Where are the property investment hotspots in the Philippines?
Real estate investment in the Philippines continues to pick up thanks in large part to the strong performance of the country’s economy. This has carried over to the property market with the Bangko Sentral ng Pilipinas (BSP) reporting that the residential real estate price index rose by 5.7 percent last year.
Many overseas investors elected to acquire property in Makati. Known as the Financial Capital of the Philippines, strong rental demand and the highest rental rates in the country are appealing to property investors. However, Makati isn’t the only place offering strong rental returns and outstanding capital appreciation.
We’ve compiled a list of four property investment hotspots in the Philippines. Each one offers something unique in addition to holding a great deal of potential.
1) Cebu
Cebu, along with the rest of Central Visayas, recorded a gross regional domestic product growth rate of 5.1 percent in 2017 after rising by 8.6 percent in 2016, stats from the Philippine Statistics Authority show. This has fuelled a real estate boom in the city and makes it one of the Philippines’ property investment hotspots.
Demand comes from local professionals and business owners, overseas Filipinos and expatriates with each group having a different preference in regards to property types. And with more workers and tourists arriving to Cebu, the rental market will likely benefit as well.
“With the anticipated completion of the New Cebu International Port in Consolacion, buyers can expect higher property and rental prices in the town as well as in the nearby municipalities,” Cebu Real Estate Board Inc. (CEREB) first vice president Eva Miñoza told the Sun Star Cebu.
See more: 3 reasons we love Cebu real estate
2) Davao
Davao City’s property market is on the up. The city boasts convenient transportation links, leading universities and a competitive business environment that supports the growing economy. It was recently named as the fourth safest city in Southeast Asia thanks to a low crime rate and high livability. Additionally, the city has earned the title of “Most Child Friendly” and “Most Peaceful” city in the Philippines.
The city is best known for being the hometown of president Rodrigo Duterte, who served as mayor of the city before taking his current role. A new international airport and the Mindanao railway are among the projects he oversaw.
This has led to a wave of new real estate development with several of the country’s major homebuilders starting to take note. Quadruple A developer DMCI Homes was one of the first firms to target Davao City and their efforts helped them take home Best Developer Davao City at last year’s Dot Property Philippines Awards.
See more: The 4 most affordable condos in Davao City
3) Pasig
Pasig is morphing into one of Metro Manila’s hippest neighborhoods. It has become an emerging business district with condominiums, office spaces and entertainment options all readily available.
There is a positive vibe around Pasig that residents love. It has become the place many first-time homebuyers look to when searching for a home. Renters are also flocking here. Prices in Pasig are more reasonable than in nearby Makati while rental yields surpassing ten percent are possible at select developments.
One condominium, Maven at Capitol Commons, is among the most talked about residential developments in this part of Metro Manila. It boasts a sunny, fun and comfortable lifestyle future residents will surely enjoy. The project is in the heart of Capital Commons and is being designed to cater to the young professional who work and play in Pasig.
4) Quezon City
Now could be the ideal time to invest in Quezon City real estate. The area is popular due to its large green spaces and incredible shopping malls. The city is already the most populous in Metro Manila with almost three million people residing here.
However, traffic and a lack of public transportation to other parts of Metro Manila are currently preventing Quezon City from reaching its full potential. That could all change in 2019 when the MRT Line 7 starts operating and makes using public transportation a viable option for residents.
An easy commute to Pasig and Makati will boost the prospects of the Quezon City real estate market and make it one of the country’s property investment hotspots. Demand from both buyers and renters should increase. Investors who make a move now may benefit from lower prices than what will be available in 2019.
