Wednesday, December 1
Home>>Real Estate>>PHL Real Estate 5 to 10 Years From Now
buildings and the overview of Manila Philippines
Real Estate

PHL Real Estate 5 to 10 Years From Now

The Philippine real estate industry is seeing favorable opportunities that will emerge five to ten years from now. This is despite the pandemic’s massive disruptions and difficulties, depressed market conditions, rising vacancy rates, declining rents, and subdued demand.

According to a recent webinar broadcast, “Post-Pandemic Road to PH Real Estate,” the property sector will have a flourishing and a recovery. The webinar also pointed out three reasons why the Philippine real estate market will bounce back better than before. Here are those:

The Pandemic Is a Good Time to Buy

There are opportunities that exist even if you are looking for office, residential, retail, or industrial properties.

In several business districts, leasing prices have plummeted by 20 to 30 percent. This price drop makes it an excellent time to finalize deals while lease rates are still attractive. It’s also high time for real estate investors and residential market owners. The mortgage rates are still competitive and attractive, ranging from 6% to 8%. Additionally, many developers are now offering enticing payment options, including the delivery of equipment or devices.

Meanwhile, retailers who own property should use the time to adopt a brick-to-click strategy. This means that even if you have a brick-and-mortar store, you should also maintain a strong online presence. Thus, despite having low payment and interest rates, retail properties must thrive along with the e-commerce industry.

On the other hand, industrial properties owners should take advantage of the growing demand for cold storage facilities and warehouses. This will be beneficial in the long run.

Change in Investment Trends

Most investors have changed their perception due to the pandemic. Everyone is on the lookout for a way to safety. Because of the prolonged consequences of the new normal, most investors would prefer to reduce their risks. Others are looking for the flight to quality.

For properties to profit in five to ten years, investors are in search of quality recession-proof developments. They also prefer developments with facilities that act as safety nets in the event of another virus outbreak.

There are also massive improvements in some channels. For instance, there is a very strong financial performance for the home renovations market. Given the opportunity, people would still want to develop their properties now so that they will have more value in the future.

Also read: Most Common Home Repairs and What You Can Do

Another good news is the monetary policies established by the Bangko Sentral ng Pilipinas. The BSP supports rising real estate investments and capital values because they help keep interest rates low and inflation rates under control. Many financial organizations also have grown more lenient with their terms. This is a once-in-a-lifetime buying opportunity for investors.

That is not to say that the industry will be the same after the pandemic. In five to ten years, the industry will propel towards recovery. Thus, Philippine real estate will constantly innovate and take advantage of the pandemic effects.

The Emergence of Overlooked Opportunities

Right now, the industrial and logistics sectors have increased demands due to the booming e-commerce market in the Philippines. There is also an increased interest in data centers. As a result, these industries are hailed as one of the bright spots in the real estate market.

Interestingly, no one has paid attention to these sectors for a long time. Now, merchandising industry and logistics are ahead of the other sectors. In five to ten years, these spots are sure to remain.

Additionally, land values have continued to rise across Metro Manila despite the economic recession. This is a sign of how land values could increase as the economy improves. This opportunity is beneficial for companies looking to invest in the next 10 to 15 years.

Emerging business centers, such as those along growth corridors, could benefit the most from this. In addition, with the rising trends of co-working arrangements, companies are eager to lease more space. This move will complement their headquarters with satellite offices near their employee’s homes.

Read: How to Create a Conducive Space

Whether you are in for business or something you would pass on to family members, always choose a property you can hold on to for at least ten years. The growing need for residential, office, commercial, and industrial space, combined with the changes brought on by the pandemic, is transforming the real estate market. As a result, the real estate business is primed to expand in the coming decades – with technology making it easier for people.

© 2021. All rights reserved