Getting to Know Our Lead Real Estate Market Advisor, Ulysses Guevara Gammad
- As a team member, can you tell us about your role in the IAT project?
With the Philippines as the first launching ground for the IAT project, it is essential for the team to have a full grasp of the Philippine real estate environment: best practices, gaps and other opportunities for improvement.
As the team’s Lead Real Estate Market Advisor, my role is to impart to the team the ins and outs of the industry, including applicable laws and regulations; connect them to the key industry players, governing bodies and personalities; and share to the them my experience way back when I started as an in — house agent until now that I practice general brokerage as a licensed broker and appraiser.
Also, anticipating the fact that resistance to this new and unique idea is a challenge, it is imperative to look at the behavior and character of Filipinos as investors and property owners. What is the level of awareness of an average Filipino to cryptocurrency? More so, what is his take on the union of cryptocurrency and real estate business into a single ecosystem? Most importantly, we continue to review, analyze and assess the industry and the Philippine economy, as a whole, to ensure the project’s sustainability and relevance in the coming years.
2. What do you think about the project?
Our vision in IAT is to make real estate investing in the Philippines more accessible, reliable, efficient, and, of course, profitable to everybody, regardless of social status. Personally, I find the project very timely and promising, utilizing the latest technology in making the investment experience more convenient and accessible to consumers. While the Philippine real estate has steadily grown in the recent years, the laws and systems surrounding it lagged behind.
As such, the IAT Tokens Ecosystem is envisioned to create an environment whereby various real estate stakeholders are connected by a single yet effective business model, backed by a team of experts in their respective fields. Overall, I am enthusiastic to this project and am looking forward to a better and more vibrant real estate experience in the Philippines.
3. Can you give us your view on the Philippine Real Estate Market.
Much has been said about the robust growth of the Philippine economy and, more particularly, its booming real estate industry. The “Big Three” credit rating agencies: S&P, Moody’s and Fitch are all in unison in giving the Philippines a stable, if not positive rating in the recent decade. And in a recent study conducted by HSBC, a leading international bank, the Philippines will be the 16th largest economy in the world.
Personally, I am confident that the Philippines will attain this bold prediction by HSBC, sooner than later. In my almost two decades of immersion in the industry, I have witnessed its constant growth, enduring the different world crises in the recent years. The demand for residential, commercial/office and industrial properties keeps on coming with the emergence and expansion of BPO, KPO and now, POGO.
Worth to mention as one of the major contributors to its growth is the continuously increasing population of the country, particularly the working middle class and the overseas Filipino workers. The Philippines still has one of the most, if not the most, affordable real estate compared to its Asian neighbors wherein prices have doubled, tripled or even more.
Aside from being very affordable, the return of investment or yield is also higher, making us the more profitable and attractive choice for many investors.
4. In your opinion, what are the problems hindering the growth of the real estate market in the Philippines?
The Philippine real estate market is actually growing and has continually done so. The only time it slowed down was during the financial crisis of 1997–2000 and 2008–2010 but was able to bounce back immediately right after. Perhaps, the proper question would be: What are the problems hindering the maximum growth of the real estate market in the Philippines?
There are several factors that slows down the growth of the real estate market. First are the high government — mandated taxes imposed in buying and selling of properties, such as the 6% capital gains tax for selling a property, regardless if there is indeed an actual gain or none, and the 12% VAT for properties that are used for business purposes.
Second, the Philippines’ lack of centralized system wherein one can check the full history of a particular property, the documents and all information related to it. Third, the Philippine is yet to have an effective infrastructure system. While the build, build, build initiative projects of the government is underway, it is still not enough for the country to have an efficient transport system that will link different areas in and out of Metro Manila.
Fourth is the presence of unlicensed brokers/agents who are not equipped with the right knowledge and professionalism. Fifth is the presence of red tape in our government agencies from property development to construction, issuance of permits, payment of taxes, transfer of titles, etc. These, among others, are the gaps that need to be addressed to further boost the Philippines real estate industry.
