The Department of Finance (DOF) expects demand for real estate services will continue to pick up now that the economy has reopened and employees are reporting back to the office.
In a statement, Finance Secretary Benjamin E. Diokno said he is confident that real estate services, such as rentals, will improve as mobility restrictions in the country ease.
Moreover, Diokno said the revival of tourism in the country will also propel the real estate industry’s growth as travel restrictions become less stringent.
Real estate has been a significant player in the Philippine economy, however, commercial spaces, home rentals, and sales took a downturn during the pandemic.
“Our economic prospects are promising,” Diokno said at the recent the National Convention and Election of the Philippine Association of Real Estate Boards (PAREB).
With the higher economic activity, the government calls for the support of the private sector as it strives to exceed pre-pandemic macroeconomic targets.
The Marcos administration is fully committed to supporting the private sector’s growth by modernizing industries, creating more job and investment opportunities, and improving overall quality of life, Diokno said.
He said that the government has been doing a series of Philippine Economic Briefings to attract investors.
He added that the government will harness the private sector’s potential through the Public-Private Partnership (PPP) mechanism to implement impactful projects that are consistent with the country’s development goals.
“This administration is more than ready to implement game-changing reforms to cultivate a favorable environment for potential investors,” Diokno said.
Diokno cited the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and economic liberalization measures as game-changing reforms that will provide an ideal investment climate for foreign investors to bring in their businesses to the country.
The finance chief further noted that the Real Estate Investment Trust (REIT) Law has enhanced the country’s real estate sector.
“The REIT is a powerful financial tool that enables the public to participate by becoming shareholders in stable and lucrative real estate projects,” Diokno said.
“REITs play an important role in deepening our capital markets which will in turn power property development in the Philippines,” he further explained.
As a public offering, the REIT enhances economic activity through yields that will be reinvested into real estate and infrastructure projects.
Diokno added that the government intends to pursue remaining reforms such as the Real Property Valuation and Assessment Reform Bill.
He said that the bill aims to adopt global standards in property valuation. The bill provides for a transparent approach that will promote investor confidence in the property markets and help solve right-of-way issues in many infrastructure projects.