Manila: A Hotspot in Luxury Real Estate
Manila rose as number one in market performance in the world of luxury residential property in 2018. This is according to Knight Frank, a property consultancy agency in London.
In the twelve years since its inception, Knight Frank’s Prime International Residential Index (PIRI 100), is an index that monitors the movement of luxury prices across the globe’s top residential markets.
According to the study, Manila’s luxury home prices rose by 11 percent from December 2017 to December 2018. It won over cities such as Berlin, Buenos Aires, Singapore, Tokyo, Paris, and more.
Manila’s rate of growth was said to be driven by the lack of supply and a thriving economy, wherein annual GDP growth exceeded 6 percent in 2018. This then motivated expatriates to invest in real estate back in the Philippines.
Knight Frank also reports that Alabang is poised to be the next hotspot in Metro Manila. The appeal of this area is enhanced by the development and infrastructure projects that have been set in place. These projects include Skyway Stage 3, a road project that connects the north and south of the city, which is set to be complete by mid-2020.
However, while Manila sits on the top of the list, Knight Frank notes that in the 12 years they have been collecting data for PIRI 100, the top performing market wouldn’t usually record an annual growth rate below 21%. This is a big jump from Manila’s 11 percent.
Lastly, the agency notes that this is the 100 residential markets they analyzed had an average growth rate of 1.3 percent— the index’s lowest growth rate since 2012.