As a vast and gigantic universe, many people aspire to delve into the wonders of the real estate industry. Whether it is a house and lot in the metro or a condo in Laguna, many aspiring investors are interested in riding in the trend and experiencing the joys of investing in the most secure investment that there is.
Most of the time, people use the term real estate with words like land or real estate property but there are differences. Real estate includes the land as well as any enduring human constructions, including homes and other structures. An improvement is any addition to or alteration to the land that raises or lowers the property’s value. However, land includes all vegetation, minerals, and water on the earth’s surface up to its center and upward into the upper atmosphere. After the land has been upgraded, the sum of the labor and capital utilized to construct the improvement will reflect a substantial fixed investment. Real property consists of the land, its improvements, as well as the underlying title and exercisable rights.
Homeownership and rental or investment homes are some of the most popular real estate investment strategies. Real estate wholesalers are one form of real estate investor who contracts a house with a seller before locating a buyer. Typically, real estate wholesalers locate and purchase distressed houses without making any modifications or renovations. All the while, the term “real estate development” or “property development” refers to a variety of operations, from the renovation of existing structures to the acquisition of undeveloped ground and the sale of finished parcels of land.
Statistical agencies and departments recognize the role of the real estate market in the Philippines and even tag it as the key driver of the Philippine economic growth. In reality, The Statista Research Department (2022) stated that as of the second quarter of 2021, it was able to provide a gross value added of around 126 billion pesos. In line with this, the purchasing power of many Filipinos has risen, making some of them part of the middle-class community and also adding them up to the ones who can purchase properties in the country.
Though the real estate industry was also hit by the pandemic, it did not stop investors from looking for the right properties. The industry experts say that they should expect a more positive outcome for them in the coming months. Now that we are more than halfway to 2022, these are some things to expect from the industry:
Some Things to Expect From the Philippine Real Estate Industry in 2022
Suburbs will also lead the charge
Living in the urban wilderness may be unpleasant and challenging for some people. There will be times when the person is exhausted by the time they come home in the evening after the daily commute to and from the job. Due to this, people have started to move out and will continue to do so in the second half of 2022.
Though the purchase of properties in the provinces started to boost in 2018, it was more obvious in the first half of the pandemic since people opt to live in more secluded spaces with open, fresh air. Other than residential areas, commercial establishments also have started to spread and bring convenience to these places which made real estate investments more lucrative in these areas. Properties in the South like condo in Laguna have become more attractive to both local and international investors.
Other than the surge of several residential and commercial establishments, another major factor in boosting the residential real estate market in suburbs is the willingness of the local government to accommodate business expansion and be open to more investors in their area. Moreover, BPO companies have started to move out from Metro Manila to expand and accomplish their business in the major cities in the provinces.
Premium Still Prevails
Despite uncertainties in the larger market, premium real estate has continued to set standards. The demand lift also strives to have more steadier weight than other segments of the property market since high-end buyers frequently function well outside financial constraints that would stop most other buyers in their routes. Upscale buyers are more aware of business and economic conditions, and it is useful to be one of those purchasers. Buyers at the upper end are typically insulated from experiencing the impact of such changes, while typical buyers worry about the prospect of one or two interest rate increases or price falls of one or two percentage points. In the second half of the year, luxury residential properties like condominium units are more likely to soar, and this is one of the emerging growth trends in 2022. The ease of renovation and enough utilizable space are among the usual reasons why property seekers prefer condominiums.
A Place to Relax
Our lives are currently more hectic than it has ever been. Whether it’s a workday or a weekend, people spend significantly more time in their offices or on the road than they do at home. It is time for everyone to calm down and put in a concerted effort to relax since most of us are all leading fast-paced and frantic lives. For the majority of us, unwinding no longer comes naturally, and people have to actually force themselves to pause and take in the sights of swaying trees and fog-filled leaves.
This kind of lifestyle is not something some people can leave behind, so some of them opt to build or purchase properties where they can fully relax and forget the busy streets for a nice weekend. People now tend to look for properties with high-end amenities that can accommodate their resting needs. Most people want an air-conditioned home, with a pool or a function hall nearby where they can relax. Others prefer areas with gyms so they can still have their bodies checked and fit for day-to-day work.
Foreign Investments
Foreign investments are one of the emerging trends in the country. As the government is easing restrictions, this gives foreign investors a chance to set up shop in the country and provide jobs and value to the country. With more people coming into the country, demand for real estate properties will only get higher, may it be office space or residential real estate. This is also seen as a way to stimulate economic growth.
To sum things up, people can expect a steady real estate industry for the coming months. Suburbs will lead the charge, premium still prevails, and people choose better places to relax. Properties with high-end amenities are among the top choices since people have stronger purchasing power.
Read more: What Should We Expect From The PH Real Estate Industry Towards The End of 2022?
