Continued demand for housing outside NCR
Recently, there has been a growing demand for housing in areas outside of the National Capital Region (NCR). This demand is driven by the search for more affordable and spacious living options. Regions such as Calabarzon, Central Luzon, and Central Visayas have experienced thriving property markets despite a slowdown in the capital. The main factors behind this demand are the lower cost of living and the availability of larger residential units compared to those in Metro Manila. These regions offer attractive opportunities to acquire property at more competitive prices for foreign investors looking to invest in Philippine real estate.
Increase in Philippine residential real estate loans
There has been a significant increase in residential real estate loans (RRELs) in areas outside the NCR. According to the latest data, by the first quarter of 2024, Calabarzon held the largest share of granted RRELs at 34%, surpassing the NCR. This trend highlights the growing preference for property investment in regions outside the capital. For property buyers, especially foreign investors, this indicates a strong market with potential for property value appreciation and rental income in these areas.
Several factors encourage the relocation
There has been a significant increase in people relocating from the NCR to other regions. This is due to various factors such as the availability of high-quality job opportunities in provinces, lower living costs, and the expansion of digital infrastructure, which have made rural areas more appealing. The rise of remote work arrangements has also played a significant role, allowing employees to work from the comfort of their homes without needing to be in the capital. For foreign investors, this trend suggests a growing market for residential properties in regions that offer a better quality of life and work-life balance.
The migration trend has led to increased business growth in regions such as Calabarzon, Central Luzon, and Central Visayas. These areas have experienced a rise in business activities, making significant contributions to the local economy. Establishing new businesses and expanding existing ones have attracted more urban migrants back to their hometowns, further increasing the demand for residential properties. For property owners, this growth creates an opportunity to take advantage of the increasing need for housing, which is being driven by economic development and urban migration.
What this trend means for property investors
For international property buyers, the present Philippine real estate market trends offer a special opportunity to invest in prosperous areas outside the NCR. The increasing need for housing, along with the growth in residential real estate loans and business expansion, shows a promising market with the potential for lasting profits. Investing in these areas can provide a more economical entry point and the potential for higher returns compared to the crowded market in Metro Manila.
For current property owners, especially those with holdings in areas outside the NCR, the ongoing demand and economic growth offer opportunities for property appreciation and higher rental income. By maintaining and improving property values through quality upkeep and taking advantage of the growing infrastructure and amenities, you can ensure sustained interest and profitability.
