A Look at the Top Real Estate Market Trends in the Philippines for 2024
The Philippine real estate market is continually evolving, with trends influencing how Filipinos buy, sell, and invest in property. Economic reasons, population expansion, and technical improvements are all expected to influence market changes by 2024. This blog will walk you through the top ten real estate trends to watch in the Philippines this year, whether you are a homebuyer, investor, or developer.
Why Are These Trends Important for Filipino Homebuyers and Investors?
Understanding the Philippines’ real estate market is essential, especially in a country where property investing is still a crucial wealth-building technique. Being knowledgeable of current market trends enables Filipinos to make informed decisions when purchasing their first house, developing their real estate portfolio, or managing rental properties.
Top 10 Real Estate Market Trends in the Philippines for 2024 (And What They Mean for You)
Here are the most important trends influencing the Philippine real estate market this year, and what they mean for you as a buyer, seller, or investor:
1. Continued Demand for Affordable Housing
The government’s continued attempts to alleviate the housing backlog have fueled the growth of the affordable housing sector. Affordable housing projects are gaining traction in major cities such as Metro Manila, Cebu, and Davao, catering to the demands of young professionals and increasing families.
(News Piece Link): Find out more about the Philippines’ growing demand for affordable housing.
What Does This Mean for Buyers?
This is great news for prospective homebuyers. More cheap housing options are becoming accessible, especially in major metropolitan regions. Buyers should be on the lookout for government incentives and programs that make homeownership more accessible to low- and middle-income individuals.
2. Growth of Sustainable and Green Buildings
Eco-friendly structures are gaining popularity in the Philippines, particularly in commercial and residential developments. To fulfill the increased demand for green architecture, developers incorporate sustainable techniques such as energy-efficient designs, rainwater collection systems, and solar panels.
How Can This Benefit Investors?
Investing in green buildings is a proactive measure. As more businesses and homeowners prioritize sustainability, eco-friendly properties are anticipated to experience increased demand and resale value.
3. Increase in Vertical Developments
With limited land in metropolitan areas, vertical constructions like condominiums and mixed-use buildings are becoming the preferred housing choice. Cities such as Makati, Taguig, and Cebu are seeing an increase in high-rise residential buildings to accommodate the rising urban population.
What Should Buyers Consider?
If you want convenience and accessibility to business hubs, buying in a condo can be the best option. To ensure long-term value, examine the developer’s track record as well as the building’s facilities.
4. Rise of Real Estate Technology in the Philippines (PropTech)
The Philippines’ real estate market is becoming increasingly digital, with companies offering virtual tours, online property listings, and even blockchain-based systems for property transactions. PropTech is making the home-buying process more convenient and transparent for Filipinos.
(News Piece Link): Learn about how PropTech has impacted the Philippine real estate industry.
How can tech-savvy buyers benefit?
If you’re tech-savvy, these services can make your property search easier and more efficient. Virtual tours and online postings can save time, and blockchain technology provides secure transactions.
5. Increasing Popularity of Co-living Spaces Among Millennials
Co-living spaces are increasingly popular, particularly among young professionals and digital nomads. With growing housing prices and a need for flexibility, many millennials are turning to co-living arrangements, which provide shared amenities, cost savings, and a feeling of community.
How Should Developers Respond to This Trend?
Developers could cash in on this rising industry by developing or renovating properties into co-living spaces. To attract this population, these venues should offer modern amenities such as high-speed internet, co-working infrastructure, and community spaces.
6. Balikbayans and OFWs Driving Property Demand
Overseas Filipino Workers (OFWs) and returning Filipinos (Balikbayans) continue to play an important role in the Philippine real estate market. Many OFWs invest in property to guarantee their future or to provide housing for their families back home. This tendency is anticipated to continue in 2024.
What Should OFWs Look For?
OFWs could look into developing real estate markets outside of Metro Manila, such as Pampanga, Iloilo, and Bacolod, where properties are more cheap and have high potential for appreciation.
7. The shift toward mixed-use developments
Mixed-use complexes, which incorporate residential, commercial, and recreational spaces, are gaining popularity in major cities throughout the Philippines. This tendency is motivated by a desire for convenience and access to amenities within walking distance.
How Can Investors Capitalize on This?
Investing in development with multiple uses provides flexibility. These buildings attract a diverse mix of tenants, including professionals looking for a home close to their employment and businesses looking for retail or office space.
8. Impact of Infrastructure Projects on Real Estate
Major infrastructure projects such as the Metro Manila Subway, the North-South Commuter Railway, and the expansion of airports across the country are expected to fuel real estate growth in the areas surrounding them. Properties near infrastructure developments generally increase in value over time.
What Should Buyers and Investors Do?
Keep an eye out for regions where infrastructure projects are currently ongoing. Purchasing property in these areas might be a wise investment because they are expected to see an increase in demand once the projects are done.
9. Growth in tourism-related real estate investments
With the resurgence of the tourism industry, real estate investments in popular tourist destinations such as Boracay, Palawan, and Siargao are gaining traction. Vacation houses, resorts, and rental properties in these places are in high demand, making tourism-related real estate a rewarding investment in
Should You Invest in Tourist Destinations?
If you want a high-return investment, try buying a property in a tourist attraction. Short-term rental platforms such as Airbnb are popular among travelers and have the potential to generate large rental income.
10. Rising Interest in Property Outside Metro Manila
As Metro Manila gets more congested and expensive, more Filipinos are looking at real estate options in nearby provinces such as Bulacan, Cavite, Laguna, and Batangas. These places provide more affordable housing options while remaining accessible to the capital.
(News Piece Link): Learn about the increased interest in properties beyond Metro Manila.
What Does This Mean for Buyers?
For those seeking to escape the city’s hustle and bustle, the provinces provide a tranquil alternative with larger lots and lower pricing. Buyers and investors will benefit from cheaper expenses and potentially higher appreciation rates as these locations grow.
How to Stay Updated on Real Estate Trends in the Philippines
Staying current with these trends might give you a competitive advantage in the real estate market. Whether you’re buying, selling, or investing, staying on top of market trends helps you make the best decisions.
Contact List: Key Resources for Real Estate Trends in the Philippines
- Philippine Association of Real Estate Boards (PAREB): Offers market insights, updates, and resources for real estate professionals.
- Colliers Philippines provides in-depth market analysis, reports, and forecasts on the Philippine real estate market.
- Cushman & Wakefield Philippines specializes in real estate services and offers research reports on market trends.
- Leechiu Property Consultants is a top real estate brokerage that releases regular market updates and property investment guides.
- Department of Human Settlements and Urban Development (DHSUD) is a government agency overseeing real estate and housing programs in the Philippines.
What’s your next move in the Philippines’ real estate market for 2024? Share your thoughts and plans in the comments below!
