Property Awards on or before 20 August 2021. Simply visit asiapropertyawards.com/en/award/philippines-property-awards for more details.