As soon as 2022 rolled in and through the help of easing quarantine protocols, our country’s economy soon started to bounce back from its horrendous downward spike ever since the pandemic started. Numerous businesses and industries, from food, clothing, travel, and of course, real estate are all starting to recover and even come back stronger than before.
In the Real Estate Sector, Studies Have Shown and Predicted Many Positive States for the Real Estate Market This 2022.
The real estate market trends were observed through the different developers of properties, their usage of social media, and other technological strategies to entice the interests and hook their target customers. Additionally, due to the progressing number of citizens being vaccinated and now immune to the COVID-19 virus, real estate agents and interest buyers of a house and lot could now fully interact in an onsite setting through the so-called tripping of the latter to the subdivision.
Now that people are back in the mood to eye new properties to call home, real estate investors and property manufacturers must be as attentive now as ever when it comes to what these buyers want.
And, actually, it is also key for customers to be well-versed in the current trends because they are trending for a reason. Most of the time, trends are better, and more efficient versions of what used to be existing. They are somewhat replacing the “old” trends because they are more helpful in addressing people’s needs.
Who would want to buy something outdated if there is something new with more improvements?
Both locals and OFWs are keen on buying whether it’s residential real estate, commercial real estate, or a real estate investment.
Founder of Filipino Homes, a real estate developer based in Cebu City, and top real estate broker in the Philippines, Anthony Gerard Leuterio says that the Philippines’ real estate industry will continually experience economic growth if the overall economy of our country is stable when it comes to recovering from its fall during the 2020 and 2021. After all, the property industry is dependent on people and if they are still grappling to be financially stable, fewer would buy or rent out the property.
But, so far, people are seemingly bouncing back from the financial setbacks that they experienced from the sudden global crisis. These include the Overseas Filpino Workers. Based on the following data, these OFWs and their families will be buying real estate property this 2022. This was also based on the statistics that go back to 2020.
According to statistical research from the Bangko Sentral ng Pilipinas (BSP), OFWs were able to send their families $29.9 billion in remittances. Meanwhile, $2.7 billion was sent in 2021’s September, a 5.2 percent increase from the previous year. Based on these findings, the BSP predicts at least a 4% increase when it comes to 2022’s remittances.
Real estate experts say that these OFWs will soon join the housing market and purchase a house and lot or a condominium this year and in the following years.
Mid-Costed Projects Are Progressing
Based on past and recent purchases, Filipinos seem to prefer real estate (specifically a house and lot) that is mid-priced. Current mid-priced houses go around from Php 3M to Php 6M. The price and the two-percentage-point interest rate were recommended by the Bangko Sentral ng Pilipinas due to purchasing power.
Increase Number of Millenial Home Buyers
Newsflash: People nowadays do not have to be middle-aged married or tenured at their jobs in order for them to buy a home. The young can now purchase houses of their own which is one impressive feat.
According to research fact by the Philippine Statistics Authority (PSA), these people are estimated 28% of our country’s workforce, and target customers of real estate companies largely consist of millennials (people who are aged between 25 and 34).
With this comes the high demand for what they call integrated or master-planned communities. Such types of areas consist of both houses and condominiums, malls, schools and universities, hospitals, offices, great leisure services, and the like.
Additionally, it is known that millennials tend to use the internet a lot. This is why property agencies are now working their way through the ins and outs of the internet in order to hook this demographic to buy their property.
City Life Is Thriving
In relation to that, as technology progresses, lifestyles also change. Most rural cities are being flooded with commercial real estate, buildings, infrastructures, and recreational and commercial amenities which are taken interest by real estate investors who wish to partake in the housing market in the center of the “city life”. People’s mindsets have also changed too: a lot rather live in a big, bustling city rather than a slow province, and have a high place loft to see the wondrous view of the city lights.
A current real estate portfolio shows that a lot of people have been purchasing and renting out condominiums, the type of housing that is built for the city. Thus various real estate developers have been turning to condominium projects as demands have been increasing.
Additionally, now that everything is slowly going back to normal and that both school and work-from-home trends are coming to a close, many students and professionals are predicted to be buying condominiums in order to be closer to their offices and schools. This 2022, with all of the Big 4 universities in our countries already adopting a limited face-to-face environment, many dorms and condos are being filled up again. If students do this, how many more people work?
Another fact to take note of is that the demand is specifically for the studio-type condos surrounding business, educational, and commercial centers. If you are planning to rent out some property, then we highly recommend investing in some studio-typed units on a condo.
Home Construction Is Getting Costly
Back in 2021, the housing index in our country cost around Php 11, 900, as stated by the Trading Economics global macro models and experts. This year, however, such the index now costs Php 13,000 per square meter. Naturally, now that it is more expensive to build a home, home prices have to go up.
Nevertheless of this fact, a lot of people still seem eager to buy housing. After all, having a roof on top of one’s head is a basic need to live life well.
Related Blog: The State of Residential Real Estate in the Philippines this 2022
