Happy New Year! We wish you all the glad tidings and good fortune for 2024! For many Philippine real estate developers, 2024 is but a natural extension of a banner 2023. Spurred by one of the fastest-growing economies in Asia, demand for offices and homes is gaining momentum yet again.
It even came to a point where the Philippines became the hottest prime residential property market worldwide, beating out Dubai and Hong Kong.
But, is the future of Philippine real estate as bright as predicted? Or should we take the usual grain of salt amid the flood of good news? Let’s look at some of the factors that can affect the future of Philippine real estate.
Better Economy, Better Opportunities
Surprisingly, the Philippines emerged from the recent COVID-19 pandemic in far better shape than expected. Despite rising inflation and interest rates, the economy registered a healthy 7.6% GDP growth rate in 2022, followed by an equally impressive 5.5% during the first three quarters of 2023.
For 2024, experts see lots of things to be optimistic about. Finance Secretary Benjamin said that even as the world looks toward a 2.9% growth in 2024, economic managers see the Philippines registering growth between 6.5% to 7.5%.
A healthy real estate market is a great indicator of good economic fundamentals. With the Year of the Dragon seen as a thriving year for the economy, expect the property sector to thrive as well. The renewed interest in luxury properties in Metro Manila is already making major developers pursue more projects targeted to the affluent market. This includes renewed activity in traditional strongholds Makati, BGC, and Ortigas and emerging areas such as Manila’s Bay Area.
A Return to the Office Also Means the Return of MICE
Speaking of COVID-19, 2023 marked the year when the pandemic ended. Prior to the declaration of the pandemic’s end, many offices started pulling back work-from-home options. 2024 should see most companies completely back to normal with workers back at their desks. In real estate terms, this means a return to normalcy for office rentals and the fallout of home rentals in the immediate vicinity.
According to Collier Philippines’ 2024 Outlook, expected office take-up will reach 300,000 sq m, which is 80,000 sq m higher than the previous year’s projections.
Even better, the return to the office means the resumption of MICE – meetings, incentives, conferences, and exhibitions. This means that beginning in 2024, many organizations would want to include the country in their list of destinations for regional and global conferences. It helped that last year’s successful staging of the FIBA World Cup proved that the Philippines can accommodate the demands of global-scale events.
Improved Transportation Systems
While 2024 isn’t a milestone year for many of the country’s big-ticket infrastructure projects, the progress is enough to spur developers to continue making homes and buildings. Chief among these projects is the opening of Metro Manila’s much-delayed central railway hub in Quezon City.
This allows three railway systems (LRT-1, MRT-3, MRT-7, and the Metro Manila Subway to share a common terminal. Even with its new target opening schedule of 2025, partial operations can start as early as this year.
Other projects that are creating a demand for real estate developments include extending the LRT-1 from Baclaran to Cavite, which means convenience for suburban commuters working in the capital. The ongoing construction of the Bulacan International Airport will not only decongest the harried Ninoy Aquino
International Airport but will also bring renewed interest to Bulacan province. Already, Megaworld is busy at work with its newest township outside Metro Manila: Northwin Global City. All in all, 75 flagship infrastructure projects in the Philippines are poised to greatly improve travel and accessibility all over the country.
Growth Beyond Metro Manila
A downside of the Philippines’ rising popularity in real estate is that many urban areas are slowly going out of reach for low and mid-tier markets. This includes Business Process Outsourcing (BPO) companies taking full advantage of the country’s deep pool of English-speaking workers.
Thankfully, the country’s modernization efforts mean that provinces are more than ready to pick up the slack. Cebu, Laguna, and Baguio are already known as alternative locations for BPOs. Today, emerging markets in provinces such as Pampanga, Bulacan, Davao, Iloilo, and Bacolod are also attracting interest from companies looking to hire local talent.
At the same time, resort communities are enjoying renewed growth. The rise in demand for luxury homes convinced developers to take a second look at their resort living offerings. As a result, major developers are ramping up the construction of modern, resort communities that feature great locations and eco-friendly amenities.
The Future is Bright
As you can see, there’s plenty of optimism around 2024 as far as local real estate is concerned. The fundamentals put in place during the pandemic helped the country move in the right direction. Meanwhile, the lifting of the pandemic status injected renewed life in households and offices, which led to greater demand for properties.
Of course, challenges remain in the shadows. Shining an international spotlight on the Philippines means an intensified demand, which in turn can lead to even higher prices. While interest rates are seen to drop beginning this year, they’re still high compared to pre-2020 rates.
This means limited opportunities for would-be homeowners, who might prefer to play a waiting game when lending conditions improve. Still, the best time to get involved with real estate was yesterday. The second-best time to do so? The moment you are in a position to do so.
Your Real Estate Future is Brighter With Ohmyhome
With so many properties being marketed, how do you find your dream home amid the rubble? Visiting individual developer websites can be a tiring experience. Sites either have nothing to show but pictures or they make you jump through hoops to get information. As a result, it becomes more difficult to compare prices, features, and amenities.
You can get on with the times by using property tech platforms instead. Ohmyhome Philippines is the country’s premiere tech property platform that makes house hunting a painless experience. Its easy-to-use search tool allows you to filter properties based on your preferred location, house type, turnover year, and price. Details are listed consistently so you can make comparisons on the spot.
Even better, Ohmyhome’s team of real estate professionals can help you every step of the way. From walking you through each property, finding the best financing options, or helping out with documentation, we can help. We can even help you sell your existing properties or find tenants for your idle assets. Start your dream of getting a new home in 2024 the right way! Sign up for a free account at Ohmyhome, and experience hassle-free house hunting like you’ve never had before.
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