Trends & Stats
The Philippine real estate industry has experienced significant growth due to a strong economy, an expanding middle class, and increased consumer purchasing power. Notable trends include sustainable and mixed-use constructions, along with high demand for residential and commercial properties, especially condominiums.
Key Points:
- Market Recovery: After facing challenges such as the US-China trade war and a domestic economic slowdown, the market has begun to strengthen. In 2022, approximately 20,000 units were sold, marking a 54% increase from 2021.
- Economic Outlook: The Philippine economy is projected to grow by 7.6% in 2022 and 5.7% in 2023, following a 9.5% drop in 2020. The government aims for a GDP increase of 6% to 7% in 2024.
- Residential Properties: Demand for condos has surged, leading to a 12.9% increase in house prices in 2023. Duplex residences saw the highest price gain (42.9%), while condominium prices dropped by 4.9% in Q4 2022.
- Challenges: Investors and developers should monitor sustained high inflation rates and their potential impact on interest and mortgage rates1.
In summary, the Philippine property market is on a path to recovery, supported by sustained macroeconomic growth and sound economic policies. While rebound rates vary across submarkets, the sector is poised for faster recovery beyond 20242. Keep an eye on inflation and economic indicators for informed investment decisions.
The information provided in this article is for general informational purposes only. It does not constitute professional advice or recommendations. Readers are encouraged to conduct their own research and seek legal, financial, or real estate professionals’ guidance before making any property-related decisions. The author and publisher disclaim any liability for actions taken based on the content presented herein.