From our previous articles, we wrote that despite the horrible events happening in different parts of the globe, having the COVID-19 pandemic as the biggest threat, the year 2020 allowed other opportunities to come out from unexpected places. As many people are in fear of the virus outbreak, and lots of businesses could not operate, but few individuals know that the ongoing crisis could result in potential rare opportunities.
Santos Knight Frank, the Philippines’ first and largest fully-integrated real estate provider, stated that “The country’s real estate industry remains optimistic”. The company has foreseen seven real estate trends to hit the country specifically for this year 2020.
If you want to get in on the secret to this crucial information, either for investment or personal purpose, at least one of these seven opportunities could give you the most advantages.
So, let’s get on with the list.
1. The Listing Of REITs To The Stock Market
After the Securities and Exchange Commission (SEC) released the latest regulations this year of January 20, the real estate investment trusts (REITs) are expected to finally take off. Under the new set of rules, REIT companies can already get listed on the stock market. As a highly liquidated asset that allows the investors to buy shares, REITs are sometimes called real estate stocks.
The property giant Ayala Land Inc. seeks to become the country’s first REIT company to get listed on the stock market under the name AREIT, Inc. Ortigas & Company among the other huge real estate players expressed their plans on entering the REIT market as well.
Starting this year, the capital generated from REITs will create more projects and employments for the coming years.
2. Animation, Game Development, And Healthcare Sectors Will Increase BPO Demands
According to Santos Knight Frank, the business processing outsourcing (BPO) sector will continue to expand in the areas of Metro Manila. In the future, they might even move to other provinces.
Though there seems to be a restricted number of Philippine Economic Zone Authority (PEZA) accredited properties, the BPO industry is expected to keep driving the demand increase for office spaces. According to the joint research of IBPAP and Everest Group, two of the most respected brands in the BPO marketplace, the industry continues to grow from three to seven percent annually.
The fastest-growing sectors when it comes to employment are animation, game development, as well as healthcare.
3. Co-Working Spaces To Expand Both Inside And Outside Of Metro Manila
The few previous years set an unprecedented growth of co-working spaces and companies in the country. Among the international players are Spaces, WeWork, and Common Ground. For local brands, we have Clock In brought to us by Ayala Land, Acceler8 from the company UnionSpace, and Work.able from real estate giant Robinsons Land Corporation. The brands competing for market shares is a clear sign of huge opportunities from co-working spaces. Some of these companies are converting into single-office tenants.
With the demand, the increase was driven mostly by startup entrepreneurs and businesses, freelance workers, and BPO companies in urgent need of an instant location. According to the data of Santos Knight Frank, there is also an expansion in Metro Cebu areas such as Cebu IT Park, and Cebu Business Park.
4. Greener Buildings Through LEED Certification
With the growing awareness of real estate industries with their environmental impact, There’s a growing number of property owners opting for greener designs, systems, and means of building constructions. As an assurance, if a property is environment-friendly enough, there is the so-called LEED certification. Leadership in Energy and Environmental Design (LEED) has the world’s most widely used green building rating system.
As more tenants required LEED certifications before occupying office spaces, there are at least 300 buildings muttered around the country following the LEED requirements, where about 150 of them received the LEED certification. Among those buildings is the BDO Ortigas Tower7 who got a LEED Gold Certification.
Besides the positive impact in the environment, certified LEED structures are positioned higher in terms of market value. Santos Knight Frank reports that certified office spaces in BGC areas are up to 12.5 percent more expensive than the non-certified units.
5. Logistic and Industrial Real Estate Growth Outside Metro Manila
Santos Knight Frank also states that there is a potential of the next wave of logistic and industrial real estate growth around Metro Manila. As digital transactions continue to rise, especially at this time of quarantine, e-commerce companies need additional warehouses and distribution centers to contain shipments.
Calabarzon (Region 4A), including most parts of North Luzon is the most sought-after locations due to the more convenient express roads such as SLEx, NLEx, SCTEx, and TPLEx. To cope up with increasing demand, the next centers of warehouses and distribution centers will most likely be outside Metro Manila to service areas that are out of the capital.
6. Prime Residence In Manila To Remain Competitive
According to 2019 the Prime International Residential Index created by Knight Frank, Manila’s residential market in terms of growth was registered as the “eighth-highest globally and third-highest in Asia”. The growth in prime residences resulted from the increasing numbers of wealthy Filipinos and international buyers.
From the last quarter of 2019, eight prime residential projects were built such as the Ayala Land’s Gardencourt Residences and Alveo Land’s Parkford Suites Legazpi. For this year’s first quarter, Santos Knight Frank already reported three prime residential projects.
Through good and bad economic conditions, real estate developers keep on building more projects. Manila’s prime residence market will not only remain competitive but will also keep the pace of its growth.
7. Co-Living Spaces as well as Micro-Studios As Another Residential Alternative
Having the unholy traffic of Metro Manila, residing in co-living spaces has become an alternative practical solution for people working inside or close to central business districts, especially those who don’t want to waste time getting stuck on the road going to work. In co-living spaces, anyone can get accommodation without the premium pay of an apartment lease and are not obliged to buy a condominium unit. Two of the main players in co-living spaces are MyTown by SM and The Flats from Ayala.
For those preferring privacy, the micro-studio unit is another option, with an average space of around 11 square meters per room. Recently, AboitizLand and Point Blue partnered to enter the micro-studio market as well.
For Opportunity Seekers Within Ortigas
All the trends mentioned are mostly not particular within Ortigas, but all of them drive the overall market value within the area. So, did you find from the list the best opportunity for you? Together with our team, we can help you find the most relevant Ortigas property that most personally suits you.
Looking for a condo unit around Ortigas? I am Glenn Dineros, a licensed Real Estate Broker with PRC License # 5171. Reach me +63 977 852 3852 or +63 939 588 9352. You may also send your email at firstname.lastname@example.org(opens in new tab) so I can help you locate yours.