Strategic developments and economic stability boost market confidence
As the global economy navigates the post-pandemic landscape, the Philippine real estate market shows signs of a robust recovery in 2024. Despite facing volatility in recent years, several factors indicate a promising future for the sector.
Economic and market dynamics
The Philippine economy is set to grow by 5.8 percent in 2024, according to the World Bank, marking it as the fastest-growing economy in Southeast Asia. This growth is underpinned by increased international tourist arrivals, which are expected to reach pre-pandemic levels of eight million, generating approximately PHP700 billion (USD12 billion) in tourism receipts.
Furthermore, remittances from overseas Filipino workers (OFWs) reached a record USD37.2 billion in 2023, with modest growth anticipated in the coming year. These economic tailwinds are crucial in bolstering the real estate market, reported Inquirer.Net.
The impact of townships and mixed-use developments
One of the bright spots in the real estate industry is the continued development of townships or mixed-use communities. These developments, which combine residential, commercial, office, and leisure spaces, are increasingly popular.
Currently, 40 percent of these projects are in Metro Manila, with the remaining 60 percent spread across the provinces. Townships are particularly beneficial in addressing the shift towards mixed and work-from-home arrangements by offering convenient office locations close to residential areas, reducing commute times and costs for employees.
Related: Celebrated Visayas and Mindanao real estate developers lead the charge in national progress
Rising luxury market in Metro Manila
The luxury residential market in Metro Manila is another sector experiencing significant growth. In 2023, the prices of luxury residential units surged by 21.2 percent, the fastest increase globally, surpassing Dubai and Shanghai. Rick Santos, Chairman and CEO of Santos Knight Frank, attributes this to the limited prime residential stock in Metro Manila and high demand from wealthy buyers. Despite rising interest rates, Tatler Asia revealed that strong investor confidence in the Philippine administration has kept the market buoyant.
Metro Manila remains attractive to both local and international buyers due to its relatively affordable property prices compared to other global cities. For instance, in 2022, USD1 million can purchase about 158 square meters of prime residential property in Manila, significantly more than what is available in Monaco, New York, or Singapore. This affordability, coupled with resilient demand during the pandemic, makes Metro Manila an appealing destination for luxury real estate investments.
Related: The 12th PropertyGuru Philippines Property Awards diversify to spotlight the country’s growing investment destinations
Award-winning developers and sustainable growth
Recognising excellence in the industry, the PropertyGuru Philippines Property Awards highlighted several top developers in 2023. Robinsons Land was named Best Developer in the Visayas and overall, while Federal Land, Inc. and Cebu Landmasters, Inc. were recognised for their contributions in Luzon and Mindanao, respectively. Other notable winners include Aboitiz InfraCapital Economic Estates for Best Industrial Developer, RLC Residences for Best Lifestyle Developer, Fedral Land, Inc. for Best Mixed Use Developer, and Torre Lorenzo Development Corporation for Best Boutique Developer.
These awards reflect the industry’s commitment to quality and sustainability. For instance, Primary Homes, Inc., awarded Best Sustainable Developer, exemplifies the push towards environmentally friendly and sustainable construction practices, which are increasingly important to modern buyers and investors.
Related: The PropertyGuru Philippines Property Awards set to elevate standards of real estate, drive innovation in 12th edition
Investment insights and future outlook
Real estate experts suggest that 2024 is an opportune year to invest in the Philippine market. The combination of solid economic performance, strategic developments in townships, and attractive luxury property prices create a conducive environment for both local and international investors. However, potential investors are advised to plan carefully and establish clear objectives to navigate the competitive market effectivel.
All in all, the Philippine real estate sector is on the cusp of a significant recovery in 2024, driven by strong economic fundamentals, innovative developments, and sustained demand for luxury properties. With the government’s supportive policies and the real estate industry’s resilience, the market is well-positioned for growth, making it an exciting prospect for investors and stakeholders alike.
Know any award-worthy residential, commercial, or industrial projects in the archipelago? Nominate them for the 12th annual PropertyGuru Philippines Property Awards on or before 14 June 2024. To know more, visit AsiaPropertyAwards.com/Award/Philippines/.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
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