As the population grows in the Philippines, more of the market is comprised of working millennials who are seeking investments to settle their lifestyles. Whether they are looking for a home to live and build a family in or simply want an asset that can appreciate over time or be sellable or leasable, real estate remains one of the hot tags right now.
But what exactly is the state of real estate in the country right now? How can one best make use of their hard-earned money to dip their toes into this vast industry? Well, it all depends on why you’re buying and how you’re doing it.
Offices and Residences
A preselling condo along Ortigas avenue, for instance, could be a great space if you’re a working individual who needs a home. It is accessible and within a busy spot in the metro. It allows you to reach many important sectors, from the massive workforce found in the area to the different schools, recreational hubs, medical centers, and government offices across the area.
It’s also a good purchase if you are looking for properties that you can lease out to the budding middle-class segment of society that is often found in the heart of Metro Manila. In recent years, office spaces continue to grow, and condominiums are consistently built to answer this growing demand for housing and space. Offices remain a major growth factor in local real estate, expected to continue to 2021 with little vacancy despite dips in the economy.
Rent is also expected to see a consistent rise in the coming years. This factor makes it beneficial for those planning to lease out their properties and implores more individuals to invest their efforts into owning a home rather than renting it out. This has made the rent-to-own set-up also more attractive to the core market. It is shown to be mostly comprised of those in their late 20s to mid-30s now. This puts the middle-class workers in a position where financial states urge them to make more solid investments toward their future.
Recent survey data reveals that Filipino millennials are generally confident about their future planning and are driven by goals of owning key assets like real estate property, a vehicle, and having enough savings for retirement. A lot of the motivation also stems from socioeconomic and societal responsibility these days. A lot of would-be homeowners want to see how sustainable companies and contractors are when eyeing property investments.
The market is generally more mindful now of the impact each purchase has on the environment, as they want to ensure a more livable future that can cater to both younger generations and their own plans for smooth aging.
On the flip side, it’s also become more important for payment schemes deployed by suppliers to be more flexible so that they can cater to the millennial spending habit and mindset. As this generation of go-getters prefers to indulge in instant gratification, payment plans have to become more geared towards fast-paced lifestyles and buyers who have more plans before settling down.
Overall, it seems like real estate is still going strong in the nation, with core changes that are shifting the way property trades hands.