Challenges Real Estate Professionals in the Philippines Encounter
The real estate sector is one of the growth drivers in the Philippine economy alongside manufacturing, trade, renting, and business activities according to National Statistician Lisa Grace S. Bersales. It was based on the government’s gross domestic product (GDP) report in the fourth quarter of 2017, stating that the Philippines belongs to the fastest-growing economies in Asia with 6.7% GDP growth after China and Vietnam with 6.9% and 6.8% respectively.
Its steady progress is attributed to the increase in the demand and construction of residential and commercial properties. Such an improvement opens multiple doors for many Filipinos to start a career in the now sought-after industry. Moreover, its growth is seen as an opportunity to elevate one’s career, positively affecting the lives of Filipinos and expatriates, and the economy of the country in the process.
The consistent increase in the number of real estate brokers and agents in the Philippines serves as evidence that this era is possibly one of the best periods in the industry. However, while the figures are inspiring, real estate professionals face challenges that drive them either to be a better broker or to change career. The following are challenges real estate brokers in the Philippines face regularly; these concerns when properly recognized and resolved can pave the way for a successful career in the industry.
The challenge to stand out in a competitive industry
The Philippines has no shortage of real estate professionals. The profusion of brokers and agents can be attributed to the continuous construction of residential and commercial properties. In an industry as competitive as the real estate sector, it is necessary to stand out to get more business. Practices, like focusing on a specific demographic and class, using technology to post properties online, and joining real estate networks, can get one noticed in the populous industry.
The challenge to understand real estate legalities
The real estate industry is guided by laws; therefore, brokers and agents must keep abreast of all the amendments that take place, especially if the changes affect the industry. Ignorance of the law leads to legal issues. In addition, when violations are proven, penalties are inevitable.
This year, the Tax Reform for Acceleration and Inclusion (Republic Act No. 10963) or TRAIN law commenced. The TRAIN law revised how taxes were computed. Such a revision affected the real estate industry. The modifications aim to simplify tax compliance; however, many real estate professionals are still confused by the changes.
It is important to know and to understand the laws that govern the real estate industry. Regularly reading and watching the news, going to networking events, and attending seminars are good practices to learn accurate facts and to grow in the industy.
The challenge to market properties
Real estate agents and brokers in the Philippines utilize digital tools to close more deals. Today, technology is at hand to help them list properties online and to communicate with prospective clients. However, while property portals and social media profiles are effective tools, due to the profusion of online listings, the battle for consumers’ attention becomes intense.
Online marketing is changing the way clients search for properties; thus, it is imperative for real estate professionals to create a strategy, whether traditional or digital, to reach effectively and efficiently their desired target market. They must market properties only to their target clients, as being a generalist can help them reach more people, but focusing on a specific market increases their chances of meeting a qualified client.
These are only some of the challenges real estate brokers and agents in the Philippines face today. Moreover, while the industry requires its professionals to continue learning, they must know that there are ways to be equipped with the right mindset, information, and strategies.