DESPITE a slower-than-expected recovery in the early part of the year, the Philippine real estate market is now showing promising signs of growth for 2024. For overseas Filipinos looking to invest back home, this could mean better opportunities and returns in the coming months.
Demand drivers: What fuels growth?
The resurgence in demand for office spaces, particularly within the Metro Manila area, is being driven by key sectors: (data source: inq7.net)
- Business Process Outsourcing (BPO): This sector remains a strong player, contributing 38% of the demand for office spaces in the metro.
- Online gaming: Another significant player, online gaming companies account for 19% of office space demand.
- Other industries: The remaining 43% comes from various industries, showing diversity in growth.
For investors, this trend highlights the importance of identifying properties near major business hubs, as demand for office spaces directly impacts nearby residential areas.
Township locations: The rise of areas outside Metro Manila
An interesting trend is the growing prominence of real estate developments outside of Metro Manila. In fact, 60% of township locations are now concentrated in provinces like Laguna, Cebu, Pampanga, and Cavite. These areas are rapidly urbanizing, offering potential investors a chance to tap into emerging markets with less competition than Metro Manila.
With the growth of township developments and business centers in these regions, overseas investors should consider properties in key provinces. Not only do they offer competitive pricing, but they are also positioned for long-term value appreciation.
Resilience amid global challenges
Even with global economic uncertainty, the Philippine real estate market remains resilient. Using the metrics set by the McKinsey Report, the country has achieved what is referred to as a “soft landing,” avoiding severe economic pitfalls that could have impacted growth. In 2024, the real estate sector is expected to maintain this upward trajectory, buoyed by favorable conditions such as controlled inflation and sustained economic expansion.
For overseas Filipinos looking to invest, this resilience is a key factor. The Philippine real estate market, especially in residential, township, and mixed-use developments, has proven to weather financial downturns better than many other regions.
The rise of residential prices and opportunities
As noted in recent data, residential property prices, particularly for housing units and condominiums, have been on the rise. This is a positive indicator for potential investors, as rising property values often signal strong demand and a thriving market. For 2024, analysts expect further increases in housing prices due to limited supply in key urban areas like Metro Manila, Cebu, and Davao.
With this continued upward trend, now could be the ideal time for overseas Filipinos to consider investing in the Philippine housing market. Whether it’s for personal use or rental purposes, properties bought today are expected to yield higher returns in the future.
Better prospects for investors
The Philippine government’s focus on improving infrastructure and developing smart cities further enhances the outlook for real estate. With better transportation, accessibility, and services, areas outside traditional city centers are expected to become more attractive for homebuyers and investors.
For Filipinos abroad, this represents a unique opportunity to secure properties at a time when prices are still on the rise, but before they reach their peak. Properties in emerging areas, such as Pampanga or Laguna, might provide the best balance between affordability and growth potential.
At SAB Realty, we understand the challenges and opportunities of investing from abroad. Whether you’re looking to buy a family home, diversify your investment portfolio, or prepare for retirement, we provide expert guidance to help you make informed decisions.
For more information and personalized assistance, contact SAB Realty. We’re here to help you navigate the evolving landscape of Philippine real estate with confidence.
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The opinions, beliefs and viewpoints expressed by the author do not necessarily reflect the opinions, beliefs and viewpoints of Asian Journal, its management, editorial board and staff.
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Sharon Ann Bathan-San Pedro, a licensed real estate broker in the Philippines for nine years, is also a member of NAR (National Association of Realtors in America). For inquiries, questions, or are interested in buying or selling a property, please feel free to reach out via email at [email protected] or call PH 0917-8237796 (Whatsapp and Viber) USA (909) 413-1480 (Viber).
