Philippine Real Estate Market Experiences New Challenges

Higher-Quality, Well-Located Developments in High Demand for PH Real Estate

The real estate industry in the Philippines is currently charting new territories with an increased demand for developments with superior amenities and prime locations. Compared to previous cycles, the PH real estate market is experiencing unparalleled challenges. Let’s learn some new insights from Cushman & Wakefield, an international commercial real estate company, regarding the current trends impacting the real estate environments in the country.
Unprecedented Factors Shaping Real Estate in PHAccording to Cushman & Wakefield, the key factors that affect the real estate market include technological advancements, geopolitical tensions, and pandemic effects. Now, let’s break these down to get a clearer picture of the current landscape for developers and investors in the Philippines:

• Multiple sub-markets emerging beyond traditional CBDs. There are many opportunities right now for occupiers, investors, and developers to diversify their investments in real estate with the emergence of sub-markets outside Makati, Ortigas, and Bonifacio     Global City. With the prolonged economic downturn and pandemic effects, first-rate real properties in CBDs underscored the flight to quality trend. And even POGOs leaving the country, established CBDs remain resilient in terms of occupancy rates with their strong business ecosystems and accessibility. When you spread your investments with these opportunities, you mitigate your risks by not depending on one market.
      
• Flexible office spaces become more in demand. With remote work on the rise, demands for industrial developments, logistics, and housing units in residential districts have also increased to address the needs of growing e-commerce activities. Overall, it is expected that demand for residential properties will skyrocket as economic conditions begin to stabilize. Nontraditional sectors including technology and healthcare also drive these new demands, especially after the pandemic.
      
• Different markets bring highly localized recovery including infrastructure developments. Sector-specific trends and local economic policies are among the growth trajectories that influence the pace of diverse recovery. According to the head of Research, Consulting and Advisory Services, Philippines – Cushman & Wakefield, Claro dG. Cordero,     prolonged high interest rates, and inflation are still huge factors to consider, with crude oil and food prices significantly affecting the country’s economy. While the Bangko Sentral ng Pilipinas is lowering policy rates for more investments, global political trends are complicating this objective.
      
• Higher-quality and well-located property developments drive the future of Philippine real estate. With a more stable and resilient market, occupiers and investors focus on investments in premier locations with robust infrastructure and excellent amenities. Because of that, the value of such assets has increased over the years, while stability attracts new investors who want higher-quality properties. Masterplanned communities will also emerge to resolve cyclical downturns and provide better options for buyers and tenants.

Property developers are creating self-sustaining developments to ensure investors have the exact properties they demand, whether there’s a crisis or not. If you want to sell your property anywhere in the Philippines, register on this site and list your property so we can help potential buyers find it online. At REALS Corporation, you can find expert real estate agents with established portfolios who can help buyers find the best deal.

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