Reasons to Invest in the Philippine Real Estate Market
According to statistics, the real estate market in the Philippines will hit US$6.06 in 2024. Meanwhile, the annual growth rate will reach 2% from 2024 to 2028. However, although investing in real estate is profitable and offers favorable opportunities, it's vital to understand the market before considering buying a piece of land, house-and-lot, or condo.
So, the question is, why buy a property in the Philippines? To find out, keep reading as we’ve listed down the reasons to invest in the Philippine real estate market.
7 Reasons to Invest in the Philippine Real Estate Market
One of the top reasons to invest in the Philippine real estate market is the affordability of properties. Contrary to other markets in industrialized countries, the value of real estate properties in the Philippines is somewhat economical. Thus, many local and foreign investors are attracted to invest in the country due to the advantageous return on investment.
2. Demographic Edge
Another reason to invest in Philippine real estate is demographic advantage. It's high time to invest in the market due to the country's growing young population. The majority of the population enters the workforce and simultaneously creates new households. As a result, the demand for real estate increases, specifically in residential and commercial properties.
3. Economic Growth
In recent years, the Philippines has been undergoing stable economic growth. Its gross domestic product (GDP) is also developing steadily. Generally, an increase in GDP indicates that the country's middle class is growing, including their purchasing power. Hence, the country's economic growth will contribute to the rising demand for real estate properties.
4. Surging Property Values
Aside from that, the value of real estate properties in the Philippines is continuously rising. During the last few years, multiple areas in the country have experienced a surge in property values. As the market value of investments appreciates, many investors who keep their properties for the long term may benefit from substantial gains.
5. Tourism Industry
Known for its natural landscapes, stunning beaches, rich biodiversity, and lively culture, it’s no surprise that the Philippines has a profitable tourism industry. Apart from Filipino hospitality, the country's tourism contributes to its economy. That's why there's a high demand for hospitality-related real estate properties in the Philippines, from hotels and resorts to condos and vacation rentals.
6. Urbanization & Infrastructure Expansion
In the past few years until the present, the Philippines has been experiencing impressive urbanization, and the development of infrastructures is evident in various places. From new roads, bridges, metropolitan areas, and public transportation systems, the country's rapid development helps improve the quality of life. Therefore, investing in Philippine real estate is ideal as the new investment opportunities will increase further.
7. Multiple Investment Options
Most of all, the Philippine real estate market provides multiple investment options. Investors can choose from residential to commercial properties or invest in mixed-used developments and agricultural land. The diverse options offered by the country empower potential investors to customize their strategies based on their risk tolerance or preferences.
But similar to any other investment, there are risks in investing in the Philippine real estate market. Investors must conduct thorough research and adequate assessment. By doing so, they can make wise investment decisions by understanding the possible challenges, legal regulations, and dynamics of the Philippine real estate market.
Furthermore, investors must consult with financial advisors, real estate, and legal experts who can help them navigate the intricacy of the local market, allowing them to make informed investment choices. These reasons to invest in the Philippine real estate market only serve as a guide. So, it's still best for investors to seek guidance from financial advisers and real estate professionals.