The Philippine real estate for 2020 has been hit by a number of unforeseen events that will continue to impact the local economy. However, even with the impact of the pandemic, there’s a strong possibility that the real estate industry will still thrive during these trying times. There are different trends emerging from behind the scenes and these could prove advantageous for many in the industry. Here’s the outlook you need to check out.
Real Estate Investment Trusts
Thousands of property companies are looking into real estate investment trusts. This is right after the revised rules were deployed back in January. Real estate investment trusts can democratize the Philippine property market for the better. This gives small investors the unique opportunity to participate in various high-value real estate assets alongside big league companies and corporations. Real estate investment trusts can promise sustainable long term growth for the Philippine economy through the power of proper investments.
The real estate industry will benefit from this rush in the coming years. It can potentially give more sectors a chance to expand outside metro Manila and allow for more jobs to reach the province.
BPO employees and companies contribute to the growth of real estate locally. Companies require office space and rentals are emerging from more economic zones. and central business districts. The rental rates are highly competitive and it’s possible to get a good price even as vacancy rates increase. Take note that the BPO industry will continue to drive the growth and demand for office space up to 7 percent annually according to researchers from IBPAP and Everest. They’re also the ones contributing to the fastest growth when it comes to employment rate until 2022. This is clearly evident in the healthcare, animation, and game development industries locally.
Coworking brands have seen the benefits of having their own companies set up in Manila. Many self-employed individuals are enjoying coworking spaces to promote productivity and professionalism that can’t be achieved at home. Many investors are allowing rentals for many single-office tenants up to multiple occupants. It’s a much cheaper alternative to a full on building rental. Many freelancers, startups, entrepreneurs, and BPOs will surely enjoy the plug and play setup of a coworking space.
Traffic is a problem for many Metro Manila citizens. A viable solution for coworking brands are coliving spaces. These spaces are perfect for employees and young professionals looking for a premium living setup near their central business districts or offices. Many developers are also capitalizing on the trend of coworking and coliving. Brands like SM and Ayala are setting up spaces near these business districts or just at the border for conveniences.
Real estate companies are becoming increasingly aware of the environmental impacts of large construction projects. Many more companies are looking into environmentally sustainable designs, solutions and systems when it comes to constructing and operating the buildings. These standards are usually based on the Leadership in Energy And Environmental Design. Up to 300 buildings in the Philippines are implementing these guidelines. Half of these buildings are LEED-certified which can satisfy the demands of selective tenants. LEED-certified buildings are not only environmentally friendly but they can also feature premium construction.
Growth Beyond Manila
E-commerce markets are also emerging locally. There’s an increased need for logistics, warehouses, and sorting centers. It can be forecasted that this next wave of growth will be outside of Metro Manila. North Luzon and Calabarzon are prime targets for these opportunities. This could potentially become the next hubs for logistics, thus opening up more opportunities for work.
If more workers migrate in the provinces, more real estate opportunities will open up. Residential development on a budget for provinces is perfect as the cost of living is much lower there. This will encourage growth in various provinces, which is the key to a better future locally.
High-end amenities have always been trendy. However, before such facilities dominated locally, people were looking for affordable housing that is inclusive of amenities not normally found in typical real estate development sites. Now that more expats are staying in Manila, the growth of high-end condos rose in popularity. Manila’s residential market continues to grow. Many people still want the convenience of being near their office while still enjoying high-end amenities. Many foreign buyers and high-net worth personalities still demand such prime residential properties. It’s advisable for real estate companies to satisfy this need to open up more opportunities.
The Philippine real estate this 2020 may be hit with a few challenges but it’s still pointing towards significant growth. Many businesses and future home or condo owners will still have a variety of choices to pursue. Those who are looking for sustainable income will also enjoy this influx of profit and opportunity in the coming years. The key to adapt to these changes is to get creative and follow the trends.