The recent Dot Property Philippines Awards celebrated the real estate industry excellence that paves the way for greater achievements and vigorous growth in the coming years. Aside from recognizing the outstanding work of real estate developers, brokers, and agents during the past year, “the awardees have new benchmarks for success,” said Dot Property Philippines Country Manager Tanya Peralta-Yu.
The annual event highlighted the Dot Property Group’s role in helping buyers choose the best options in the Philippine market. The occasion also allowed Peralta-Yu to share with the Manila Bulletin her perspectives and prospects for the property sector.
State of the industry
“While the country’s real estate property sector is recovering from the impact of the COVID-19 pandemic, the industry has demonstrated resilience and potential for growth,” said Peralta-Yu. She also noted that in urban areas and surrounding cities, the demand for residential properties has been increasing along with the growing interest in affordable housing and developments targeting first-time home buyers. Particular to tourism and hospitality, “the recovery has reinvigorated interest in hotel and resort properties, particularly in key tourist destinations as travel restrictions ease,” she added.
Peralta-Yu saw the varied demand for commercial and office space due to the ongoing shifts to hybrid work arrangements. “Some businesses are still seeking flexible workspace solutions, and there remains a steady interest from the BPO and tech sectors.”
In terms of investments, real estate investment trusts (REITs) have gained popularity as a means for foreign investors to participate in the market. Peralta-Yu attributes this outcome to the growing economy with a young, dynamic workforce, the recent infrastructure developments, such as new roads and public transportation systems, and the improvement of NAIA, enhancing property values and accessibility in the regions.
The industry hurdles
Given the upswing of the real property sector, Peralta-Yu cited several factors that continue to challenge the industry's momentum and impact its growth and stability.
“The real estate sector is heavily regulated, and navigating the bureaucratic processes can be time-consuming and complex, often leading to delays in project approvals and permits. Insufficient infrastructure, such as transportation and utilities, can hinder real estate development projects. The government’s efforts to improve infrastructure are ongoing, but they often lag behind the rapid growth of real estate demand.”
She added that inflation and interest rates can affect purchasing power and investment in real estate. "Economic downturns or uncertainties can lead to decreased demand for properties. While financing options are available, high-interest rates, stringent lending requirements, and limited access to credit for some buyers can pose challenges.”
“The rapid urbanization leads to high demand for space in urban areas, and contributes to congestion, sometimes leading to inefficient land use or encroachment on agricultural land,” said Peralta-Yu. “In some areas, the oversupply of residential or commercial properties drives prices down and leads to longer selling periods.”
Real estate developers are gradually innovating and adopting technology for property management, marketing, and sales, however, “many players still lag in utilizing digital tools effectively,” she noted. “Then issues brought by climate change, natural disasters, and sustainability are increasingly affecting real estate development and investments in the country, as properties must be built to withstand adverse conditions.”
In addressing these challenges, Peralta-Yu called for coordinated efforts from the government, private sector, and other stakeholders to create a more favorable environment for real estate development and investment. “While these challenges remain, the outlook for the Philippine real estate sector appears positive, with several areas offering growth opportunities.”
Growth and opportunities
For Peralta-Yu, these growth areas reflect evolving consumer preferences, demographic trends, and economic shifts, presenting opportunities for developers, investors, and stakeholders in the local real estate market.
Emerging urban centers outside Metro Manila, such as Cebu, Davao, and Clark, are drawing attention from developers and investors due to their growth potential and rising demand for residential and commercial spaces.
She cited that with rapid urbanization and a growing population, there is a continuous demand for affordable housing, particularly condominiums and townhouse projects in metropolitan areas. In addition, the key trend towards mixed-use developments that combine residential, commercial, and recreational spaces is gaining traction among buyers seeking convenience and an integrated lifestyle. As awareness of environmental issues increases, developers are expected to focus on eco-friendly designs and energy-efficient technologies for buyers looking for sustainable and green buildings.
With remote work and freelancing on the rise so is the demand for flexible office spaces and co-working facilities. “In logistics and warehouse facilities, e-commerce growth requires more logistics and warehouse facilities. Since tourism is rebounding, there’s an increased interest in vacation homes and leisure properties in popular tourist destinations; near beaches, mountains, and other natural attractions. Technology-driven transactions in real estate through platforms for property listings, virtual tours, and blockchain for property transfer is likely to gain momentum, enhancing efficiency and transparency,” Peralta-Yu added.
A platform for sellers and buyers
As an online platform, Dot Property Philippines plays a significant role in contributing to the growth of the real estate industry. “Dot Property provides a comprehensive online marketplace for real estate listings, including residential, commercial, and rental properties. We offer accessibility for buyers and renters to search for properties, thereby increasing visibility and facilitating informed decisions for sellers and developers. We provide marketing tools and advertising solutions for real estate developers and agents, helping them reach a broader audience. The platform is designed with user experience in mind, incorporating features such as filters for specific property needs, virtual tours, and detailed property descriptions. In promoting best practices and fostering a more professional real estate environment, we often collaborate with real estate professionals and industry stakeholders,” shared Peralta-Yu. “Thus, Dot Property will remain to drive interest and investment in various regions throughout the Philippines.”