State of Real Estate in the Philippines

State of Real Estate in the Philippines

by Amiel Pineda for grit.ph

A 2017 Oxford Business Group report stated, “Years of investment and strong economic development in the Philippines have fostered a robust real estate sector that now extends outside of the greater Metro Manila region and into secondary markets around the country.”

This was brought about by the country’s strong macroeconomic environment, where end-users (consumers), investors, and the government play a role in its continuous boom.

On the consumer side, factors like providing housing for employees who want to live near their offices and strong remittances from OFWs (more than 50% of which are invested in real estate), combined with the increasing urban population, are catalysts driving the demand for condominiums and residential units as well as businesses that cater the needs for these homeowners.

For the investors, this increased demand of new residential and mixed-use projects both within and outside of Metro Manila provides them with plenty of good reasons to invest and grow their money.

Lastly, recent projects and developments initiated by the government like the construction of MRT connecting QC to Bulacan, improving road networks, and expansion of airports are some of the factors that should drive the development of real estate projects even further.

To be honest, I didn’t really need to read about reports to prove the ongoing boom in our country’s real estate industry.

In the last few years, I’ve seen multiple constructions for new condominiums and residential units just within our place of residence. I noticed multiple constructions of condos, apartments, and townhouses, both by big corporations and private investors.

Even small businesses pop up like mushrooms around areas that are being primed for development.

What is Real Estate

Real Estate is defined as “properties consisting of land or buildings”. This includes all natural resources within the land.

Types of Real Estate

Residential

Refers to all kinds of homes that include townhouses, condominiums, apartments etc.

Commercial

Includes malls, shopping centers, business offices, educational and health buildings, etc

Industrial

Includes warehouses and buildings or pieces of land where products are manufactured. Buildings used for research, storage, and distribution fall under this category too.

Land

Refers to vacant lands, ranches, and farms. This category includes undeveloped properties.