Although difficulties may still arise, the real estate industry has proven to be resilient and adaptable
The Philippine property sector had an excellent start this year despite the challenges that affected both local and global economies.
BusinessWorld reported that, based on a recent study, the country’s real estate market is on its way to a steady recovery, especially with the economy looking up with an 8.3 percent expansion in Q1 2022. This was a massive jump from last year’s numbers, which were at a low 3.8 percent.
The commercial property market is continuously recovering, notably in retail, as it is experiencing an influx in activity due to pent-up demand for consumption, high vaccination rates, the return-to-office (RTO) mandate, and relaxed travel restrictions.
According to the Philippine News Agency, data from Knight Frank revealed that 32.7 percent of commercial space occupants are for the food and beverage sector while 32.1 percent are for clothing stores.
The vacancy rate in the commercial sector for Q2 reached 4.6 percent, which was close to Q4 2019’s 3.6 percent.
“(T)he Philippines’ property sector is likely to see significant recovery in the next two to three years into the administration of President Ferdinand Romualdez Marcos, Jr., as demand returns on both commercial and residential property,” noted Santos Knight Frank in a statement.
As for office space, it was revealed that there is approximately 3.3 million sq ft of new supply recorded in Q1 2022, a big difference compared to Q4 2021’s 1.2 million s q ft.
Lockdowns, which led to unemployment, a decline in consumer and company confidence, and a reduction in remittance inflows, took a toll on the Philippine economy, quipped INQUIRER.net. These have affected the property market in varying degrees, as travel limitations and work-from-home policies were implemented.
Although difficulties may still arise, the real estate industry has proven to be resilient and adaptable.
The Property Report editors wrote this article. For more information, email: [email protected].
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