Two Reforms Signed by PBBM Likely to Lift Philippine Property Sector

Marcos Signed Two Laws to Help Boost PH Property Market

With the approval from President Ferdinand Marcos, Jr., two laws were created to help boost the country’s property sector. As Philippine real estate recovers from the POGO exodus and pandemic aftereffects, the two measures will play a significant role in attracting global players as well as in expediting big-ticket infra projects. So, let’s talk about these two recently enacted laws signed by PBBM and how they will affect the real estate industry.

​What Is the Extended Land Lease?

One of the two laws successfully passed is Republic Act No. 12252, which liberalizes private land leases for foreign investors. This is to extend the stability of lease contracts, including those in tourism, industrial estates, ecological conservation, agroforestry, agro-industrial ventures, agriculture, and factories, from 50 plus 25 years to 99 years.

​Benefits of RA #12252

Property players in the Philippines can benefit from incoming foreign investments, especially in the industrial and leisure sectors. More developers can also collaborate with global hospitality brands to create better accommodation facilities as well as more convention centers nationwide. This will ultimately maximize the already improving infrastructure of the country.

Moreover, this significant milestone can boost the efforts of the Philippine government to rehabilitate and modernize airports in key cities nationwide. This will be crucial as the government aims to attract 12 million foreign visitors by 2028. Having an expansive industrial footprint, these developers should consider the benefit of manufacturing locators and encourage them to build facilities in industrial parks, occupy cold chain facilities, and fill up warehouses.
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With the extension of long-term land leases in the country, more investments are expected to arrive, while more industrial zones will be created outside central Luzon and other established hubs. This new measure generally opens the path for more international manufacturing players. In addition to electronics sub-segments, more sunrise industries are also likely to proliferate in the country.

Accelerated and Reformed Right-of-Way Act

The second reform that President Marcos, Jr. signed into law is the ARROW Act, which streamlines the processing of right-of-way and expedites the procedure to reduce bottlenecks that often delay public infra projects. This also invites partnership between government agencies to pinpoint key problems, including connectivity, environmental safeguards, and electrification.
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One key provision of this measure is to set an appropriate rate for all properties acquired by the government. One major advantage of this law is eliminating infrastructure gaps so that projects will be implemented right away once they are approved. Infrastructure is crucial in boosting demand in the property market as well as in guiding Philippine developers undergoing expansion.

Final Thoughts

With more reforms being amended and approved, infrastructure in the Philippines will be more successful, especially in helping the property sector boom in the long run. Whether you’re looking to invest in a new property or learning the real estate market, understanding these laws is important. You may check out REALS.PH, if you want to discover house and lot for sale in Baguio City. Contact us today for more details.