With the reopening of the economy and the gradual return to normalcy of life post-pandemic, Lamudi, the leading real estate platform in the Philippines, saw a boom in demand for rentals in the Philippine real estate market as more and more overseas property seekers zero in on the local arena, a trend which has been on the rise since the last quarter of 2021.
According to Lamudi’s The Outlook Quarterly report on the Philippine real estate market, out of all seekers abroad, Singapore was the leading overseas source of inquiries for condominiums and houses for sale, proving yet again to be an attractive destination for OFWs and local expatriates seeking work opportunities close to home.
Affordable residential real estate continued to contribute a sizable share of leads on Lamudi – condominiums and apartments attracted the largest increase, with listings in lower price segments attracting more than a third of the total lead for both buy and rent markets. Over half of all leads for residential properties for sale on Lamudi were for listings priced at P6 million and below.
For commercial rentals, the world’s largest service outsourcers, such as the United States and Australia, formed the majority of the market. While Singapore-based property seekers were the top seekers of residential property in the Philippines, its vibrant start-up scene and educational interest in the Philippines have led entrepreneurs and professionals to venture into the commercial real estate market as well.
Office and retail spaces are at the top of the priority list for these types of overseas seekers. This is closely followed by related commercial properties such as buildings, warehouses, service offices, and co-working spaces.
“These trends all tell the same story: that the Philippines is headed towards greater heights as the economy reopens in the post-COVID era. More and more developed countries are undoubtedly setting their sights on building a Philippine base, which means that the domestic real estate market is expected to be busier than ever,” said Lamudi Philippines Country Head Anurag Verma.
Property seekers from cities in the Middle East – Dubai, Doha, Riyadh, Abu Dhabi – and Singapore sent in the most inquiries for CALABARZON properties in the second quarter of 2022.
With a majority hailing from Cavite and Batangas, OFWs are looking to purchase properties in their hometowns or invest in real estate in metropolitan areas nearby. Houses followed by land were the property types most viewed by Middle East-based property seekers.
According to the Philippine Statistics Authority, OFW remittances in April amounted to $2.39 billion, marking a 3.9 percent growth from the previous year. With the passage of amendments to the Foreign Investment Act, Foreign Investment Negatives List, Public Service Act, and Retail Trade Liberalization Act, the country is poised to receive more interest from overseas investors – paving the way for positive developments in industries, including the real estate market.
“Needless to say, if we maintain this upscale trend in the property market and other industries follow suit, no one can underestimate the Philippines in terms of economic development. We can only be excited about the future landscape of Philippine real estate,” Verma added.