For the year of 2018, the real estate sector is projected to continue its robust performance. According to Colliers International, the investment property markets in Asia will remain firm with yield remaining constant.
As one of the most dynamic countries, Philippines is now seen as the “Rising Tiger” of Asia due to the remarkable strength of its rising economic. One of the major gainers in the Philippines economy’s bull-run is the strong foundation of its real-estate sector.
Along with its sturdy Growth Domestic Product (GDP) which expands about 6.7% last year (2017), the country’s property sector has become one of the main gateways for investments both locally and overseas. Over the past two years, Jones Lang Lasalle (JLL), a global real estate consulting firm has recognized the Philippines as one of the Top 30 real estate investment cities in the world.
One of the articles produced by JLL “Global Real Estate Transparency Index 2016”, it highlighted the demand for investments in the Philippines. In comparison to other countries, Philippine’s main edge in the property market is the country’s demographic profile which makes it even more attractive for investment opportunities.
In another report conducted by Lamudi “Real Estate Report 2017”, a distinct contrast was seen when comparing with other countries where a vast majority of those within the millennial age group (18–34 years old) in the Philippines are now going into property investment for the long term. Overseas Filipino Workers (OFW), which is estimated at approximately 10 million worldwide is also contributing to the demand for Philippine real estate and has resulted in a massive growth in the market.
When comparing with other more mature markets such as London and New York City, Philippine presents a market where the real estate prices are more reasonable and much more affordable. For example, one could still find a property in Metro Manila that costs just one-tenth of a property in Central London and New York City.
However, the Philippine real estate market is currently not considered the most seamless when it comes to foreign ownership when compared with other developed countries in the region such as Singapore, although the vast difference in price is still attracting many foreign investors due to the value that they get when investing in the Philippine real estate market.
In summary, global property outlook this year is positive and the Philippines market is well positioned to take advantage of it with major developers committing to new developments different parts of the country.
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References:
- http://www.colliers.com/en-gb/philippines/insights
- http://www.creba.ph/pdf/Phil_Real_Estate_Outlook_&_Opportunities_for_Investment_Market.pdf (JONES LANG LASALLE)
- Lamudi Real Estate Report 2017,
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