Citing the adoption of hybrid work arrangement in office spaces, real estate platform Lamudi Philippines said the rental scene in the Philippines is seen to be “vibrant” as the economy reopens in the post-COVID era.
Carlo Rosales, brand head of Lamudi Philippines, said the property group is looking forward to a “strong year of growth” for the Philippines and the Asia Pacific region as different market segments keep a healthy leasing momentum.
“The adoption of hybrid work will lead renters to projects with facilities that support remote work, such as high-speed internet, co-working spaces, and designated home offices,” Rosales told PropertyReport in an interview.
According to Rosales, now that central business districts (CBDs) are bouncing back in leasing activities, this exposed the enduring need to be close to workplaces, transportation networks, and commercial establishments.
PH real estate demand overseas
Based on Lamudi’s The Outlook Quarterly report, the group saw a boom in demand for rentals in the Philippine real estate market because “more and more overseas property seekers zero in on the local arena,” a trend which has been on the rise since the last quarter of 2021.
Out of all seekers abroad, the report cited Singapore as the leading overseas source of inquiries for condominiums and houses for sale.
“Affordable residential real estate continued to contribute a sizable share of leads on Lamudi– condominiums and apartments attracted the largest increase, with listings in lower price segments attracting more than a third of total leads for both buy and rent markets,” it said.
For commercial rentals, the United States and Australia — the world’s largest service outsourcers — formed the majority of the market, Lamudi noted.
“While Singapore-based property seekers were the top seekers of residential property in the Philippines, its vibrant start-up scene and educational interest in the Philippines has led entrepreneurs and professionals to venture into the commercial real estate market as well,” the real estate platform said.
The report also showed that office and retail spaces are at the top of the priority list for these types of overseas seekers. This is closely followed by related commercial properties such as buildings, warehouses, service offices, and co-working spaces.
“These trends all tell the same story: that the Philippines is headed towards greater heights as the economy reopens in the post-COVID era,” Lamudi Philippines Country Head Anurag Verma said in a separate statement.
“More and more developed countries are undoubtedly setting their sights on building a Philippine base, which means that the domestic real estate market is expected to be busier than ever,” Verma added.
Among the property seekers are from cities in the Middle East such as Dubai, Doha, Riyadh, Abu Dhabi; while Singapore sent in the most inquiries for CALABARZON properties in the second quarter of 2022.
With a majority hailing from Cavite and Batangas, the report noted that OFWs are looking to purchase properties in their hometowns or invest in real estate in metropolitan areas nearby. Houses followed by land were the property types most viewed by Middle East-based property seekers.
According to the Philippine Statistics Authority (PSA), OFW remittances in April amounted to $2.39 billion, marking a 3.9 percent growth from the previous year.
With the passage of amendments to the Foreign Investment Act, Foreign Investment Negatives List, Public Service Act, and Retail Trade Liberalization Act, the country is poised to receive more interest from overseas investors — paving the way for positive developments in industries, including the real estate market.
“Needless to say, if we maintain this upscale trend in the property market and other industries follow suit, no one can underestimate the Philippines in terms of economic development. We can only be excited about the future landscape of Philippine real estate,” Verma said.
To learn more about the trends in the property market in the Philippines, you may download The Outlook through this link: https://www.lamudi.com.ph/journal/trends/
