Soon after the pandemic, when activity in the real estate sector resumed, experts and analysts gave a simple instruction: take advantage of the growth while managing the risks. Many businessmen and investors took the advice and got to enjoy a period of sustained growth and an upward trend of returns.
However, many real estate professionals were still hoping to go back to the way it was before the global pandemic. The reality is, most industries will not be experiencing a complete U-turn. In short, there is no way back to exactly how the way things were before COVID-19. This is why adapting to the new, emerging trends is most crucial at this point as we are about to finish the transition from the crisis. It is a new age that requires new business strategies and execution on the ground.
So far, what have we learned from the real estate industry this 2023?
One of the things that emerged and is continuously enjoying popularity since the pandemic is the work-from-home set-up for the younger generation of working professionals. At this point, the real estate landscape has changed drastically, both for commercial and residential properties. It is definitely a good news for many employees all over the world, but a new challenge for the property sector. This set-up has undeniable, profound impact not only for the owners of commercial spaces and other property sectors that highly depend on what once was a vibrant office real estate market.
Another thing, one of the toughest challenges that real estate went through post-pandemic is the skyrocketing interest rates. This made potential homebuyers reluctant to purchase properties because it is a huge factor to consider for their budget. The unfortunate news is that it is being forecasted that this interest issue will persist for the coming years—affecting both for sellers and buyers.
On a positive note, because of the resumption of activities across various sectors, foreign investments are starting to pour in once again after a long break. Many foreign investors are now eager to acquire new assets especially with the optimistic forecasts to the Philippine economy.
If the economic condition, government support, and investor interest remain favorable as forecasted by real estate experts and analysts, the outlook for the Philippines’ real estate affairs will remain optimistic for 2024. This projected real estate boom will also reach the global market to some extent.
Several reports revealed that professionals are positive that real estate will continue a good performance, not just for 2024 but for the coming years. The potential of the country’s real estate market as a lucrative investment avenue will hopefully be maximized and continuously contribute to the rebuilding of the economy. The factors that will positively boost this will be the sustained demand for properties, the government’s commitment to develop new infrastructures, and continuous economic growth. If all goes well, there will be an increase in property values, improved housing supply, and brand new launches of commercial property developments in the bustling capital.
The Philippine economy is also on a roll, which contributes a lot to the real estate boom happening in the country. Despite the challenges that the country went through in the recent years: COVID-19 pandemic, having the longest lockdown in the world, and change of government leaders—among many others. Still, there is no doubt that there is an bright future to the country’s economy in the coming year.
The Philippine economy is considered to be a picture of the growing potential of different sectors in the country, as forecasted even before the pandemic took place. Because of the country’s promising performance in this area, foreign investments keep pouring in which helps the Philippines establish a good relationship with other countries. Over the past years, the Philippines became a popular investment hotspot for businesses like Business Process Outsourcing (BPO). There is also an increase to the brand new commercial and industrial properties being launched each year. This attracts more and more foreign investors to keep coming, thus creating thousands of jobs across different industries.
Although, many businessmen and investors also experienced huge losses because of the recent market crashes. There are still reluctance here and there, but experts assures the public that the future is looking good for the real estate market. Known to be resilient and quick to recover, real estate remains to be one of the industries with a positive forecast for the future.
Due to the strong potential that the Philippines is showing through the past years, the country is also receiving support from the World Bank, which recently pledged its commitment to assist the country in its overall development. This includes initiatives for more government infrastructure which are expected to help in driving the growth of the economy and create more opportunities for Filipinos. This support from World Bank is helping in establishing the Philippines’ credibility and aids in getting the trust of both the local and foreign investors.
On top of commercial properties and government infrastructures, the residential market is also receiving a unique demand these days. Neighboring countries like Hong Kong and China are starting to acquire residential units in the country, thanks to the favorable exchange rates and the well-known hospitality of Filipinos to the foreign audience. The constant stream of foreign investment is helping establish the real estate market’s upward trend.
Another positive news for the property market is the new emerging cities in the country as new business hubs. As Metro Manila become more congested and the traffic worsens day by day, some of the urbanized cities in the country like Cebu are now becoming key property hotspots. This only looks good as we continue the upward trajectory of the property boom. Sustained development and enticing investment climate are making new business hubs and prime destinations for real estate ventures.
Lastly, the country is in a good position to fuel the demand for real estate as the Senate approves the extension of tax amnesty until the year 2025. This allows potential property buyers to settle their taxes at more favorable terms. This bill is helping to boost property transactions and contribute to the growth of real estate in the country, a testament of the government’s support to this growing sector.
Real estate experts and analysts are urging potential homebuyers to start their house hunting this 2024. With the positive outlook that Philippine real estate 2024 is receiving, there are a lot of reasons that make 2024 a good homebuying year for Filipinos.
An optimistic forecast for the the Philippine real estate market is not only advantageous to sellers but also to buyers. For the past years, it was bleak for property transactions as a direct outcome of the COVID-19 pandemic. It was especially bad for some real estate markets like residential and commercial properties due to less or complete lack of onsite activities.
Good thing, the Philippine property market is now thriving. According to official forecasts, there is an anticipated annual growth rate of 5.4% over the next five years. In 2028, the projection is that the real estate performance will soar by 2.55%. This may sound little to most but in actuality, it refers to a massive market volume of new property developments coming in the future.
Indicators such as positive economic growth, foreign investments, government support, and major projects aimed for development are creating a healthy and thriving environment for real estate in the Philippines. As 2024 approaches, the real estate market stands ready to journey on transformation, while taking advantage on the emerging opportunities that will come in the near future.
What will be its effect to the individual homebuyer? Real estate property values are now expected to grow exponentially in the coming years. This is why potential homeowners are being urged to invest now—either for personal use or for business.
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