Foreign interest grows on property sector

Affordable residential real estate continued to contribute a significant share of leads

Real estate platform Lamudi reported a boom in rentals driven by overseas property seekers, a trend that has been rising since last year. Based on Lamudi’s The Outlook Quarterly report on the Philippine real estate market, Singapore was the leading overseas source of inquiries for condominiums and houses for sale. Affordable residential real estate continued to contribute a significant 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. While Singapore-based property seekers dominate those interested in the residential property sector, the vibrant domestic startup scene and educational interest have led entrepreneurs and professionals to venture into the commercial real estate market as well.

Heading to greater heights

“These trends all tell the same story: that the Philippines is headed towards greater heights as the economy reopens in the post-Covid era,” Lamudi Philippines Country Head Anurag Verma said on Wednesday. “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. 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 the year.

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.

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 projected to receive more interest from overseas investors, paving the way for positive developments in industries, including the real estate market.