Real estate is an ever-evolving industry, and the Philippines is no exception. With advancements in technology, changing customer preferences, and growing economic opportunities resulting from globalization, the real estate market of the Philippines is rapidly evolving. This article looks closely at four of the most significant trends likely to shape the Philippine real estate market in 2023. Understanding these trends allows you to stay ahead of the curve and gain a competitive edge as a property owner and investor.
Development of Special Economic Zones
The first trend you can expect to see in 2023 is the further development of special economic zones (SEZs) across the country. The Philippine government has announced plans to increase investment in these areas, which boast preferential tax and tariff policies to attract foreign investment. The purpose of these zones is to help the growth of industries such as manufacturing and export processing, with many SEZs located near ports and airports for improved access.
SEZs are also intended to create jobs, benefiting those who live within their borders and the broader economy. This increased economic activity will further stimulate real estate markets nearby, providing local and foreign opportunities for you.
The Emergence of Eco-Friendly Infrastructure Projects
The focus on environmental sustainability continues to gather momentum in 2023, emphasizing eco-friendly infrastructure projects set to reshape cities throughout the Philippines. These projects include green building initiatives that prioritize energy efficiency, renewable energy sources, and the reduction of carbon emissions. As a result, more buildings will be purpose-built with eco-friendly designs that comply with regulations and standards.
This shift towards sustainable infrastructure projects is good news for you as an investor as it helps ensure your investments’ longevity. Buildings constructed following green building initiatives can help to reduce operational costs over time, saving you money on utilities and making them much more attractive propositions.
If you’re looking for an eco-friendly property, the city of Davao is an excellent choice. Investing in a green building condo for sale in Davao City has never been easier. With plenty of options available, you can feel confident they are making an environmentally-friendly and financially sound decision. These properties come equipped with energy-efficient features such as LED lighting and solar panels, allowing residents to enjoy lower maintenance costs over time. In addition, green features such as natural ventilation reduce the strain on air conditioners, thus creating a healthier environment and reducing energy consumption.
An Uptick in Commercial Real Estate Activity
This year, you anticipate a rise in commercial real estate activity. The Philippines’ economy has steadily recovered from the pandemic, leading to increased demand for office space, retail venues, and industrial facilities. As a result, you can take advantage of this renewed confidence in the market to invest in commercial properties.
What’s more, lower borrowing costs and increasing access to capital mean that commercial real estate opportunities are available at competitive prices. This is creating favorable conditions for both buyers and sellers alike and helping stimulate economic growth across the nation.
This is good news if you’re already in the commercial real estate market and choose to enter it. With the improved economic outlook, there is likely to be increased demand for long-term investment products such as leased properties and sale-leaseback agreements.
This could result in higher yields and more attractive terms for developers and investors alike. At the same time, commercial real estate developers are likely to take advantage of this renewed confidence in the market by offering upgraded amenities, technological advancements, and improved sustainability standards. This will help make their properties more attractive to buyers and tenants while also helping them meet their environmental goals.
Increase in Multi-Family Rentals and Co-Living Spaces
You can anticipate a notable upsurge of multi-family rental units and co-living spaces in the real estate industry over the next few years, setting a new trend for 2023. This can be attributed to various factors, including rising home prices, increased population density, and changing lifestyle preferences. Multi-family rental units are an excellent option for those looking for a more flexible living arrangement.
This type of property is often cheaper to rent than buying a single-family home and offers tenants the chance to save on utilities, maintenance, and other expenses. For investors, there’s potential for significant returns as these properties generally have higher occupancy rates and lower vacancy periods. Meanwhile, co-living spaces are gaining ground as a popular alternative to traditional accommodation. This type of communal living typically consists of small private bedrooms and shared common areas like the kitchen and lounge.
Co-living provides tenants with an affordable way to live in desirable locations and access to amenities such as fitness centers, laundry services, and social activities. For investors, co-living spaces are attractive for many of the same reasons as multi-family units. They offer a good return on investment and can be located in sought-after areas, which helps to drive demand. Another benefit is that these properties tend to have shorter lease periods, which can often be easily converted into traditional rental units if the demand shifts.
2023 promises to be an exciting year for Philippine real estate, with plenty of opportunities available for investors and buyers alike. From the development of special economic zones to multi-family rentals, many trends are set to shape the market this year. Understanding these real estate trends can help you make the most of your investment, whether you’re looking to buy, rent, or invest in property.