Pandemic-induced trends presume to help progress the supply and demand for real estate offerings
As stated by Cushman Wakefield Property Market News, the rollout of COVID-19 vaccinations in the Philippines has triggered a recovery and several growth opportunities to the real estate market this year, while the pandemic itself has emerged new trends and accelerated existing ones such as remote working and increased online shopping.
The business process outsourcing (BPO) industry remains the key driver of office space take-up in the Philippines and is anticipated to strengthen following the arrival and distribution of the COVID-19 vaccine. However, the industry is expected to lack interest and performance in 2021 due to short-term investor pullback augmented by the poor performance of BPO companies linked to the travel and leisure sector. Despite the nation’s competitive and skilled labour pool, investor confidence will remain a challenge in the short-term as business uncertainties endure in the global market.
The pickup of overseas Filipino (OF) remittances may not happen before 2022 as countries with the greatest overseas Filipino workers (OFW) deployment such as Saudi Arabia, Kuwait, Bahrain, and Oman may continue closing their borders for travelling. As a result, lower OF remittances will further decrease the demand for mid-range residential units, specifically residential condominium developments in Metro Manila. That said, horizontal developments in urban areas right outside Metro Manila are expected to gain appeal due to flexible working arrangements and preference for vacant locations.
In the hospitality sector, the Department of Tourism (DOT) and Department of Trade and Industry (DTI) has allowed the holding of accredited meetings and special events in hotels, as a strategy to ease the financial burden of hotel operators struggling to overcome the stress of occupancy rates and dull tourism activities. The installation of new technologies to ensure health and safety protocols in other markets can be replicated in this industry.
The new logistics hub by MetroPac Movers Inc. (MMI) in Sta. Rosa Laguna, commended to be the Philippines’s most sophisticated logistics complex, is scheduled to open in the fourth quarter of 2021 to meet the need for modern and secure supply chain solutions. Some of the hub’s offerings include 65 truck docks for speedy truck turnaround and several surveillance and security systems.
The reopening of cinemas in general community quarantine (GCQ) areas was deferred to March, as the earlier decision could potentially lead to a new surge in infection cases. However, the announcement for reopening cinemas and entertainment establishments is seen to somehow induce consumer spending.
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