People who are on the fence about investing in real estate often take years to make the decision, waiting for the right moment to put their hard-earned savings on real estate or work toward getting a home.
If you’ve been putting this decision off for a while, we’ll give you reasons why you should start thinking about it seriously this year. Begin researching about your options, and finally invest in your own home before the year ends.
Here are the top three reasons why buying a house in the Philippines is one of the best decisions you are going to do this year.
- Positive real estate outlook for 2019
According to data from previous trends and reports by real estate agencies like JLL, the Philippine real estate market promises to be bright for 2019. The real estate industry expects robust growth to continue based on previous trends, lasting for the next two to three years.
“The Philippines’ real estate market is driven by rapid urbanization, increasing employment by the BPO sector, disposable income, surging OFW remittances and growing real estate investments,” explains a report by Ken Research.
The influx of high investments from International and domestic players has caused a huge demand for office spaces and rapid employment generation. “The increasing disposable income and rising tourism [are] escalating the demand for all the sectors including residential, commercial, retail and hotel sector,” the report adds.
Strong demand—driven by the influx of expatriates working for the BPO industry and online gaming companies—will continue beyond 2019. So invest in real estate now, or as soon as possible, before prices increase in the next couple of years; that’s the best decision you can make this year.
2. More infrastructure to be finished this year and right after 2019
Many believe that the government’s Build, Build, Build program will usher in the country’s “golden age of infrastructure.” Numerous new roads, bridges, railways, and airports are scheduled to be finished in the next few years. This project is set to decongest Manila, by making other places beyond the metro more accessible. It hopes to encourage growth in provinces, as new infrastructure can encourage investors to consider setting up shop there.
Real estate values normally increase around areas where major infrastructures like highways, bridges, and roads go up. And the values increase even more, up to 50 to 70%, after the infrastructure’s completion and the start of operation.
Now is the time to research about these projects under Build, Build, Build, and to explore your options before values increase drastically after each project’s completion. More are set to be completed by 2020 and 2021, so it’s time to take advantage of current prices of real estate in 2019 in areas that are set to experience a drastic increase in value in the next couple of years.
3. There’s going to be a huge demand for rentals
We have been seeing a steady influx of foreigners coming to the country to invest and work in BPO, gaming, and other industries. Market reports predict that this will continue this year up to the next couple of years. This therefore drastically increases the demand for rentals.
Many see this as the fulfillment of people’s dreams of having passive income thru rental properties. According to Colliers Philippines Research, the demand by foreigners will drive rentals 30%-50% higher especially in residential areas near business districts.
Thus people are opting to take advantage of this phenomenon by investing in real estate near places of growth and business—using it either as a home or as a rental property that brings steady passive income.
With a positive real estate outlook, more infrastructures scheduled to be completed in the next couple of years, and a booming rental market—it’s time to finally get off the fence and invest in real estate in 2019. Whether you buy your family home or invest in property to rent out, you’ll be glad you caught the real estate market on the upswing.
Ready to take that step towards owning a home? Start your journey here and find the right kind of condo or house you need.