Investing in real estate can be a rewarding experience, especially if you spend time learning about the various property markets. Take the Philippines for example. Depending on their experiences, most non-Filipinos think of the country as a BPO haven, a tropical beachfront, or a traffic-plagued mess. For investors with a keen eye, however, Manila is currently the hottest luxury residential property market. Who would’ve thought that this small Southeast Asian country beat established markets such as Dubai and the Bahamas? More importantly, what made the Philippine real estate scene a post-pandemic darling for investors?  

The Philippines: Home of the World’s Fastest Growing Luxury Market

What makes the Philippines a hot destination for homebuyers and real estate investors? The answer is simple: Growth. Other established locations such as New York, Tokyo, London, etc remain the premier destinations for business travelers and jetsetters. However, property prices in these places are already sky-high. In most cases, investing in real estate at these locations will likely generate lower growth values thanks to inflation, available property shortage, and changing local policies.  

In contrast, luxury property markets in the Philippines, Abu Dhabi, the Bahamas, Portugal, and South Africa all registered high growth. Manila registered an eye-popping 26.3% growth in 2023, which led all 100 markets covered by Knight Frank’s 2023 Wealth Report. This rate becomes all the more amazing considering that the world growth average for luxury markets was 3.1% last year.          

What Makes Philippine Real Estate a Great Investment? 

Despite a post-COVID economic slowdown worldwide, the Philippines emerged relatively unscathed. For 2023, the country posted a stunning 5.6% GDP growth even as the worldwide average was 3.21%. Thanks to remittances from its Overseas Filipino Workers (OFW), a thriving BPO industry, and a resurgence in tourism, the Philippines managed to maintain productivity and control inflation better. This put local homebuyers and foreign investors in a buying mood even when faced with higher prices and interest rates. 

It also helps that property prices in the Philippines are way less expensive compared to established markets. According to finder.com, the global average cost of a 2-bedroom flat is $223,203.20. A prime location such as Hong Kong and London will cost $1.83 million and $333,356.60. Meanwhile, the same unit will only cost $154,720.40 in the Philippines. In contrast, the lowest-price 2-bedroom unit can be bought in Egypt at $30,436.80. 

Investing in Philippine Real Estate Means Plenty of Choices

The government’s continued support for major infrastructure projects is also helping make the country an even more attractive destination. To solve the capital’s perennial gridlock issues, the government ordered plenty of infrastructure projects, This includes installing new railway systems and building elevated bypass roads. The government also began developing airports and seaports to help decongest existing terminals in the capital within a few years. Similarly, improvements in infrastructure in the provinces led to greater demand for properties. Another big factor was the resumption of construction activity after a three-year layoff due to COVID. Developers picked up the pace to complete their unfinished residential projects and office buildings. 

In a few years, Philippine real estate homebuyers will find their investments paying off. This is especially true if current government projects deliver their intended relief as promised. Many pre-selling properties being sold today will be completed in time for the completion of major infrastructure projects. Expect the values of these properties to rise significantly once the new railways, newer skyways, and new airports open for business. 

Developments Outside of Metro Manila 

Aside from prime residential condominiums in Metro Manila’s central business districts (CBDs), developers are also offering house and lot packages in suburban areas. These subdivisions are mostly located in self-contained communities that emulate the grandeur of the National Capital Region (NCR) without the density and the gridlock. In case residents have business in the capital, they’ll enjoy faster travel times thanks to new connector roads. 

Meanwhile, major developers are also building hotels and resorts near famous tourist spots. By betting big on tourism, major Philippine real estate players hope to ensure accommodations are available for the projected increase in visitors. And for those who fell in love with the place, developers are banking on their beachfront properties to entice them to stay.    

Looking for Great Philippine Real Estate Finds? Let Ohmyhome Be Your Guide 

Are you looking for your next property investment? Take advantage of the rising Philippine real estate market to acquire your dream home or get a high-value property. Ohmyhome can help you navigate the ins and outs of the local property scene. By partnering with over 200 of the Philippines’ best developers, we built a comprehensive listing that includes thousands of available properties nationwide. 

Ohmyhome isn’t just about helping you find a new home. Our team of licensed real estate professionals can also help you secure the best property deals as well as the best mortgage rates available. Meanwhile, our top-notch customer service team will be happy to help with local filings and documentation tasks. All you need to do is sign up for a new account, log in, and leave the rest to us!