Securing a Stake in the Evolving Philippines Property Market
Alveo Land is a Business Reporter client.
The growth of the global housing market in 2020 and 2021, when other markets were suffering the effects of the Covid-19 pandemic, illustrates not just its resilience in the face of crisis, but also the ability of property developers to respond to the changing demands of buyers and renters.
As global housing market expansion accelerated—rising from 1.8% in 2019 to 3.6% in 2020, and growing again in 2021—buyers became more particular in their demands, according to research from CaixaBank. They wanted more than just a place to live or work. They wanted space and comfort, proximity to parks and nature, a sense of community and the knowledge that the property they inhabit is sustainable.
Real estate developers who pivoted to deliver on these changing demands have prospered, and they now provide enticing prospects for investment.
Exciting investment opportunities in Philippines real estate
The Philippines has one of the highest population densities in the world. Demand for housing is accordingly high, but real estate market saturation is low, with a relatively limited number of developers competing for substantial business opportunities that hold significant growth potential.
Along with its high demand for housing, the country also has the capital to support that demand. “We have a growing population that is matched by an increase in purchasing power,” says Rex Mendoza, a key financial and real estate investment expert in the Philippines. “With this, we expect the Philippines real estate market to remain robust in the near future.”
Although the Philippines market has had a complicated journey over the past four years, the outlook for 2022–2023 is good. Employees are being encouraged to return to their workplaces, meaning demand for office space will rise. One professional services and investment management company expects rents to increase by 1.5% and real estate prices to rise by 2.7% within a year.
Meanwhile, the winding down of global Covid-related travel restrictions limiting cross-border movement means that foreign employees will return to the Philippines in greater numbers. That will drive up demand for rental properties further, and, in turn, increase rental yield.
Maintaining a diverse portfolio
Anyone looking to invest their money for the first time will be told one thing: Diversify your investment portfolio. That is the surest way to minimize risk.
The same goes for the property market. Particularly during times of economic uncertainty, a real estate developer with properties across the range of sectors and types—commercial and residential, property to buy or rent, vertical or horizontal—is spreading their risks, just as a careful investor in the stock market would.
Ayala Land, the largest and most diversified property developer in the Philippines, is one such example. Its portfolio includes shopping malls, office developments, residential buildings, hotels and resorts across the country. It has also developed large-scale mixed-use properties that serve all sectors of the market.
Living well with security, sustainability and community
Alveo Land is Ayala’s upmarket development arm, now celebrating its 20th year in the industry. Alveo is a prime example of how developers are responding to changing property demands, with every facet of its buildings carefully planned to ensure high-quality living and working experiences around the country.
This approach is exemplified by Alveo’s projects in ARCA South. This new 74-hectare business and lifestyle district, being developed by Ayala Land, will offer retail centers, pocket parks, sustainable amenities and access to an intermodal transport system, along with a diverse range of residential and office properties. It is, Mendoza says, “a master-planned estate that will be a district of the future.” At the heart of Metro Manila, it is one of the top urban areas in the Philippines that is ideal for investment.
Alveo’s Tryne Enterprise Plaza, one of ARCA South’s standout developments, will offer employees a sustainable and healthy lifestyle. “It has flexible, open spaces and a 100% glass facade that will allow the entry of natural light while controlling the heat due to its double-glazed feature,” Mendoza says—an indication that Alveo is responding to growing concerns about the property market’s impact on the climate.
Thinking ahead in an evolving market
A house shouldn’t just be a place to live or an office just a place to work. Rather, they should enrich the lives of the people they serve and help stimulate local economic growth. This is the guiding philosophy behind Alveo Land’s vision for the future of the Philippines real estate market.
Demand is growing for developments of the type that Alveo specializes in. This is the time—and the Philippines is the place—to diversify your investment portfolio for the future.
This article originally appeared in Business Reporter.
Image: iStock id1292636705
