An Overview of the Real Estate Market in the Philippines
The Philippines have a vibrant and expanding real estate market due to technological advancements, industrialization, Business Process Outsourcing (BPO), and increasing population. The types of properties available in this region are lands, residents, industrial and commercial properties. This article gives an overview of the Philippines’ real estate market based on these four property types.
Overview of the Philippines real estate market based on property types
Investing in lands, parking lots, ranches, and farms have proven to be a wise form of investment over time, even in the Philippines. Initially, lands in the Philippines were under communal use. This transited with the adoption of Spanish laws that allowed people to own lands privately. As the Americans joined the picture, more rights were accorded the Filipinos for the control of lands. At present, the control and ownership of lands in the urban and rural areas are regulated by the Philippines’ Civil Code. Sadly, foreigners are not permitted to own lands here. With economic drivers like industrialization, the value of lands in the Philippines continue to appreciate daily.
Residential Properties cover flats, condominiums, condotels, and townhouses. Since 2013, there has been a rise in demand for residential properties in the Philippines. This demand came mostly from high-class citizens, families, and people in the middle ages, which suggests urbanization and technological advancements in the region. 2018 saw a 15% increase in the price of a 3-bedroom condo. In just the second quarter of 2019, over 20,000 new condos were erected. By the third quarter, there was a 29.1% year-over-year price increase in condos’ cost, while townhouses simultaneously rose by 5%. This signifies an impressive real estate market for investors.
Industrial properties include storage buildings, warehouses, research centers, and factories. The surge in the Philippines’ population and industrialization level has led to an increase in demand for industrial properties. Within the last five years, the BPO industry has steered a fierce demand for office spaces in the Philippines. This demand is expected to increase by 12 to 18% within the next five years. Developers are building more office complexes, in that way stabilizing the cost of getting an office space. Bodies like AXE Real Estate are aware of different tax and non-tax incentives provided by the Philippines government to attract investors.
Business centers, hotels, malls, and restaurants are forms of residential buildings. As the years go by, the Philippines have attracted more tourists than ever, hence pressing hard for more hotels, malls, and restaurants. There is a projected 18.3% annual growth rate in the e-commerce sector between 2020 and 2024. Tenants and buyers are on a long queue to get a space for their commercial use while large scale enterprises continue to erect more commercial buildings to meet inclusion demands from smaller enterprises and the public.
If you are considering investing in the Philippine real estate industry, it is wise to learn about its real estate market. This article gives a simplified overview of the real estate market conditions in the different property types available in the Philippines. Working with a profound and professional company like AXE Real Estate will ease the stress of making poor investments when trading in the Philippine Real Estate Market.