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Manila's Resilient Rise: Navigating the 2024 Real Estate Landscape in the Philippines


Date: January 23, 2024

The Philippines real estate market has emerged from the shadows of economic challenges and uncertainties, entering 2024 with renewed vigor and promising prospects. Manila, the nation's capital, stands as a beacon of luxury residential growth, outshining global counterparts. As the country rebounds from the impacts of the pandemic, infrastructure developments, changing trends, and a resilient economy are shaping the landscape of real estate. In this article, we delve into the exciting opportunities and emerging trends that define the 2024 Philippines real estate market.

Luxury Residences: Manila's Ascendancy to the Top

In a surprising twist, Manila has claimed its spot as the leader in the luxury residential market, surpassing global destinations. With a remarkable 21.2% year-on-year value gain, the Philippine capital has outpaced Dubai and Shanghai. This double-digit growth, especially in a global context where residential prices rose by a mere 2.1%, showcases Manila's robust position as a prime destination for luxury living.

Economic Resilience and Infrastructure Development

Colliers Philippines Director for Research, Joey Bondoc, notes that the Philippine real estate market has successfully navigated the challenges of the past, showing resilience in the face of the black swan events of 2020 and 2021. Despite global inflation and supply chain disruptions, the Philippines has emerged as one of Asia's most resilient and fastest-growing economies in 2023.

Infrastructure projects, particularly the ongoing developments in Metro Manila, are key contributors to the positive outlook. The Unified Central Terminal in Quezon City, connecting LRT-1 and MRT-3 systems, is expected to interconnect the capital's elevated railway systems and introduce a new subway system. While delays have been encountered, the Department of Transportation remains optimistic about commencing operations in early 2024.

Residential Homes: Riding the Wave of Transportation Connectivity

The infusion of additional transport systems is influencing the residential landscape. Quezon City, strategically located and set to benefit from the upcoming central terminal, leads the surge in residential projects. However, the trend is not confined to the capital alone, as developers nationwide gear up to expand their residential offerings.

A notable shift is observed in the preference for resort-themed horizontal development outside Metro Manila. With the capital becoming more accessible, developers are upgrading house and lot offerings to cater to the rising demand, particularly in tourist-friendly areas such as Palawan, Bohol, Cebu, Davao, and Batangas.

Expats Return, OFWs Seek Affordable Housing

The post-COVID era witnesses a resurgence in expats returning to the Philippines. Business districts in Metro Manila and major provinces are experiencing a mini-boom as expats explore housing options for themselves and their families. Premium units are swiftly being acquired, with the expat market eyeing property offers ranging from P670,000 to P750,000 per square meter.

On the flip side, Overseas Filipino Workers (OFWs) express concerns about the rising property prices potentially outpacing their income. The OFW market's interest in property ownership grew from 8.1% to 11.7% in Q2 2023. Developers must strike a balance, offering affordable housing options in the price range of P2.5 million to P7 million for a low/mid-income condominium unit.

Office Space: Flight to Quality and Beyond Metro Manila

The demand for office spaces continues to rise, with a focus on quality options. Business Process Outsourcing (BPO) companies are adopting flight-to-quality strategies, directing investments toward safer and more secure markets. Key central business districts (CBDs) like BGC, Makati, and Ortigas are experiencing increased demand, but there is also a noticeable trend of companies exploring less expensive provinces such as Cebu, Bacolod, and Bulacan.

Seesawing rents in different areas reflect changing dynamics. While CBDs maintain their allure, the Bay Area and Alabang district face challenges with higher vacancy rates and lower lease rates due to changes in regulations and shifting preferences.

Hotel and Retail: A Tourism-Led Resurgence

The Philippines' impressive GDP growth amid global challenges has ignited foreign interest in the hotel and retail sectors. Improved infrastructure and reduced travel times contribute to the potential growth of these sectors. The emergence of the country as a desirable Meetings, Incentives, Conferences, and Exhibitions (MICE) venue, coupled with the gradual return of tourists, signals positive developments for hotels and retail areas.

Tourism is making a gradual comeback, with foreign visitor numbers reaching 4.4 million as of October 2023, compared to 2.65 million in 2022. The government's efforts to promote the Philippines as a MICE destination, combined with the successful hosting of events like the FIBA World Cup, underscore the country's readiness to welcome business and leisure travelers alike.

Retailers are navigating the changing landscape, considering the growing popularity of online stores. Malls are advised to rethink space utilization, dedicating areas to activity centers and exhibit halls to attract more foot traffic and encourage collaboration among retailers.

Looking Ahead: Trends and Opportunities in 2024

As we gaze into the future of Philippine real estate in 2024, several trends and opportunities come into focus:

1. Continued Growth: The real estate market is expected to sustain its growth trajectory, bolstered by a resilient economy and ongoing infrastructure projects.


2. Hybrid Workplaces: The rise of hybrid work arrangements is driving demand for new retail space in Metro Manila, with increased employment rates and pay contributing to the expansion of commercial properties.

3. Overseas Investment: International property investors, particularly Japanese firms, are showing increased interest in the Philippine real estate market, signaling potential trade agreements and major investments.

4. Tourism Recovery: The ongoing recovery of the tourism industry is anticipated to fuel demand in the hotel and lodging sector, creating opportunities for investors.

The 2024 Philippines real estate market is a dynamic landscape filled with opportunities and growth potential. From the luxury residential surge in Manila to the expanding office spaces in key CBDs and the revival of tourism, the country is navigating a path of recovery and progress. Investors, developers, and homeowners are encouraged to seize the moment and explore the diverse offerings in this thriving real estate environment. As the market evolves, staying informed about emerging trends and leveraging real estate companies like Bed&Go can provide a strategic advantage in making well-informed decisions in the ever-changing real estate landscape.




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