2023, what a year has it been for all of us? There were ups and downs but we made it at the end of the year and an opportunity to start something new. This new beginning can also be applied in the Real Estate Industry. New preferences and trends are fast approaching and like any other businesses out there, to be in the market, you should see the updates in the industry. In this article, we will tackle different segments of the Real Estate Market that cover residential and commercial properties and their respective subsections. We will also give you some thoughts from the CEO of HousingInteractive Mr. John Riad about his insights into the Real Estate Market and his projections about the future of his company.
Residential Market
Let’s start with the residential properties that cover houses and condominiums. Currently, we can see an uptick in property appreciation from the business districts in key cities like Makati, Taguig, Mandaluyong, and Muntinlupa. Colliers Philippines also reports that there will be 9,620 condo apartments that will be available this year. Residents will also continue to prioritize living close to prominent business districts like Makati Central Business District (CBD), Ortigas Business District, Bay City, and Alabang Business District. Housing developments like villages and subdivisions are also in a steady growth rate. Based on the study made by Statista, the housing sector will have increased by 2.06% from this year to 2028. This is in correlation when I asked Mr. Riad about his projections for the residential sector for 2024. He said the market will continue to grow and so is the demand. Actually, during 2023 he didn’t expect the rise of residential properties that gained HousingInteractive its biggest rental in the company’s history.
There is also a focus on boosting the country’s tourism sector and the government targets to have 7.7 foreigners visit the Philippines. This aim could benefit individuals who like to invest in top tourist destinations like Aklan where Boracay is located, the serene beach of Batangas, the captivating ambiance of Cebu and Bohol, and the staggering sight of Taal Volcano in Laguna. These provinces are only some of the places where the property market can see growth from the government plan on tourism. The residential market of the Philippines has a long way to go with recent developments in the north like the New Clark City in Pampanga and Bulacan where the New Manila International Airport and the Metro Manila Subway is currently under construction. Several townships and vertical developments in South Luzon such as Cavite, Laguna, and Batangas. Mr. Riad has high hopes that it will drive more people to these locations and in turn boost the Real Estate Industry even more in the residential sector. With these developments underway, one thing is for sure: the residential market is solid and up for another adventure for families, professionals, and tourists that will spark new memories in the Philippines.
Commercial Market
The commercial market encompasses 3 categories such as offices, buildings, and warehouses. We will delve into each one and see the projections we have for this year. In office spaces for sale and rent, we can see a rise in demand despite the work-from-home setup that we see today during the start of the pandemic. Based on the article by the Philippine Star, the office property market will rise in demand for about 300,000 square meters that is just in Metro Manila. If you are a business-minded individual you might want to research more about this. However, the state as of today speaks for itself that the market is alive and so are the businesses that are headquartered in these commercial properties.
I asked Mr. Riad about his opinions about the commercial market for this year and he said that amidst the rise of work-from-home (WFH) set-up, both commercial properties for sale and rent will be on a steady rise. Also, companies need to adjust for WFH because it is not going anywhere. The commercial properties for sale and rent will boon due to the recent public infrastructure that the government is currently implementing. There are at least 6 railway networks including the ones that are currently under construction namely MRT-3, MRT-4, MRT-7, LRT-1, LRT-2, and the Metro Manila Subway. LRT-1 will have an extension that will extend to Parañaque, Ninoy Aquino International Airport (NAIA), and the Province of Cavite.
The Metro Manila Subway is one of the most awaited infrastructures in the National Capital Region (NCR) because it is the first ever in the country. Once finished, the subway can connect the New Manila International Airport to the rest of Metro Manila. It will also have a station in Pasig and Taguig City that crosses their respective business districts which can prove beneficial for professionals in the area and also help decongest the avenues. Mr. Riad states the importance of public transportation in every development and it will drive the country’s economy for the years to come.
Property appreciation and investment
The key business districts in Metro Manila like Quezon City Central Business District (CBD), Ortigas Center, Makati CBD, BGC, and Alabang Business District are still spots of the city where appreciation is at its highest. The residential properties in these locations produce a high yield this includes the Bay Area a robust business hub that stretches from Manila, Pasay, and Paranaque. According to Mr. Riad, money will mostly come from direct investments, and with the public infrastructures shortening the travel time from the airport to residential developments and commercial centers, foreign investors and clients are also possible.
The rise of technology and digitalization has also greatly affected the real estate industry in the Philippines. With more people turning to online platforms for transactions and searching for properties, it has become essential for real estate companies to adapt and utilize these tools to reach their target market. Following this, Mr. Riad knows the potential of a work-from-home set-up, and being the first in the online platform in 2001, HousingInteractive still focuses on having more engineers and brokers that will collaborate and stand to serve the common public to find the right property for them.
HousingInteractive is one of the real estate companies in the country that possesses an uplifting attitude toward the future of the Real Estate Industry in the country. Interconnectivity, Accessibility, and Mobility are 3 of the most important factors that people consider whether they are looking for a residential or a commercial one. Residents want their homes to be a part of a community that hasn’t changed. A residential development may it be a single home, a part of a subdivision, or a condominium, people want convenience close to the key landmarks of the city and mostly just beside major thoroughfares and public transportation options.
In terms of commercial properties, business-minded individuals also prioritize interconnectivity more than ever and there are updates in the public infrastructure in the country. Furthermore, the continuous growth in the country’s population and economy also contributes to the real estate industry’s positive outlook. As more people enter the workforce and earn higher incomes, the demand for both residential and commercial properties will increase. This presents a great opportunity for property appreciation and investment, particularly in prime locations such as business districts and urban developments.
But amidst all of these developments, it is important for the real estate industry to also prioritize sustainability and responsible development. With the increasing awareness of climate change and environmental issues, companies must incorporate green and eco-friendly practices in their projects. This not only benefits the environment but also creates a more attractive and sustainable living and working environment for future generations.
In conclusion, the Philippines’ real estate industry has a ray of hope for the years to come. Dozens of developments are in progress in provinces outside of the metropolis that can gain momentum for demand any time soon. The progress on public transportation is a win-win for all of us because it can help decongest the major thoroughfares and cut back the delays that we experience from traffic. Developers and investors have a great opportunity to tap into the growing demand for both residential and commercial properties. Mr. Riad has some takeaway notes and that’s HousingInteractive will continue to grow alongside the industry’s upward trajectory. The team that we have is ever-expanding and still open for people to join the success in giving everyone the home, and property that they deserve. Professionalizing the industry since 2001, that is HousingInteractive.
