In order to meet the demands of the developing real estate business, several new trends and innovations were introduced in the first few months of the year. The trends are how we demonstrate to financiers and developers that we are able to gain their confidence and cooperation even in the face of a pandemic.
Due to an increase in daily positive COVID-19 cases brought on by the Omicron strain, the Philippines experienced a difficult start to 2022. But as infection rates started to level out and fall, the government loosened its regulations, returning the nation to what seemed to be pre-pandemic normalcy. As a result, there is a higher need for supply chain, logistics, and warehousing solutions. The ongoing growth of the manufacturing and logistics industries is anticipated to be hampered by recent global events, such as the asynchronous opening of important port destinations and variable oil prices.
Additionally, one result of the pandemic's contemporary standards is a more mature and financially informed Filipino population. People are choosing where they put their hard-earned money with greater care and understanding, which is positive for the future expansion of the real estate sector. Nevertheless, this article describes the 2022 real estate market trends going to year 2023 in the Philippines.
Income-producing
It is anticipated that Filipinos will increase their real estate investments.
The amount of money transferred to family by those of us who earn US dollars rises as the value of the Philippine peso declines in step with the current US dollar exchange rate. Filipinos who make money include, but are not limited to, individuals who work in the BPO sector, online virtual assistants, and overseas Filipino workers (OFW). When you have more money, owning a condo or purchasing a home is simpler. Whether this is a personal space or a business opportunity is totally up to you.
After that, the BPO sector is anticipated to generate an increase in real estate investment in 2022. Over the next 18 months, leasing of condos and other properties is anticipated to rise as more foreign businesses choose the Philippines for offshore and outsourcing.
Furthermore, the Philippines is one of the largest recipients of international remittances, according to our Gross National Product (GNP). In 2020, Filipino expatriates sent $29.9 billion home to the Philippines. Year after year, the numbers increase, making it possible for many Filipinos to buy real estate.
An increase in foreign real estate investors
At the beginning of the year, foreign investments in the nation totaled Php36.49 billion. According to the Philippine Statistics Authority, the United States contributed Php13.4 billion, Taiwan pledged Php4.4 billion, and Japan pledged Php4.3 billion. In addition, 24,239 jobs are anticipated to be created through authorized projects.
Experts claim that some of the industry's fundamental operational and strategic presumptions need to be seriously reconsidered in order for it to compete in the new normal setup. In order to capture emerging growth trends amid the various headwinds that have so far defined early 2022, stakeholders in the Philippine real estate industry must embrace a paradigm shift. The government's efforts to spur economic growth by easing the procedures and restrictions that obstruct the involvement of much-needed foreign investors have benefited from the most recent changes to the laws governing foreign investments and retail trade liberalization.
Development of Eco-Friendly Co-Working Spaces
The capacity to fill voids in vacant rooms to stimulate creativity without using up much space is one of the challenges the pandemic has given to interior designers. These interior designers consistently planned co-working spaces as one of their ideas to help businesses prepare for continuity and rearrange their personnel while lowering real estate expenditures like rent. Its capacity was decreased, buffer zones were established, and cleaning and hygiene procedures were strengthened in order to comply with social-distancing regulations.
Businesses in Metro Manila have been compelled by the epidemic to adopt sustainable workspaces, driving up demand for office space. In fact, it's anticipated that 37% of the brand-new buildings that go up in the upcoming years will be ones that have received wellness certification.
The beginning of a change toward sanitary remodeling is what's exciting about this. Iron and steel components will probably be replaced by copper, which is more environmentally friendly and has antimicrobial qualities. Ventilation systems will be put in place to guide airflow from the floor downward rather than upward. Additionally, the pandemic has made hand sanitizers a must in the workplace.
The number of 'Millennial' buyers of real estate keeps rising
"Millenials," defined as "a person attaining young adulthood in the early twenty-first century," are those who were born between 1981 and 1996. Because they often switch occupations and enjoy life through buying, travel, and electronics, they are portrayed as selfish, lazy, and entitled. The workforce in our nation is made up of roughly 28 percent millennials (aged 25 to 34), according to data from the Philippine Statistics Authority.
The majority of prospective homeowners are millennials between the ages of 25 and 34, according to studies. This can be ascribed to their technological expertise. They seem to have changed their spending patterns as a result of the coronavirus outbreak, investing in property ownership. A Forbes article claims that because millennials spend a lot of time exploring their alternatives online and on their mobile devices, technology is crucial to the home-buying process. It also emphasized the millennial generation's preference for suburbia over cities. Condominium properties offer convenience and accessibility, making real estate a desirable investment for millennials.
Microcities' Growth
Microcities are "cities inside city" created to appeal to the needs of millennial citizens, like Cebu IT Park in Cebu. These are groups of homes and businesses built to offer facilities like shopping centers, gyms, salons, and the like. These locations are outfitted with state-of-the-art facilities and were created to accommodate modern requirements. Developers have created neighborhoods where millennials, who frequently change jobs, may live, play, and start a family all nearby their place of employment.
Technology-based microcities are constantly expanding, opening up new commercial and employment prospects. The creation of new sources of employment and growth is essential to sustaining competitiveness, eliminating poverty, and boosting shared wealth in order to lessen the effects of the pandemic. Traditional manufacturing and routine cognitive skills jobs are disappearing. Technologies such as "urban tech" and "smart cities" are changing how citizens engage with city services and move about in public areas.
In conclusion, the real estate market in the Philippines is recovering from a pandemic, but the future is still unclear. Local real estate experts forecast that the property sector will experience sustained growth in the upcoming years, with both the public and private sectors gradually advancing their innovations to usher in economic recovery by luring investors and developers, despite rising oil prices, taxes, and building material costs.