Step into the dynamic world of residential real estate in the Philippines, where evolving trends are shaping the landscape and redefining the concept of home. In this exploration, we delve into pivotal insights that not only reflect the present but also foreshadow an exciting future for professionals within this industry.
Investment Surge Driven by Population Growth:
The residential sector in the Philippines is experiencing a significant surge in investments, driven by the continuous growth of the population. As demographic shifts reshape the nation, developers are closely monitoring and responding to evolving needs and preferences of homebuyers. This trend reflects an increased demand for housing solutions tailored to meet modern lifestyle requirements.
OFWs Powering Residential Investment:
Overseas Filipino Workers (OFWs) play a significant role as an economic force, making substantial contributions to the residential real estate market. In August 2021, remittances from OFWs surpassed US$2.6 billion, reflecting a 5.1% growth from the previous year. Their strong purchasing power empowers them to invest in a wide variety of residential properties across the country. These investments have a notable impact on the real estate market, driving growth and diversity in the sector.
In a recent survey of 10,000 Overseas Filipino Workers (OFWs) conducted in 2019, it was revealed that more than 80% of respondents expressed a keen interest in investing in residential properties in the Philippines within the upcoming 12 months. In response to this significant demand, developers have strategically diversified their offerings, ranging from high-class residential villages to affordable mid-range townhouses. This wide spectrum of options is tailored to meet the diverse needs of this influential group of investors.
Green Spaces and Sustainable Living:
The property development landscape in the Philippines is evolving, extending its scope beyond residential and commercial properties. Collaborating with local government units (LGUs), property developers are directing their efforts towards the establishment of green spaces. This strategic shift underscores the significance of sustainable and eco-friendly living.
Sustainability in Metro Manila:
The development of sustainable and eco-friendly office and residential spaces in Metro Manila is expected to meet high expectations. According to Colliers Philippines, approximately 37% of buildings in Metro Manila from 2021 to 2023 are projected to obtain wellness certification, demonstrating a strong dedication to green technology throughout the development and post-development maintenance phases. This highlights the industry’s commitment to environmental sustainability and wellness initiatives.
The Rise of Microcities:
Step into the future with the emergence of Microcities – self-contained urban hubs that seamlessly blend residential and commercial elements. These innovative developments are redefining city living by offering state-of-the-art amenities within a compact space. The concept aligns perfectly with the evolving needs of millennials who are seeking integrated living solutions. With the rise of Microcities, professionals can expect a dynamic and convenient urban lifestyle that caters to their modern needs.
Existing Model:
The Cebu IT Park in Cebu City is a prime example of a Microcity, seamlessly integrating residential and commercial facilities. This dynamic hub epitomizes the modern urban landscape, catering to the diverse needs of professionals.
As the real estate and property landscape undergoes transformation, it’s crucial to recognize that these trends are not just passing fads but significant indicators of the industry’s trajectory. Whether you are an investor, developer, or aspiring homeowner, the future promises exciting possibilities in the realm of residential real estate in the Philippines. We are committed to providing ongoing insight into the evolving story of the Philippines’ residential real estate sector throughout the year. Stay engaged as we delve deeper into this dynamic industry.
