2022 Market Trends in the Philippine Real Estate Industry

We only have nearly 5 months until the end of 2022, and we had seen how our country was able to adapt to the effects of the pandemic. Numerous new trends and innovations were introduced in the early months of the year in order to adapt to the emerging real estate industry demands. The trends are how we show investors and developers that we can earn their trust and partnership in the midst of a pandemic.

The Philippines had a rough start in 2022 due to an increase in daily positive COVID-19 cases caused by the Omicron strain. However, as infection rates began to plateau and decline, the government relaxed restrictions, bringing the country back to what appeared to be pre-pandemic normalcy. As a result, the demand for warehousing, logistics, and supply chain solutions has increased. Recent global events, such as the non-synchronized opening of key port destinations and volatile oil prices exacerbated by the ongoing Russia-Ukraine conflict, are likely to put a damper on the manufacturing and logistics industries’ continued growth.

1. Dollar-earning Filipinos are Expected to Increase their Real Estate Investments
As the value of the Philippine peso falls in tandem with the current US dollar exchange rate, the amount of money sent to families by our dollar-earning citizens shoots up. Dollar-earning Filipinos include but not limited to the following: those who work in the Business Processing Outsourcing (BPO) industry, Online Virtual Assistants, and Overseas Filipino Workers (OFW). It is easier to own a condominium or buy a house when you have more financial resources. It is entirely up to you whether this is a private space or a business opportunity.

Following that, more real estate investment is expected to be driven by the BPO industry in 2022. The leasing of condominiums and other properties is expected to increase over the next 18 months as more foreign companies turn to the Philippines for offshoring and outsourcing.

Furthermore, as our Gross National Product (GNP) reports that the Philippines is one of the world’s largest recipients of foreign remittances. Overseas Filipino workers sent $29.9 billion to their families in the Philippines in 2020. The figures continue to rise year after year, allowing many Filipinos to purchase real estate properties.

2. More Foreign Investors for Real Estate
Foreign investments in the country totaled Php36.49 billion at the start of the year. The United States pledged Php13.4 billion, while Taiwan and Japan pledged Php4.4 billion and Php4.3 billion, respectively, according to the Philippine Statistics Authority. Furthermore, approved projects are expected to create 24,239 jobs.

According to experts in order to compete in the new normal setup, some of the industry’s basic operational and strategic assumptions must be seriously reconsidered, which is aimed to capture emerging growth trends amid the various headwinds that have so far defined early 2022, stakeholders in the Philippine real estate industry must embrace a paradigm shift. The recent amendments to the laws governing foreign investments and retail trade liberalization are timely contributions to the government’s effort to stimulate economic growth by relaxing the requirements and limitations that prevent much-needed foreign investor participation.

3. Number of Real Estate ‘Millennial’ Buyers Further Increases
Those born between 1981 and 1996 are referred to as “Millenials,” which means “a person reaching young adulthood in the early twenty-first century.” They are stereotyped as narcissistic, lazy, and entitled, as they frequently change jobs and enjoy life through shopping, travel, and gadgets. According to Philippine Statistics Authority data, millennials (aged 25-34) account for approximately 28 percent of our country’s workforce.

According to surveys, the majority of potential home buyers are millennials aged 25 to 34. This can be attributed to their proficiency with technology. The coronavirus pandemic appears to have influenced their spending habits, prompting them to invest in home ownership. According to a Forbes article, technology is important in the home-buying process because millennials use the internet and mobile devices extensively when researching their options. It also highlighted the preference of millennials for suburbs over cities. Due to the convenience and accessibility provided by condominium properties, real estate is an appealing investment for millennials.

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