THE PRESENT AND FUTURE OF PHILIPPINE REAL ESTATE

From a global perspective, the Philippines real estate sector is inherently unique, and many would argue is currently undervalued. As the economy returns to above average pace of growth and the maturation of its internals continues, local and international investors alike should become increasingly intrigued. This is the time to get in because what is reasonably priced now, doesn’t stay that way forever.

It’s a well-known fact that there are significant protective measures built intrinsically into the Philippine real estate market that seek to curb speculation and ensure long-term affordability for Filipinos. The reality is these policies, as well as the collective resilience and conservative nature of banking institutions, private enterprise, and real estate developers alike, paves the path for growth and stability over time. These policies should be seen as a necessary sacrifice of short-term, unjustifiable price increases, in lieu of longer-term, sustainable gains.

There have been many calling for a reduction in these measures (particularly the 60/40 rule) and many of those calls come from outsiders who are not concerned about the permanency in the market, but rather are looking for opportunities to speculate, regardless of the consequences to the local market participants. For both foreign and local investors with longer-term horizons, these measures are seen as necessary for risk reduction and are often applauded.