Perfect timing plays a big role in actualizing any kind of investment. This holds true particularly in real estate. Any piece of land can depreciate its value while some may take more time to increase its profitability, but generally, property investments have no other way but up!
While properties are great investments to have anytime, here are 3 more reasons why it’s even better to invest on a property now.
Local and foreign investors look at the Philippine economy with great optimism. It’s no secret that the Philippine economy has grown incredibly over the past years. Investing is less intimidating especially to newcomers. Thanks to friendlier business policies with increased transparency and lessened bureaucracy. It used to be wildly illiquid and exclusively for the rich and the powerful. Now, middle-income class has a chance in venturing into entrepreneurship and investments.
Small to medium businesses have increased in the retail sector. Outsourcing companies remain to be the biggest contributor in terms of foreign investments. As a response to the growth, multiple developments all over the country are now creating more and more spaces to fill in. Outside Metro Manila, promising cities are rising with industrial parks and business districts.The expanding business sector is driving the real estate market afloat and well.
Despite numerous developments, there is still a huge backlog in livable spaces especially in residential units. Major cities attract a large amount of people every year and the need for more livable spaces grows with it.
The need for multiple bedroom units increases as expats and balikbayan families flock Metro Manila’s busiest cities such as BGC and Makati. On the other hand, a percentage of the middle-income class, even those with purchasing power, remains in informal settlement in Manila. Residential spaces near the central cities are very much in-demand across all classes and investments in properties and their development are very much needed.
This may seem like an overextension but how the market culture operates directly affects the industry. The behavior of future tenants is changing the game for property investors.
In major cities in the Philippines, people are now looking into properties that are owned by private landlords. It’s more favorable to homeseekers because they’d actually be talking to individuals regarding their concerns rather than be writing a letter or email no one would read.
Moreover, the current trend in employment is professionally mobile. The new wave of working class individuals are not really looking into permanent settlements yet. They just want to be near wherever their work is. This is the reason why condominiums near business centers like Ortigas and Makati are more realistic to them. Because of this phenomenon, properties for rent have increased their profitability.
These external indicators only prove that now is the best time to invest. After all, it will depend on personal circumstances. Keep in mind that property investments require extensive capital and an in-depth knowledge of ideal locations.