Real Estate in the Philippines for 2022
The COVID-19 pandemic remains a challenging event for most of us as well as the industries and businesses, which then resulted in a heavy toll on our economy. Despite government restrictions and community lockdowns, real estate ranks as the top contributor of the Philippines’ economy with nearly 126 billion Philippine pesos in the second quarter of the year 2021. But what is 2022 in store for this kind of industry?
Restrictions hinder the construction of project developments and sales activities yet investors find other ways to connect to their clients is to sustain revenues. While setting priority the health and safety consideration is in line with the mandated protocols and guidelines by the government. For the past years, property developers managed to adapt to what we call today “the new normal”.
Recovery motion on 2022
According to Bangko Sentral ng Pilipinas Governor Benjamin Diokno, “The BSP anticipates that activity in the real estate market will recover in line with a rebound in overall economic growth in 2022” It is believed that the Philippine real estate industry will recover this year for the government and public become more self-reliant as more Filipinos have been vaccinated in the country. In addition, as projected by Goldman Sachs Group Inc., an American multinational investment bank and financial services company based in New York City, the Philippines will have the fastest increase in gross domestic product (GDP) growth among the Association of Southeast Asian (ASEAN) at 7.3 percent.
The gradual re-opening of on-ground activities of the business and travel borders among countries is one of the opportunities for the real estate market. Establishments such as commercial buildings, rental spaces, and office markets are expected to recover this year, as the workforce are returning to their traditional office operations. Malls and supermarkets begin to welcome consumers thus improving the retail space income. Not to mention the increasing contribution of the remittances of our overseas Filipino workers, more employed individuals, and higher government and consumer spending will robust the state of the economy.
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Real Estate investments to continue on 2022
There is a great demand for high-end residences located in towns during the pandemic. The same bottom number is that potential investors and homebuyers wanted to pandemic-proof their properties and investments. More and more people choose to live in locations near town to ensure easy access to drugstores, schools, offices, hospitals, supermarkets, recreational areas, and other establishments can lower the possible exposure to COVID-19.
Health, wellness, safety, and convenience become the utmost priority of end consumers, self-sustained places and locations begin to be more considerable and attractive with added open areas, green spaces, and parks. Residential condominiums units that offer a huge space and amenities such as yoga facilities, swimming pool, basketball courts, fitness, and wellness gym have also become more desirable. The retail industry has also adjusted to consumer preferences of greener amenities such as gardens, fresco dining, and open-air places.
The demand for residential properties outside Metro Manila is seen not only to small-time buyers but also to high net worth individuals from the city who seek to relocate to unpopulated areas proximately closed to Metro Manila. New infrastructures and low-density projects will rise because of shifted preferences of consumers today. Moreover, infrastructure developments by the government on trains, roads, and bridges allowed commuters for shorter, faster, and less hassled travel times from places of work or cities to spaces outside the city.
The covid-19 pandemic added to the increased value appreciation of farm lots, residential resorts, native houses, and beachside homes, as consumers’ financial, social and mental factors become one of their considerations in choosing real estate investments. This introduced the modernity of living in unpolluted provinces and open areas. Provincial areas are also eyed by investors because of the possible income opportunity it offers such as crop farming, livestock, and hog raising not to mention the price of land acquisition in this area is lower than those near or in the city.
There is also an evident increase in memorial lot investments, because of the promising return on this specific kind of real estate. Compared to the above mention real estate properties that may require regular high maintenance shouldered by the owner, memorial lots on the other hand are fully maintained by the developer if not these are included in the total contract price of the lot. Also, these kinds of investments are easy to liquidate with an expected up to 20% growth increase annually, ensuring a high return on money invested over time. In addition, young professionals choose to invest in this kind of assets for it requires a minimum amount of payment for they offer flexible terms that will suit your payment capability.
Future growth
Numerous new trends and innovations are expected to see in the real estate industry, these new offerings show the trust and reliability of investors and developers in the national and local real estate market even the pandemic. These infrastructures and land developments are an avenue to standardize real estate investment allowing more people to engage in the post-pandemic growth of the industry, regardless of their income ranges and locations.
It is expected that the current norms brought by the pandemic on a more responsible and wiser financial individual will remain the same. People become more sensitive and knowledgeable about where they are putting their hard-earned money this is enough proof of the future growth of the real estate industry. Nonetheless, there is great anticipation of the increasing trend for the above mention assets, and for that reason, many investors choose real estate as an investment.
Conclusion
The covid-19 virus that struck the whole world may be temporary but the impact will remain for a long time and it greatly affect the real estate preference of individuals, not just this 2022 but for the next several years. Yet, the real estate industry will always be a rising opportunity to diversify investment for both the developers and end consumers following the last year’s growth of the sector amidst the pandemic.
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