By Anna Patricia Princesa on June 6, 2016
The Fates have spoken! The continuous development of the country’s economy is definitely garnering a pool of new investors itching to take part in this progress, and predictions say that a great part of the economic development will come from the continuous and prolific growth in the real estate industry.
With condominiums and high-rise buildings popping up like mushrooms around almost every corner, it’s not hard to tell that this prediction is already happening. Development in the real estate industry penetrates a number of sectors such as office, retail, residential, and industrial.
So whether it be finding home owners looking for a condominium or companies looking for new office spaces, there will always be an opportunity for growth in the real estate economy, and a big opportunity for you to earn more on the side or full-time for many years to come—no matter how small or big. Here’s why.
The Growing Economy
It’s no secret that the Philippines’ has been doing a pretty good job in climbing the economic ladder.
With the country ranked 14th in the Asia-Pacific Region for economic growth this year and also ranked by CNN as the 4th fastest growing economy in 2015, accompanied by a jump from a GDP from 5.6% to an impressive 6.4% in only a quarter’s difference, investors are flocking and lining up at the door.
Economic forecasts state that this upward trend will continue to grow with the growing numbers of inbound investments into the BPO (Business Process Outsourcing) industry. And with the Philippines ranked 7th among the 51 countries as prime BPO locations, these investments will continue to sustain this momentum for many years to come.
But what does this mean for a person who wants to go into real estate? Because of the rapid growth of the BPO industry, there is a constant need to place these companies (literally) on the map. Congestion and high rates of office spaces in the central business district in Makati and the new emerging business hub in Bonifacio Global City opens doors for the development of other areas in Metro Manila. This is definitely good news for people who want to invest in developing properties, have existing properties waiting to be leased, and people who are waiting for job opportunities in and outside the central business district.
Continuous Appreciation of Land Value
Whiskey and wine aren’t the only things that get better (and more expensive) as time goes by. Land value has continued to appreciate over the years and since the Philippines has become one of the prime locations for companies to invest in; the price of land and leases will only continue to go higher.
The rising economy has seemed to guarantee a steady influx of foreign investors, calling for more job opportunities in the central business district causing the residential and commercial property market in the central business district to continuously surge.
Investors have also started recognizing other areas such as the Bay Area and Quezon City as prime locations for business outsourcing firms due to the large number of potential employees residing in the provinces near the area.
So if you live around these emerging areas for business, whether it’s through a big commission, landing a company for a long-term lease for your property, or simply finding a job nearer to you, it’s sort of a win-win situation, isn’t it?
Less of the Manila Traffic
Tired of always having a mini-expedition and arriving at work as if you’ve just gone through a battlefield (also known as the EDSA and the MRT)?
If you feel like your daily commute is like traveling from The Wall to King’s Landing on a daily basis, then this might just be the answer to your prayers.
With the incoming administration’s plans of decentralizing Metro Manila, more investments are coming in in developing cities and provinces outside the central business districts, transforming cities as far up north from Clark to down south as Davao. Predicted fast-paced urbanization and residential development are said to be the key sources of in the growth for the Philippine real estate market.
The developing commercial and residential real estate market together with the upcoming plans of decentralization will become an advantage for people living outside or far from the central business districts. It opens opportunities for those living not only in the “northern” or “southern” part of Metro Manila, but as well as the northern and southern part of the country—in Luzon, Visayas, and Mindanao. This also opens the doors for employees to earn a living within a comfortable distance from their home, spending less time stuck in traffic and more time with the family.
Whether it’s simply earning commissions from selling condominium units on the side, helping a company in the development of different areas in the Metro and country, or simply leasing your own properties to interested parties, the real estate industry is a good and steady avenue to take advantage and take part in this economic boom that’s bound to grow in the coming years.