Residential real estate is beginning to rebound as people return to work. Offices across Metro Manila are resuming in-person operations which is fueling increased activity there. Meanwhile, locations outside of the city near infrastructure projects continue to be in demand from property seekers, according to Cushman & Wakefield.
“The residential segment is finally seeing a gradual market correction after both the demand and new launches were postponed at the height of the pandemic,” Claro Cordero Jr., Director and Head of Research, Consulting and Advisory Services Cushman and Wakefield, stated. “The segment will continue to build momentum along with the improving business environment, with the demand for properties in the provincial areas with strategic locations and infrastructure developments to remain robust.”
After a pandemic-induced decline, residential real estate in Metro Manila is seeing an increase demand with more people wanting to live closer to the office once again.
“The major CBDs in Metro Manila are attracting increased demand for residential and commercial properties following the return-to-office of many companies. Makati City, in particular, has attracted a quarter-on-quarter increase in residential rental leads by around 40 percent in the first quarter of 2022,” Cordero Jr. said.
Related: Pandemic can’t dent dream of home ownership in the Philippines
Condo market in Metro Manila to begin recovery in the second half
The condo market in Metro Manila is expected to begin its recovery in the second half, according to Colliers International Philippines. An improving business outlook along with the return of foreign employees will provide an enormous boost to the sector in the final half of 2022.
“Optimism in the market abounds especially with more economic sectors opening up. We now see more businesses encouraging their employees to return on site. This, coupled with the return of more foreign employees should have a positive impact on residential leasing. Joey Roi Bondoc, Colliers Associate Director and Head of Research, explained. “Hence, we are projecting a gradual recovery in rents and prices which should extend beyond 2022. Business and consumer confidence should spillover to the pre-selling market. Hence, we project a recovery which should start by the second half of 2022.”
