A quick drive by any main road will give you a moment’s glimpse into the state of Philippine real estate. Buildings are popping up almost everywhere, from commercial skyscrapers, house and lots, to numerous condominiums. Even at a surface level, these developments are signs that the real estate industry is doing well. More buildings are created by more demand, which means that by association, the implication is that businesses and the economy are also progressing. In 2017, the Philippines had a growth rate of 6.7%, which counts for the fastest growth rate in the region. Simply put, as businesses continue to thrive, employees also continue to earn.
It’s a good time for Philippine real estate, with 2018 projections looking upfor office, retail, residential, and industrial real estate sectors. These are seen to expand, with more infrastructure projects—both private and government-funded—to be completed within the next years. According to PTV News, in 2018, the completion of more projects in Manila alone means the turnover of roughly 52,000 residential units.
With real estate booming, it’s important to choose the right properties that you know will give you well deserved return-on-investments. Although some market factors are beyond your control, there are a few things you can be on the lookout for to make sure the property you invest in will appreciate in time.
Here’s are five valuable things to consider when investing in real estate:
1. Location – In the game of real estate, location is everything. A rule of thumb is that land that is close to the ocean or any other high-priced areas has a higher value. This is because the value of a property is ultimately determined by its possible highest and best use—for instance, land that has enough space to be turned into a commercial shopping area will cost more than land that can be used for a standard family home. Proximity to business centers and commercial centersis also a keyfactor. In the Philippines, development is centralized within cities, and naturally, properties within the area are higher when compared to that of the provinces. Property worth looking at, that isn’t necessarily within the central business districts or cities are also those with a constant flow of people—such as areas near modes of transportation and schools. Although development outside of business districts isn’t as fast-paced, they are also worth a look.
2. Amenities – Almost all condominiums and buildings say they offer world-class amenities, and claim to provide just what you need to unwind and relax. It’s practically standard to have a recreation room, a pool, an events space, a playground, and even pocket gardens. Lifestyle has become a big factor that makes or breaks a potential buyer’s decision. Whether it’s a house-and-lot or a condominium unit, people appreciate additional features that allow them to relax. These amenities are also good differentiating factors of one property from another. Investing in a property that caters not just to the market’s life but also their lifestyle is a big differentiating factor, and the convenience it offers will not go unnoticed by potential buyers.
3. Neighborhood – Another factor that heavily influences the value of a certain property is the area surrounding it. High-end subdivisions obviously cost higher than mid-range, or lots outside of subdivisions, because of the privacy and security they provide. Commercial developments are generally good, as they generate more traffic and business, but places that are already saturated with residential properties might make demand, and prices, go lower for similar units. If the neighborhood is susceptible to any natural disasters—if it floods easily, or if it lies on a fault line—this will also affect its cost. People want to move into neighborhoods that offer them a good home that is safe, secure, and fairly accessible to where they need to be. These should also be considered when choosing which properties to invest in.
4. Economy –Where the big businesses are, big developments also rise. This is why prices for property skyrocket in business districts like Makati and Cebu City, both for commercial and residential properties. Areas where job opportunities are high attract more people, and since the workforceflock to these places, more people are opting to purchase condominium units as halfway houses for them to go home to on weekdays, so they don’t have to brave the traffic. Government attention is also likely focused on these areas, and any major developments in the future mean the value of these properties will appreciate. In terms of the Philippine purchasing power, economists anticipate the depreciation of the peso as giving OFW families more spending money. According to Lamudi’s 2017 Property Market Analysis, OFW remittances reached a high of $2.56 billion in December 2016. This means that should the Philippine peso decrease in value, OFWs and their families will be the prime purchasers of residential units.
5. Credibility – With so many options in the market, real estate buyers are more critical now than they were before, with regards to the kind of deal they’re making. It’s important that the unit is well-made, from the durability of the structure, to its finishing, to the quality of the space, and to its design and features. More than that, the reliability of a certain project depends a lot on the reputation of the developer. Buyers are more inclined to trust names who have been in the industry for a long time, and satisfied buyers tend to recommend similar properties to people they know. Word of mouth spreads easily with technology, and as far as first impressions go, developers who are known to produce sturdy, well-designed homes are worth the extra pesos.
When choosing which property to invest, it’s more comforting to know that you’re in good hands. As one of the leading developers of real estate in Cebu, Primary Homes Inc., is Your Reliable Partner when choosing your next home, or your next investment. With more than 25 years of excellent service, and thousands of happy Filipinos housed, it’s time to take your step into real estate with Your Reliable Partner. Browse through their catalogue and learn more at www.primaryhomes.com.