As another year unfolds, another set of trends and outlook are also awaiting to be tapped this year. Here are the six real estate ventures to watch out for!
1. REAL ESTATE INVESTMENT TRUST (REIT)
Certain roadblocks affecting investments on the previous REIT takeoff have now been addressed in the new Implementing Rules and Regulations (IRR). These amendments are expected to spur growth in the economy as funds raised from this investment vehicle are mandated to be reinvested in infrastructure including real estate within a year. The public will also get an opportunity to participate in the booming property industry. To date, several major developers like Ayala Land, Inc., DoubleDragon Properties Corp., Megaworld Corp. and Century Properties Group, Inc., have already expressed their interest in launching their REIT platforms.
2. FLEXIBLE WORKSPACES
The workforce, which is comprised mostly of millennials and Gen Z, now opts for built-to-suit offices among other types of workplaces. They have fully embraced the concept of collaboration and flexibility resulting in the emergence of flexible workspaces in areas like Makati, BGC, Ortigas, and Quezon City, among others. As flexible workspaces start to flourish in the Philippines, both local and foreign operators continuously expand their portfolios, not only in Luzon, but in Visayas and Mindanao as well.
Things aren’t going bleak for brick-and-mortar concept as it finds its way back in the retail scene by improving its customer service through technology and data. Because of this, the consumers can get more exposure to the product/s, be in control of their choices, and be able to instantly get their good/s. Its comeback is mostly owed to millennials and Gen Z preferring a more personalized shopping experience. This upgrade, if adopted by retailers wisely, is seen to drive down the vacancy rates and sustain the retail sector as a whole.
Due to the skyrocketing rental prices and heavy traffic caused by ongoing infrastructure developments, employees are prompted to live nearby their workplaces. To meet the demand of this new market, developers have thought of creating an innovative housing facility that features budget-friendly yet furnished living spaces. This housing segment has slowly been making waves in Metro Manila and even major developers such as Ayala Land and SM Prime have been incorporating this shared-housing trend in their portfolios.
5. BUDGET HOTELS
Who haven’t heard and tried “staycations”? This concept has been widely popular among families and young tourists looking for affordable accommodations where amenities and room services provided are not compromised. The fusion of these hotel features is embodied by budget hotels partnered with the likes of Zen Rooms, OYO, and RedDoorz. As cost-conscious travelers multiply, the demand for hotel rooms of this sort is expected to climb as well.
6. LAND VALUE APPRECIATION
The Philippines’ infrastructure drive will soon boast its much-awaited infrastructure developments this year, such as the Skyway Stage 3, the NLEx Harbor Link C3-R10 section and the Bonifacio Global City-Ortigas Center Link Road Project. The economic progress brought about by these projects expects to drive the land values higher, especially in areas in close proximity to these infrastructure developments. With the ambitious project of the current administration taking effect, it is the best time for land bankers to take advantage of the properties nearby these infrastructure projects.