What the Next President of the Philippines Should Focus on in the Real Estate Industry?

In a few days, Filipinos will once again elect government officials who will help elevate the state of the Philippines. Today, the real estate sector being one of the major contributors in the advancement of the Philippine economy should be given the attention it deserves.

There are a lot of matters the next president should focus on particularly in the real estate sector once he or she assumes office. One of the most notable ventures of the Aquino Administration is its devotion to improving the state of business aspect in the Philippines, especially in the real estate sector. With the Gross National Product (GNP) and the Gross Domestic Product (GDP) substantially growing, it has improved the credit rating of the country over the course of 6 years. A credit rating allows private companies like real estate businesses to source cheaper loans for their projects. Thus, it supports real estate developers in their vision to build more projects anywhere in the country. The affordability of cheaper loans is one of the reasons why the real estate sector grew significantly during the Aquino Administration. President Aquino has initiated the movement to create projects that would further improve the status of the real estate sector.

Here’s a list of some major real estate issues that should be included in the platforms and plans of every Philippines’ presidential candidate.

1. One of the major shortfalls of the Aquino Administration that affected the real estate sector is the delay in the execution of the Real Estate Investment Trust (REIT) law. The REIT law is for the purpose of owning income-generating real estate assets. We are the only Asian country now that does not have the REIT law which drastically affects our economy.

2. There are plenty of unused government lands in the country that can be transformed into productive areas. To better utilize these lands, communities where typhoon-resilient homes and agricultural areas can be built. Typhoon-resilient houses can save lives when disaster strikes. The next president should know how to make good use of idle lands in the most useful and beneficial ways possible.

3. Infrastructure developments in the provinces should be given further attention. More road systems should be constructed for accessibility. Infrastructure projects can help avoid overcrowding in Metro Manila. Instead of people transferring to the metropolis, when infrastructures are created in the provinces, it would allow more economic activities. Laws emphasizing countryside development to provide business and employment opportunities for people who live in the provinces should be passed.

4. The government should encourage more Filipinos to acquire homes by creating policies that would make home buying easier. Lending procedures like that of what Pag-Ibig has should also be reviewed to see if it is still appropriate for everyone.

A cohesive and comprehensive action plan can improve the economy of the Philippines. The real estate sector plays a vital role in the progress of the country, and the right strategies can attain lasting benefits that would affect the lives of every Filipino.

What do you think are other issues that the upcoming president should focus on? Share your comments and suggestion below.

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This article is based on the interview with Prof. Dani Antonio, Hoppler’s co-CEO.