Property investing in the Philippines in 2022 has both opportunities and risks. The country's real estate sector has great long-term potential, with good economic signals already visible. Remittances from OFWs, for example, climbed throughout the most of previous year. Many specialists predict that after the COVID-19 outbreak has passed, the country will recover completely. Of course, the precise timing of this event is unknown. The appearance of the Omicron variety has stymied ambitions to reopen the nation to tourists, and the first quarter of the year might be bleak. Prior to the most recent epidemic, experts at the Japan Center for Economic Research and Nikkei had predicted a 7.1 percent growth rate for the Philippines in 2022.
With success in national immunization efforts and public confidence, the country's real estate market is poised to rebound in the new year. The increased consumer and company confidence, along with the improved immunization rate, could provide the industry a much-needed boost. The country's office, residential, retail, and industrial sectors are projected to profit from the rebound. Despite the introduction of work-from-home (WFH) agreements, certain organizations, such as outsourcing firms, are still looking for office space around the country. Over the next 12 months, there will be lease inquiries, which will help to anchor a rebound in office space take-up both inside and beyond Metro Manila.
Shift Back To Offices and Rise of Employment
In 2022, companies resuming full-fledged in-office operations will raise Philippine property investment. If demand increases, the business process outsourcing (BPO) sector will be a major driver. More office space means more hiring, which has boosted interest in nearby residential real estate in the past. In light of the more transmissible Omicron form, office occupiers are ensuring that their layouts comply to physical distance standards and deploying equipment that ensures frictionless operations and continual clean air. The supply of new office space is estimated to exceed 723,400 square meters.
Residential Properties Increasing in Demand
The most significant shift in Philippine property investment in 2022 will be in the suburbs. People are continuing to trade in their CBD condominiums for homes outside of the city. This is particularly true in Metro Manila, where township expansions to the north and south of the National Capital Region have enticed residents to leave the city. The completion of key infrastructure projects like the NLEX–SLEX Connector and the Central Luzon Link Expressway, among others, has benefited provinces around the NCR. If the "New Normal" and work-from-home regulations become the norm, condo investment prospects in some areas might be harmed. Deals are starting to take up not only inside Metro Manila, but also outside of it, next year.
Colliers International Philippines' newest study estimates that roughly 9,700 units would be delivered in total in 2022, up 18 percent from this year, with prices and rentals expected to improve as well. The government's decentralization policy and large public infrastructure projects, according to Colliers, could encourage developers to build additional master-planned communities outside of Metro Manila.
The coronavirus outbreak appears to have sparked a change in the millennials' purchasing patterns, propelling them toward property ownership. (Millennials are those born between 1981 and 1996 whom can be considered the tech-savvy generation after Generation Z.) According to a Forbes article, technology plays a significant role in the process of buying a home for millennials, who make extensive use of the internet and mobile devices to research their options. It also highlighted millennials' preference for the suburbia over cities.
Condominium properties appeal to millennials because of the convenience and comfort they provide. According to the Philippine Statistics Authority, millennials (aged 25-34) make up around 28% of the workforce in our nation. Furthermore, according to Colliers, millennials' need for mobility and convenience is being met by the demand for integrated communities, which include condos, workplaces, malls, and schools.
Similarly, the increase in remittances from overseas Filipino workers (OFWs) is expected to boost demand for residential properties this year. Cash remittances through banks reached $2.5 billion in November 2021, according to data from the Bangko Sentral ng Pilipinas (BSP). As a consequence, it represents a 5.1 percent rise over the $2.379 billion reported a year before. According to the Philippine Daily Inquirer, cash remittances increased by 5.2 percent from January to November 2021, to $28.43 billion from $27.01 billion. With that, the BSP predicts a 4% increase in cash remittances in 2022.
Tourism, Commercial Property, and Warehousing Boost Back
Local tourism is also contributing to the leisure sector's recovery in 2022, the Department of Tourism estimates. Domestic visits are expected to reach 84.8 million in 2022, accounting for around 90% of all trips taken in 2019, the year before COVID-19 struck. Mall owners are also urged to be flexible in their space utilization. They might, for example, construct pop-up businesses while leveraging existing facilities such as activity centers for vaccination programs and offering eating alternatives such as park-and-dine and al fresco dining. In the next 12 to 36 months, cold storage facilities are expected to boost demand for industrial assets, owing to attempts to increase COVID-19 immunization outside of the city and the rise of grocery and perishable food item delivery.
Moving into a new year means taking another step ahead in terms of technological advancements. Condominiums are anticipated to remain an appealing investment choice for homeowners, according to Colliers, and increased facilities can help them compete in the market. A solid internet connection, work-designated places, and open leisure spaces are among the elements that developers provide that can be attractive to consumers.
Furthermore, Colliers advises real estate developers and investors to optimize their social media presence. This allows the latter to reach out to potential purchasers while the former remains informed about the status of their homes. Developers should also set up virtual showrooms to showcase their property options as well as investment prospects.