The new government promised many things during its inauguration. One of the most highlighted projects of the new leader, President Rodrigo Duterte, is to raise more infrastructures not only in Metro Manila but also in near provinces. The government is proposing P890.9 billion for new development projects, a huge 5.2% of our gross domestic product. Because of this, the media dubbed the Duterte administration as the Golden Age of Philippine Infrastructure.
Duterte and his administration vow to start constructing for railways, airports, and of course buildings. As part of the nations’ preparation towards federalism, the government is planning on building economic zones in each region. Economic zones are locations where businesses and major residential developments may grow.
The real estate industry will be affected by these new infrastructures – in a good way. We listed down each development that the new government is planning and how these can affect our industry.
1. Growth of Public-Private Partnerships
According to CNN Philippines, the President is eyeing for the growth of our country’s Public-Private Partnerships (PPP). PPP refers to ventures that use funds from both public and private sectors.
- Effect: The rise of the PPP gives us more access and opportunity to build more developments. Expect real estate investors to be included in this partnership.
2. New airports
The new administration also wants to strengthen airports all over the country. More options are now added to the travel-savvy Filipinos, making it easier for us to travel in both domestic and international.
- Effect: We all know how congested the Ninoy Aquino National Airport could get. With the strengthening of the Clark and Davao airports and possible construction of airports in the North, expect that more people would want to live in other locations in the Philippines other than Metro Manila.
3. Economic zones
As mentioned, economic zones are the main priority of the Duterte administration. Each region might have their own locations where businesses and opportunities are blooming.
- Effect: This is a part of the administration’s plan on de-congesting Metro Manila. Through strengthening economic zones, people would want to go back to their provinces and stay there instead of venturing in Manila. More investors will surely start businesses in other regions, which is always an opportunity for the real estate industry.
4. Building of bridges, roads, railways
More roads and bridges are about to be built by 2017. The administration is currently eyeing a 24/7 construction work in order to finish these projects. Meanwhile in the issue of railways, Duterte is planning on creating 4 railway systems: Manila-Nueva Vizcaya, Manila-Sorsogon, Manila-Batangas, and of course railways towards Mindanao.
- Effect: Easier transportation is not only good for the economy but also for tourism. Tourism increase the chances of getting more property buyers. It can also help in pulling up the value of the properties in the targeted area. With these projects, it will now be easier to travel back and forth to different top destinations in the Metro. Also, better transportation means that the economy of a certain area is growing. A growing economy is always a great thing for the real estate industry.
Overall, these new developments are surely a win-win situation for the industry. Better infrastructure means an increase in value of the properties after all. This will create more opportunities for investors, agents, and buyers. We hope that these projects will continue to flourish and won’t meet any derail.