Real Estate Trends for Q2 2023
According to a report from Colliers, the Philippine economy grew by 7.6% in 2022, the highest in over 40 years, and it is considered a positive signal for the country’s real estate market. In addition, the country’s housing market is expected to continue improving this 2023 after recovering from the impact of the pandemic.
Consequently, more buyers are looking for properties, whether for personal or business purposes, as the real estate industry has been in constant demand in recent years. However, investors must have sufficient knowledge to identify properties that offer the best home prices, are most likely to obtain positive equity, and are part of the current or ongoing real estate trends, given the wide range and multiple offers of properties available in the real estate industry.
There are several ongoing and/or current real estate trends in the Philippines in 2023.
First, the property market is expected to continue recovering. According to Lobien Realty Group, commercial real estate had an outstanding performance last year, and the consultant organization expects this trend to continue in 2023, especially for warehouse facilities.
Second, real estate prices will continue to increase due to the rise in demand for housing supply and the increase in interest rates.
As a result, real estate investors are advised to prefer real estate investments over stock investments. Third, the supply of real estate will remain high, particularly in the industrial, hotel, office, residential, and retail sectors. Lastly, the Philippine housing market will continue to benefit from OFW remittances, which heavily influence the demand for residential estates in the country.
A Glimpse of the the Philippines’ Housing Market
The Philippine housing market has been a hot topic in recent years due to the steady growth in demand for properties, both for residential and commercial purposes. With a population of over 100 million and a booming economy, the country’s housing market is poised for continued growth and development.
The Philippine housing market offers a wide range of options for buyers, from affordable housing to high-end luxury properties. Developers are responding to this demand by building more affordable homes in areas outside of Metro Manila, where land prices are lower. For example, the Cavite-Laguna-Batangas-Rizal-Quezon (Calabarzon) region has become a popular location for affordable housing projects due to its proximity to Metro Manila and its growing economy.
The Philippine government has also been making efforts to promote the country’s housing market. The Department of Human Settlements and Urban Development (DHSUD) was established in 2019 to oversee the housing sector and ensure that every Filipino has access to affordable and decent housing. The DHSUD is working on various programs and initiatives to address the country’s housing backlog and improve the quality of housing.
One of the challenges in the Philippine housing market is the affordability issue. While there is a growing demand for affordable housing, many Filipinos still cannot afford to buy homes due to high property prices and stringent loan requirements. The government is working on addressing this issue by providing financing options for low-income households and incentive’s developers to build more affordable homes.
As we enter the second quarter of 2023, the real estate market in the Philippines is poised for continued growth and development. Here are some of the significant trends that are shaping the industry in Q2 2023.
Growth of the Luxury Real Estate Market.
The luxury real estate market in the Philippines is expected to continue its growth in Q2 2023. The rise of high-net-worth individuals and foreign buyers has driven demand for high-end condominiums, townhouses, and luxury homes in prime locations. Developers are catering to this market with luxurious amenities like private elevators, swimming pools, and outdoor spaces.
Focus on Sustainable Development Sustainable development
Is becoming increasingly important in the Philippine real estate market. Developers are embracing green building practices that promote energy efficiency, water conservation, and the use of sustainable materials. This trend is expected to continue in Q2 2023, with buyers looking for eco-friendly features like solar panels, rainwater harvesting systems, and energy-efficient appliances.
Continued Interest in Co-living and Co-working Spaces
Co-living and co-working spaces have gained popularity in recent years, and the trend is expected to continue in Q2 2023. Millennials and young professionals are looking for flexible living and working arrangements that allow them to save on rent and live in vibrant communities. Developers are responding to this demand by building co-living spaces that offer shared amenities like kitchens, lounges, and laundry facilities.
Increasing Popularity of Mixed-Use Developments Mixed-use
Developments that combine residential, commercial, and retail spaces are becoming more common in the Philippines. These developments offer residents convenient access to amenities like shops, restaurants, and entertainment venues. Mixed-use developments are expected to continue growing in popularity in Q2 2023, with developers focusing on creating self-contained communities that offer a high quality of life.
Emphasis on Digitalization and Innovation Digitization and innovation
Are becoming increasingly important in the Philippine real estate market. Developers are embracing technologies like virtual reality, augmented reality, and artificial intelligence to enhance the buying and selling process. This trend is expected to continue in Q2 2023, with buyers and sellers looking for more efficient and convenient ways to transact.
In conclusion, the real estate market in the Philippines is expected to continue its growth and development with changing trends and demands. Investors are advised to work with experienced professionals to navigate the market and make informed decisions based on the current and ongoing trends.