This 2020, the outlook for real estate in the Philippines remains bright, which puts the sector in an unrestricted growth trajectory for almost a decade now.
In its Emerging Trends in Real Estate Asia Pacific 2020 report, the Urban Land Institute (ULI) Philippines even tagged Manila as one of the “best places in the region to invest and develop” in 2020.
This unprecedented growth is primarily driven by the country’s robust economic performance, coupled with steady remittance flows from overseas Filipino workers (OFWs), the stronger purchasing power of consumers, and stable revenues from business process outsourcing (BPO) companies.
These factors fuel not just the growth of different property segments, but also the emergence of new ones. New savvy investors, who bring with them new demands and expectations with regards to living and working spaces, will help transform the property landscape this year.
Amidst this positive outlook, here are the trends that will further transform and propel the sustainable growth of real estate in the Philippines this 2020.
Innovation and disruptive technologies are changing the way people work, thereby influencing how companies operate and treat their real estate. Cloud technologies and mobile devices are now the de-facto tools of a highly skilled modern workforce. Given this “new normal” in the workplace, there will be continued demand for flexible office spaces in the long term.
Flexible workspaces are any type of real estate that enables agile work through its ability to help drive collaboration and deliver cost savings, according to real estate consultancy firm Jones Lang LaSalle (JLL) Philippines. Flexible workspaces, also known as “plug and play” offices, remain attractive to newcomers, small businesses, and BPO shared services that benefit from its pay-as-you-use office setup.
In 2020, even as landlords and developers maintain their partnerships with co-working spaces and serviced offices, they will likely develop their own flexible workspaces to keep up with the changing needs of corporate occupiers and other office tenants.
Green building initiatives present a good investment case in 2020, especially as sustainability is fast becoming a priority for investors. Green building certification is not just mandated by global investors, it is also good for differentiation and protection, according to ULI Philippines.
Thanks to the confluence of new building concepts and technological innovations, more green building projects are likely to rise in the Philippines through 2020. Real estate firms bent on strengthening their green building initiatives will benefit from new technologies that reduce negative environmental impacts.
These new technologies can be integrated into building operations systems and improve energy efficiency by automating the management of heating, cooling, and ventilation, and the detection of malfunctions. Integrating these sustainable features into buildings not only reduces overhead costs but also attracts occupiers and tenants who are willing to pay a premium for green spaces.
High-net-worth individuals (HNWIs), young professionals, OFW families, and upgrading families will continue to drive demand for residential properties in 2020, according to JLL Philippines. However, housing models continue to evolve due to the rising costs of urban living and the changing lifestyle preferences in the city centers.
For example, students and young professionals, even upgrading families, are dissuaded from living in traditional apartments and housing due to the high cost of rent, deposits, and furnishings. As such, there will be an increased demand for shared housing and co-living spaces in 2020.
Students and young professionals are willing to spend more on co-living facilities near their places of study and work than to spend on transportation. Upgrading families, on the other hand, are now favoring purpose-built multi-family developments in the city centers, especially those that incorporate features such as childcare facilities, cooking areas, and private lounges.
As such, landlords and developers must address this increased demand for shared housing and co-living spaces, particularly the need for condominium projects near universities.
This 2020, whether you’re looking for a new home or a flexible workspace, Avida Land has got you covered. With 93 projects in 25 strategic locations nationwide, Avida Land helps you find living and working spaces that let you live a meaningful and balanced life. Learn more at avidaland.com.