Powerful economic momentum is driving the Philippines’ ever-improving economy and the resurgence is something this country has not seen in two decades. Gross Domestic Product (GDP) rose almost 7% in 2012 and there is no indication of a slowdown. In fact, as the U.S. and European economies continued turning upward and interest rates held low, our economy swelled with economic prosperity. As a hopeful homeowner or investor reading to learn about real estate, you might be wise to act now. Purchasing real estate in the Philippines will likely produce high future yields on your investment if this trend continues. And, indicators point to major monetary improvement here at home. This economic progress is profound and a good sign for the country’s future prosperity.
Investment Properties
Property Development
Any property seems to be a good purchase for real estate investors currently; however, location is still key to strong performance. Hasty developing in low demand areas will not produce the return that careful planning will. Knowing when to buy a property through strong research and strategic decision-making will take you a long way.
Rental Properties
According to Global Property Guide research, rental rates in Manila are producing an average yield of 8.72%. Larger condominiums are reaping higher profits for investors and overall, a steady incline in rental rates will be visible for some time.
Much of this is attributable to our country’s business process outsourcing (BPO) industry, which grew exponentially in 2012. This continued growth will contribute to the demand for luxury, upper-end residential, and office properties well into the future. BPO industry growth alone is nothing less than extraordinary, and is projected to double in size by 2016.
Single-Family Properties
A strong residential property outlook exists in the Philippines, however, securing a family residence via bank issued housing loans originated in the Philippines still proves difficult. The mortgage industry is undeveloped and can be difficult to navigate for homebuyers. It takes a great deal of time for loan applications to process, approval is rare, and strict lending terms are standard. Titling and registering land can be equally cumbersome processes.
For this reason, foreign buyers are encouraged to utilize their native lending network in order to procure residential real estate. For Filipino residents, cash remains the preferred method of purchasing property. There are many factors you must consider in deciding when to buy a property. Timing is extremely important and this appears to be the beginning of a long, steady increase in Filipino property values. Buying now might prove to be an excellent investment choice.
With economic growth on the rise, a declining unemployment rate, and inflation on target, consumers in the Philippines are confident and the retail sector is enjoying healthy growth in return. It seems there has never been a better time to invest in Philippines real estate.
