Brick by brick: Revisiting real estate investing

The real estate industry has languished in a high interest rate environment.

But with forecasts that interest rates will begin to go down this year, is it a good idea to look into real estate again?

Of course, you should consult your trusted investment advisor. But if you do consider investing in real estate, we have a guide for you.

Check out our story, "Real estate investing for discerning Filipino investors".

We also have a follow-up story on inflation and the risks that continue to hamper the government's efforts to tame it. See "Inflation risks to watch out for".

Lastly, we have our latest economic updates in "January 2024 Updates: Staying the course in early 2024".

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Real estate investing for discerning Filipino investors?

With a dynamic economy and a burgeoning middle class, there is a myriad of opportunities for high-net-worth Filipinos looking to leverage their wealth in the real estate sector.

The Philippines’ real estate sector is characterized by a mix of residential, commercial, and industrial properties, with key urban centers like Metro Manila, Cebu, and Davao serving as hotspots for investment.

Read more: Real estate investing for discerning Filipino investors

Inflation risks to watch out for

Local inflation has recently eased back within the Bangko Sentral ng Pilipinas’ target range of 2-4% for the first time in nearly two years.

Is the battle finally over? Not quite. Persistent supply-side pressures remain. While inflation is expected to bottom in the first quarter of 2024 due to favorable base effects, it could still shoot up above the target in the middle of the year.

Read more: Inflation risks to watch out for

January 2024 Updates: Staying the course in early 2024

Philippines headline inflation dropped to 3.9% year-on-year in December 2023 from 4.1% in November (+0.16% month-on-month), mainly driven by a slower annual increase in the prices of electricity, LPG, and rentals, followed by lower inflation on vegetables, meats, and coffee and coffee substitutes.

The latest headline print brings full-year 2023 average headline inflation to 6%, noting the highest recorded inflation for the year of 8.7% in January and the lowest recorded inflation for the year in December.

Read more: January 2024 Updates: Staying the course in early 2024

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