Retail and office sectors fared significantly while logistics and manufacturing grew at a steady pace of 3.5 percent YoY
The Philippines has piqued the interest of foreign investors as it offers a myriad of opportunities, reported PhilStar. With a fast-growing economy, resilience to external shocks, and a price advantage compared to other Asian locations, the property market is open to those seeking strong upside potential.
Sheila Lobien, CEO of Lobien Realty Group, shared his sentiment on the matter, saying “2022 is the best time to invest in Philippine real estate… The uncertainty brought about by the pandemic softened property prices but the expected economic recovery is also expected to affect property demand and increase prices.”
The Asia Pacific’s real estate sector continued to experience investment growth in Q1 2022 as volumes reached a peak of 20 percent year-on-year. In the region, direct real estate investments deployed USD40.8 billion in capital throughout the quarter, according to JLL.
Retail and office sectors fared significantly while logistics and manufacturing grew at a steady pace of 3.5 percent YoY. In Q1 2022, the retail sector saw the most improvement, with investments up 39 percent YoY. Almost USD8 billion was invested in retail assets as foot traffic increased following the relaxing of pandemic regulations in most markets.
In terms of overall volume, the office market remained the most popular, with USD17.3 billion in direct investment at the end of the first quarter, up nine percent YoY.
“Retail will be the fastest rebound in the property sector, with sales returning to pre-pandemic levels,” stated Richard T. Raymundo, managing director of Colliers Philippines.
New supply is expected to reach 409,000 sq m this year. A report from the company also sees the annual delivery of approximately 250,500 sq m from 2022 to 2025.
Joey Roi H. Bondoc, associate director at Colliers, also said that mall operators are saying that approximately 60 percent of mall traffic has returned, which is a good thing in terms of mall space absorption.
Revenge shopping is one of the reasons for the surge of growth in the retail sector, according to data gathered by BusinessWorld.
The Property Report editors wrote this article. For more information, email: [email protected].
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