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Real estate news in the Philippines

Manila’s house prices surge by a staggering 26.2%

zoning laws in the Philippines

The housing prices in Manila have surged by an impressive 26.2%, solidifying the Philippine capital’s position as a leader in the global prime real estate market. This remarkable growth has been driven by strong economic performance, increasing consumer confidence, and substantial investments in infrastructure. For international investors and expats considering Southeast Asia, Manila presents a rare opportunity for both growth potential and a lively urban lifestyle, which is currently more attainable than ever.

Sustained demand drives Manila’s continuous price surge

Over the past three months, property prices in Manila have increased by 4.6%, indicating strong and continuous demand. This consistent upward trend suggests more than just a temporary increase, but rather a sustained pattern. Experts, such as Liam Bailey, Knight Frank’s global head of research, attribute this surge to a combination of high demand and low supply. With strong economic indicators, this trend is expected to continue, potentially providing high returns on investment for those entering the market early.

Implications for property owners and prospective buyers

The current property market in Manila offers lucrative opportunities for property owners. The increase in property values is expected to result in higher rental yields, making it a good time to hold onto existing properties or consider expanding rental portfolios. Additionally, Bailey suggests that potential changes in interest rates could lead to a shift in market dynamics, potentially bringing more properties into the market, increasing liquidity, and possibly stabilizing prices. Another option is to take advantage of the appreciation of value by selling property in Manila.

Prospective buyers, especially foreigners looking to invest in Manila, face a complex decision. Waiting for the market to cool down could be risky if prices continue to climb. On the other hand, exploring suburbs or less developed areas around Manila might offer more affordable entry points into the Philippine real estate market without missing out on the overall upward trajectory.

Manila’s real estate market compared to the rest of the world

Manila is experiencing rapid growth, which sharply contrasts with cities like London, where the real estate market has stagnated. According to the Prime Global Cities Index, the average growth rate among the world’s prime cities is 4.1%, but Manila surpasses this rate by a significant margin. While Tokyo and Mumbai are also experiencing growth, they are not keeping pace with Manila, indicating a unique investment opportunity in the Philippine capital.

The current situation suggests that now is the time to consider entering Manila’s real estate market. The city’s growth reflects strong economic conditions and consumer confidence, making it an opportune time to invest. Whether you are looking to buy or rent, Manila’s real estate market currently presents compelling opportunities that should not be overlooked.

Your guide to buying property in the Philippines

Written by Matt Timmermans

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