Many things have massively changed since the pandemic plagued the world. For more than a couple of years after the lockdowns happened, the world witnessed how various sectors of society have been transformed to adapt to the ever-changing needs of consumers around the globe, including the real estate world.
The real estate industry in the Philippines have experienced a major shift in the recent years. Even with the obvious challenges in the field that impacted not just the local scene but the entire world, the Philippine real estate market showed a good performance at the start of this year. When it comes to property development, real estate professionals including legal and financial advisors, have seen a positive outcome across different property segments.
Since the outlook for real estate continue to look good from hereon, many real estate developers are seizing the opportunity to build another real estate project and entice more real estate investors and buyers alike.
For those who are looking into residential real estate or commercial properties at this time, finding out the latest real estate developments or emerging trends in the market will help a lot in the decision making process. Below is a list of several real estate developments this 2022.
1. Increase in Foreign Investments
There is a bright future ahead of commercial real estate as face-to-face work set-up is now slowly being mandated by many companies after two years of remote work. There are many businesses who have embraced the benefits of hybrid work set-up but there are also plenty out there that already transitioned back to fully onsite work.
This may not be an entirely great news for many employees since a huge number of the labor force dislikes the idea of commuting to work everyday, but this is an especially good one for property owners, whether for commercial or residential buildings. This trend will continue to lessen the vacancy for office spaces and apartment rentals in the metropolitan areas.
With the national government’s efforts to fight the pandemic through massive vaccination rollouts all over the country, foreign investments have been pouring in this year. It was noted that there is a total of Php36.49 billion foreign investments at the start of 2022.
These investments are expected to create thousands of jobs in the country which will positively affect the economy—especially the real estate sector. With the presence of more jobs, there will be an even greater demand for more office spaces. More companies will need to rent buildings for their commercial and industrial operations. Indeed, a high employment rate will make a positive ripple effect in different sectors of the society.
One of the sectors that hard carry the country’s economic growth is the business process outsourcing (BPO) industry. As more and more foreign companies turn to the Philippines for their outsourcing and offshoring businesses, real estate investments will continue to be in motion. With the current trend, the rent for condominiums and other commercial properties is seen to increase in the coming months.
2. More Flexible Workspaces
The pandemic have opened the world to endless possibilities of working arrangements. One of the most popular trends that arose during the pandemic is the concept of co-working arrangements. As many employees are hesitant to go through the hassle of everyday commute to work, companies are compensating by offering more satellite offices near the employees’ homes. Now, aside from their headquarters, companies are looking to rent more spaces to make co-working alternatives possible.
Basically, the concept of co-working or having a flexible workspace allows various groups of remote workers, such as freelancers and independent professionals, to work with more convenience in a communal setting. This is far from the traditional office work set-up where employees have to clock in and out of the same place every day, regardless of the inconveniences that the employee had to go through to make it possible.
One of the perfect examples of such inconveniences is the heavy traffic that employees in Metro Manila need to battle each day. The remote work set-up during the pandemic made many people reflect on this and led the majority of workers to not want to go back to the busy business districts in the metro even after the pandemic is over.
This supports the study made by Colliers Philippines, where it was predicted that the number of flexible workspaces will continue to increase for a significant amount in the next three years. It seems that flexibility in work arrangements will soon be one of the priorities of employees in the near future.
3. Millennial Consumer Market
In most industries these days, the majority of consumers are the millennial generation. Even in real estate, there are surveys showing that most potential clients of real estate properties are millennials in their late twenties up to early thirties. This shift in the consumer market surely pushed the real estate market to keep up with the unique needs of Millennials.
One of the attributes that Millennials have is their proficiency in using modern technology. This alone pushed many companies to embrace the digitalization of processes within the business. Marketing is now also done using mostly digital means. This is why e-Commerce has been a huge hit, especially during the early stages of the pandemic.
Another example that is unique to real estate is the rising trend of microcities which is also being attributed to many millennial property buyers. To simply put, microcities are “cities within cities” designed by a real estate developer to meet the specific needs of millennial homeowners. These needs can mean a design that meets or appeals to the 21st-century demands like state-of-the-art amenities where young professionals can live, play, and rest, all within the proximity of their workspace.
4. More Green Spaces
During the pandemic, there are a lot of people who looked into buying a vacation home. One of the reasons behind this is the desire to live in a place that can sustain a healthier lifestyle. This trend created the need for the real estate development process to incorporate green spaces more into their designs. After all, a home should be a place where one can freely do things to improve their health and well-being.
Although, this is not limited for residential properties. Companies are also looking into different ways to incorporate green spaces in the workplace. The goal is to have sustainable workplaces where one can feel safe and healthy, especially in the time of a global pandemic.
In Metro Manila, the pandemic has brought about the need to adopt green workspaces which is causing an increase in the demand for office rentals. In fact, almost half of the upcoming real estate developments have wellness-certified structures to benefit the employees. This is a huge leap forward towards completely green workplace for companies in central business districts and beyond.
5. More Real Estate Investments from OFWs
One of the sectors that the Philippine economy is largely depending on is the remittance coming from Overseas Filipino Workers (OFWs). In fact, the country is one of the largest recipients of foreign remittances around the globe which amounts to billions of pesos each year. From these remittances, one of the main purchases that OFWs are spending on is real estate. Obviously, one of the items that Filipinos abroad want to spend their hard-earned money on is a residential property for their family.
This is why there are many real estate developments that offer affordable real estate financing terms to Filipinos. There is a government-owned fund agency called PAG-IBIG that potential homebuyers can look into. Otherwise, bank financing is always available for eligible clients.
Real Estate Developments to Invest In
Whatever the latest real estate developments are in the market, owning a home where one can live conveniently and comfortably remains to be the ultimate dream for many people all over the globe. Living in a space that enables a person to be their best self can be the greatest gift that one can get for their hard work.
The award-winning luxury real estate developer in the Philippines, Brittany Corporation, aims to make this dream come true for many Filipino families. Brittany built some of the best real estate developments in the country to provide the luxury living experience to affluent homeowners. From the world-class themes and designs, state-of-the-art amenities, and accessibility of these locations, Brittany Homes is the epitome of sophistication and comfort when it comes to luxury real estate.