Emerging 2022 Real Estate Trends in the Philippines
2022 Aug 31 | by Apple Barretto
What are the real estate trends in the Philippines for 2022?
- BPO Firms boosting real estate growth
- Improvements in the country’s infrastructure
- Residential real estate market rising in the North
- Increase in demand for mid-cost projects
- Greater investments from OFWs
- Increase in millennial and Gen-Z buyers
- High demand for master-planned communities
- Green properties rising in popularity
As the country’s economic growth starts to bounce back after the COVID-19 pandemic, several sectors, including the real estate industry, are gradually recovering. And with this recovery comes many changes in the industry. Experts are seeing several bright spots in this year’s real estate trends in the Philippines, and various shifts in the economy and buyers’ demands are leaning towards optimistic growth.
Here are the various emerging real estates trends for developers and home buyers alike to keep an eye out for this 2022:
BPO Firms boosting real estate growth
The BPO industry continue to thrive. And even now as the country is beginning to recover, more employment opportunities are being granted as more multinational corporations come to the Philippines for their offshore and outsourcing activities.
In fact, the demand for BPO office spaces grew to 39 thousand square meters of office space in the first quarter of the year, which was a significant increase from the last. As more BPOs expand their operations, they’re likely to open 160,000 more job vacancies by late 2022.
As the demand for employees increases, the need for other associated assets does too. This includes condominiums, starter homes, and other kinds of residential properties surrounding these enterprises, which we expect to increase in the following year.
Improvements in the country’s infrastructure
As established by the previous administrations, the Build! Build! Build program seeks to upgrade the country’s existing infrastructures. This establishes new main thoroughfares that help connect cities and provinces, to fuel their development and local economy. This helps make rural areas more accessible, and provide quality roads for safer, more efficient travel.
Residential real estate market rising in the North
With the continuation of the Build! Build! Build program, major infrastructure projects like the NLEX-SLEX Connector, North-South Commuter Railway, and the Central Luzon Link, are well underway.
This provides important links to northern areas, such as Pampanga. This in turn drives increased demand for other infrastructure projects, especially developments such as offices, schools, commercial spaces, and hospitals. And with this, the housing market within these areas also grows. This year is a good time to invest in such areas, as their appeal as the next real estate investment hub increases.
Increase in demand for mid-cost projects
There is an increased demand for mid-cost residential properties. Studies show that Filipino families continue to favor those within the PHP 3M to PHP 6M range. This is largely due to the current two percentage point interest rate, as set by the Bangko Sentral ng Pilipinas (BSP), and current purchasing power.
Greater investments from OFWs
There is a continued growth in overseas Filipino workers (OFW) remittances, which is very likely to contribute to the increased demand for residential properties.
Reports from the BSP showed that OFW remittances hit a high of $2.5 billion in November 2021, which was a 5.1% increase compared to the previous year. They also forecast a continued 4% growth in cash remittances for 2022.
Increase in millennial and Gen-Z buyers
The majority of homebuyers this year are likely to be within the millennial and Gen Z age groups, or those aged 21 to 34. This is likely because these generations make up the bulk of the current labor force in the Philippines.
This will lead to a shift on what homebuyers are considering for their homes. We predict that this generation will have a greater demand for convenience and sustainability, compared to previous homebuyer generations. The new generation are more conscious of the environment and patronizes green and eco-friendly housing options, as well as walkable communities and amenities — such as hospitals, groceries, and other necessities — within the same neighborhood.
And, being digital natives, they prefer to do their home search through virtual means. This means they prefer to view potential properties, talk to a real estate agent, check home sales in the area, monitor home values, and much more online. This means offering new services, such as virtual home tours, is vital to reach this new breed of homebuyers.
High demand for master-planned communities
As we mentioned, comfort and accessibility are important for millennial and Gen Z buyers. This makes certain real estate offers, such as master-planned communities, a more attractive investment for them. These homebuyers don’t just want to live — they also want to play, socialize, and settle down in homes that can meet their every need.
Developers must consider providing several recreational and commercial amenities, proximity to transportation hubs, and employment opportunities to homebuyers and real estate investors. These benefits that master-planned communities can offer can make all the difference to these new homebuyers.
Green properties rising in popularity
Likewise, the popularity of “green” communities is also increasing. These are developments where the structures and homes have a significantly reduced environmental impact, and provide the means for healthier, more holistic living.
The pandemic scenario, due to the social distancing and WFH situation that most people lived in for a better part of two years, hastened the adoption of sustainable, green spaces, and it is expected that this trend will be the new normal.
Keeping up with these new real estate trends in the Philippines, Pueblo de Oro offers the best affordable house and lots for sale in our master-planned communities. Located in progressive areas such as Cagayan de Oro, Pampanga, Batangas, and Cebu, our homes offer the gold standard of community living. Contact us today to learn more.