Real Estate Experts' Outlook: Philippines Economy and Property Markets in 2023-2024

In the bustling realm of the Philippines' real estate market, experts and stakeholders recently convened to offer their insights on the nation's economic and real estate landscape for the years 2023 and 2024. This gathering comprised a diverse array of individuals, including developers, brokers, academicians, consultants, and government officials.

Dr. Sopon Pornchokchai, the President of the Agency for Real Estate Affairs (www.area.co.th), was among the prominent figures invited to share his expertise at two key conferences in Manila. These events, held from September 25 to 28, 2023, saw the participation of hundreds of real estate professionals from the Philippines. Dr. Sopon, in collaboration with this knowledgeable audience, conducted a survey that garnered responses from 46 out of 350 participants, providing valuable insights into the state of the real estate industry in the Philippines.

One noteworthy observation made by these experts was the assessment of the Philippine economy in 2023, which received a moderate rating of 6.1 out of 10. Encouragingly, this rating improved to 6.9 for the year 2024, instilling optimism about the nation's economic prospects. In a parallel vein, the real estate markets in the Philippines were appraised as moderate, scoring 6.9 out of 10, with a forecasted rise to 7.5 in 2024. These assessments suggest that the real estate sector may experience significant growth in the near future.

Residential properties, encompassing residential housing and condominiums, stood out as particularly popular within the Philippines' real estate landscape. These residential developments accounted for 38.1% of the market. Commercial properties followed at 28.6%, while industrial properties garnered 16.7% of the experts' attention. Hospitality properties represented 9.5%, and farm lots claimed 7.1% of the spotlight.

Prominent developers making their mark in the Philippines included Ayala Lands, DMCI, Megaworld, and SMDC, each holding significant market shares of 21.3%, 13.3%, 14.7%, and 12.0%, respectively. Other major players, such as Aboitizland, Cebu Landmasters, Damosa Land, Inc., Phinma Properties, Robinsons, and Vista Land, also contributed substantially to the industry.

When considering regional influences, Metro Manila's key cities, including Manila, Makati, Taguig, Alabang, and Quezon City, collectively represented 26.9% of the market. Beyond Metro Manila, Cebu garnered a 15.4% share, Davao captured 13.5%, and Cagayan de Oro claimed 9.6%, among others.

Notably, foreign investors demonstrated keen interest in the Philippines' real estate offerings, with Japan emerging as the top destination for property purchases at 22%. Singapore followed closely at 18%, while Thailand secured 12%. The United States accounted for 8%, with Canada, Italy, and other countries contributing to the diverse landscape.

In summation, the Philippines is poised for economic and real estate growth in the coming years, making it an attractive destination for both local and foreign investments. The insights from these real estate experts shed light on a promising future for the nation's property markets.