There’s a race in urbanization all around the world, and the competition is the fiercest in most Asian countries. One of the fastest-growing real estate industry right now is in the Philippines. The country was able to maintain an upward trend since 2010, according to Plan Radar. In addition to real estate investors, the country has been attracting manufacturing investments, too.
The Philippine economy is still growing after almost a decade, and so does the Philippine real estate industry. The Agency for Real Estate Affairs gave the country a strong 8.1 score (1 being the worst, and 10 being the best). Still not convinced? Here are six reasons why investing in the Philippine real estate market is a good idea.
1. Demand for Real Estate
The demand for real estate properties is currently strong right now in the country. This is especially in the commercial, residential, and industrial sectors. The growth can be attributed to the demand for new startups and businesses to get their own offices, as well as freelancers and contractors who work on shared spaces. Demands for commercial spaces are said to be up to 25%.
2. Gamers Are On the Move
The Philippine Offshore Gambling Operators or POGOs are on the move for expansion in the country. And with that expansion comes the great demand for offices. POGOs are one of the driving forces of real estate developments in the country. If they have an upward trend, there’s a great possibility that they will possibly affect the real estate market.
3. Increase in Demand for Luxury Estates
Luxury properties, especially in business centers such as Makati and BGC, experience high demand in 3-bedroom luxury condominium units. According to reports by Global Property Guide, property types such as condominium units, single-detached or attached houses, duplex houses, and townhouses saw significant price improvements in 2018 and 2019.
4. The influx of Ex-pats In the Past Decade
The Philippines is one of the most popular ex-pats options in Asia. Most ex-pats find it easy to integrate their lives among the Filipino locals. According to HSBC head Kris Werner, 61% of ex-pats say that the Philippines is a more welcoming place than their own country.
5. Low-Interest Rates
The interest rate in the Philippines is very low compared to the standards in Western countries. With this in mind, it would be more encouraging to buy real estate properties, as the cost would be lower. Besides, real estate developers in the country are innovative and have financial backups, making the deal more attractive to foreign investors.
6. Economy Is Still Strong
Although the current government is in the bad light due to its drug war, the economic growth is still in green color. The Philippines is still one of the fastest-growing economies in Southeast Asia. The economy is projected to have an upward trend in 2020 and 2021, according to the World Bank.