As the effects of the pandemic started to wane, the Philippine real estate market has been on an upward trend in the last couple of years. But what does the future hold? Before investing in a property, it’s important to look at the trends and data to predict what’s to come. In this article, we’re taking a deep dive into Philippine real estate forecasts, examining factors such as population growth, government initiatives, and economic stability. Whether you’re buying or selling, read on before taking your next steps.
The real estate market will continue to grow.
Despite the economic turmoil caused by the COVID-19 pandemic, the Philippine real estate market has continued to grow. According to the Colliers Global real estate forecast, the country’s property market will continue on this path in the next five years with its annual growth rate projected at 5.4%. The market is expected to reach an average value of $900 billion by 2023, making it one of the largest property markets in Southeast Asia.
Residential and commercial properties will continue to see high demand.
The demand for residential and commercial properties in the Philippines is expected to remain high over the next five years. Colliers Global expects that there will be an increase in property recovery over the next five years. Thanks to strong economic growth and an increasing demand for residential properties, the number of homes sold will increase by 5% to 8% while prices remain stable.
Additionally, the demand for apartments and condominiums is expected to increase, while single-family houses will remain more affordable than they have been in recent years.
There will be an increase in demand for commercial spaces due to hybrid work arrangements.
Despite concerns about reduced office space availability, purchases of commercial spaces in Metro Manila continue to rise as a result of hybrid work arrangements. Outsourcing businesses help fuel this increase in demand as well. Colliers also predicts that property values will grow over time as rising employment rates and incomes drive the demand for new homes.
Foreign investments are on the rise.
There has been an increase in foreign investors in the Philippine real estate market, with Japanese firms showing renewed interest. Other major trading partners have also pledged to invest in the country, which should be supported by expected trade agreements to be adopted by the Philippine Senate.
The report also revealed that there were significant investments in the food production, e-commerce, and logistics sectors over the past year. Furthermore, the establishment of new industrial parks and amenities in Central and Southern Luzon could provide additional options for realtors to negotiate better property lease terms and prices for warehouses. These developments show promising signs of growth for the Philippine real estate market and the economy as a whole.
Philippine tourism will continue to recover.
The continuous recovery of Philippine tourism is expected to fuel the demand for real estate properties in the country. With an increase in both international and domestic travelers, the need for hotels, resorts, and other accommodation options is on the rise. This provides an opportunity for real estate investors to capitalize on the growing demand in the tourism industry.