Because of the COVID-19 pandemic, several enterprises in the Philippines have completely collapsed over the last three years. Due to the economic turmoil, investments have deteriorated. Despite the numerous hurdles, the real estate industry has continued to persist and this has capitalized on possibilities. Real estate investors are keenly aware of some of the benefits that the current modern environment offers through groups of similar investment vehicles. Fortunately, the Philippine real estate market forecast is expected to continue its upward trend in 2023. During the COVID-19 pandemic years, the real estate industry has thrived even more. Colliers Global real estate forecast shows that the Philippines’ property market will continue to grow in the next five years, with a forecasted annual growth rate of 5.4%. Throughout this post, you will know more about real estate experts’ forecasts for the next 5 years in the Philippines’ real estate market.
Colliers Report for 1st Quarter
The 2023 Colliers Global Investor Outlook includes understanding from a global poll of our international investor client base, as well as thoughts and viewpoints from Colliers’ top specialists throughout all different markets around the world. Real estate is not resistant to currency fluctuations that affect capital markets. But even so, it is clear that the foundations of real estate stay stable. In the first quarter of 2023, Colliers reported that property recovery in the Philippines is continuously increasing. The 2023 Philippine real estate forecast projects that both value and volumes of real estate properties will increase, with an annual growth rate of 0.7% and 2%, respectively. The forecast on the Philippine real estate market is expected to reach an average value of $900 billion by 2023, which would make it one of the largest property markets in Southeast Asia. Moreover, the report predicts that inflation will be at its lowest level since 2007, while unemployment will fall from 7.7% in 2020 to 6.7% by 2024.
- High Demand for Residential and Commercial Properties
The real estate forecast for the next 5 years shows that the Philippines will continue to have a high demand for residential and commercial properties. The Colliers Global report states that “the Philippines is expected to see an increase in property recovery over the next 5 years due to strong economic growth and increasing demand for residential properties.” The report states that the real estate market is expected to remain stable, with an increase of 4% in the gross domestic product (GDP) and an increase of 5% in population growth. With this, the Colliers report predicts that the number of homes sold will increase by 5% to 8%, with prices remaining stable. Colliers predicts that the Philippine real estate market will see an increase in demand for apartments and condominiums over the next 5 years, while single-family houses will remain more affordable than they have been in recent years. Speaking of affordable housing, BRIA Homes produces houses and lots at very low costs. The price for a two-story townhouse or a single firewall home is estimated to be around Php 7,000 and Php 12,000 per month. The key attraction is that BRIA Homes has over 50 project locations around the country, so you may buy or rent a Bria house almost anywhere in the Philippines! BRIA Homes focuses on producing affordable house and lot deals for average Filipino families that would like to purchase their own homes. It has evolved into the ideal option for regular Filipino workers looking to invest in a high-quality yet affordable house and lot property.
In addition, the secondary market’s demand for condominium units is reviving, as reflected by improved vacancy rates in Metro Manila’s main commercial areas. Following adjustments in 2020 and 2021, rents and prices have improved somewhat. Project completion rates climbed in 2022, but analysts anticipate a downturn in 2023. The current residential pricing index from the central bank supports an increase in condominium take-up for 2022. Nevertheless, the growing confidence of consumers and businesses should help drive demand for housing properties in Metro Manila as well as for developments beyond the National Capital Region (NCR). Colliers predicts that real estate developers should also actively push functionalities that appeal to investors’ post-quarantine inclinations in order to capitalize on curbed needs. Pre-selling projects in Metro Manila’s outskirts have also recently become popular, and property developers should consider the feasibility of introducing new properties in the suburbs. Furthermore, the report predicts that the Philippine real estate market will experience strong growth in 2023, with an increase of 4.6% in total sales volume and 6.5% in total value. This is due partly to the government’s efforts to provide relief and reconstruction efforts after super typhoons devastated many parts of the country in the past year.
- Increasing Trend in Flexible Workspaces
Notwithstanding worries about reduced office space availability from outsourced businesses using flexible work schedules, purchases of commercial spaces in Metro Manila remain on the rise. Following two years of declining net absorption, net take-up was favorable last year, suggesting that actual take-up exceeds the quantity of commercial space abandoned. Additional capacity in Metro Manila is returning to rates before the developments of Philippine Offshore Gaming Operators (POGO), but demand is projected to be fueled by outsourcing businesses. Hybrid work arrangements will almost certainly play an important role in occupiers’ post-quarantine operations. As a result of this trend, Colliers predicts that property investors will see an increase in property values over time as demand for new homes increases with rising incomes and employment levels. Colliers sees prospects for hybrid work arrangement businesses both inside and outside of Metro Manila.
- Continuous Recovery of Philippine Tourism
The rise in both international and domestic travelers reveals that the Philippine tourism industry is on the mend. Reported arrival rates and revenues are exceeding the expectations of the Philippine Department of Tourism (DOT). Colliers considered the resumption of China’s borders, the building and upgrading of even more airport terminals, and the establishment of new accommodations inside and beyond Metro Manila are some factors that help the tourism industry. Hence, real estate businesses as well as other investors have several advantages.
- Increasing Foreign Investors in Philippine Real Estate
Japanese firms have rekindled their interest in the Philippines. Other major trading partners have also pledged to invest in the Philippines, and these pledges should be bolstered by trade agreements that are expected to be adopted by the Philippine Senate. The report also saw significant investments in the food production, e-commerce, and logistics sectors during the last year. The establishment of new industrial parks and amenities in Central and Southern Luzon could give future realtors additional alternatives and possibilities to negotiate more favorable property lease terms and storehouse lease prices.
Branded as the “Industrial Heartland of Central Luzon” for the time being, Bataan has been increasing in popularity among homebuyers and real estate investors. The title is well-deserved, as this formerly provincial region is now a thriving industry and investment powerhouse, home to a host of industrial sites and global corporations. The good news is, BRIA Homes have Empresa Homes Mariveles is located in Mariveles, Bataan, near Barangay Lucanin. Empresa Mariveles has recreational and security features such as a playing area, a park, and a toddler area, as well as secured entryways and exits. Empresa Homes remains dedicated to constructing safe and secure contemporary developments in cities and suburbs where there is a significant likelihood of attracting future homebuyers and real estate investors.
Read more here: Empresa Homes Mariveles welcomes new homeowners in the “Industrial Heartland of Central Luzon”
The Colliers Global forecast for the 1st Quarter of 2023 shows how much you can benefit from investing in real estate properties in the Philippines in the next five years. If you have plans of investing in affordable real estate properties, check out the new properties of BRIA Homes. Visit the BRIA Homes Official Website to reserve your very own BRIA property today!
Written by MC Sanchez
