Despite a noticeable slowdown in Metro Manila’s broader secondary condominium market and a lukewarm pre-selling sector, there is still strong demand for luxury and ultra-luxury units. This trend is fueled by wealthy consumers and investors interested in capital appreciation and see these properties as a hedge against inflation.
Expats drive the demand for luxury real estate in Manila
The return of expats to the Philippines has significantly increased the demand for luxury real estate, especially in prominent areas such as Fort Bonifacio, Makati CBD, Ortigas Center, and Rockwell Center. These locations are preferred because of their spacious unit sizes and close proximity to essential amenities such as offices, schools, hospitals, and retail establishments. The arrival of expats, who often look for high-end accommodations, has resulted in a higher demand for luxury units since 2022.
High occupancy rates and stable rents
Luxury properties in prime locations maintain high occupancy rates and stable rents. For example, Rockwell consistently achieves 90% and 95% occupancy rates. These properties attract high-ranking executives and diplomats due to their exclusivity, prime location, and meticulous upkeep. The hotel-like amenities and services these residences provide ensure they remain in high demand. Prime residential buildings in Makati continue to attract consular officials and top executives, mainly due to their proximity to Ayala Avenue’s corporate offices.
Multinational corporations play a significant role in driving high occupancy rates of luxury properties in Fort Bonifacio. Major companies like Google, JPMorgan, and PwC have set up operations in the area, attracting expats and increasing the demand for upscale condominiums. The district’s international schools also make it attractive to expat families, ensuring a consistent demand for high-end real estate.
Comprehensive amenities enhance the appeal
Upscale residences in Metro Manila offer a comprehensive package of amenities that cater to affluent tenants. These include 24/7 security, state-of-the-art gyms, resort-style pools, ample parking, and high-quality interiors. The proximity to major shopping hubs further enhances their appeal. These comprehensive amenities make luxury properties a top choice for those seeking a premium living experience in the Philippines.
What this means for property buyers and owners
For property buyers, especially foreigners interested in investing in Philippine real estate, the strong demand for luxury and ultra-luxury units offers a profitable opportunity. High occupancy rates and stable rents in prime locations suggest significant potential for capital appreciation and consistent rental income. However, prospective buyers should consider the premium prices associated with these properties and the market’s competitive nature.
For current property owners, especially those who own luxury properties, the ongoing demand from expats and multinational corporations is a good sign that the value will remain stable and may even grow. By keeping the properties well-maintained and making use of the available amenities, owners can ensure high occupancy rates and steady rental returns.
