As our country continues to grapple with the coronavirus pandemic, various industries also face challenges brought upon by the pandemic. Changes in business operations caused financial struggles to different businesses, along with the cloud of uncertainty hovering around Filipinos. This 2022, more things will change, and for the real estate market, things look like they are going upward.
According to the report released by property consultancy firm Colliers last December 2021, the Philippine real estate sector is poised for a rebound this year. The report also said that the country’s improving vaccination rate should be the reason for this development. To further explain this forecast, here are things to expect from the Philippine real estate market in 2022.
Colliers expect to see a continuous increase in office properties sold this year. In 2021, they recorded a 2% increase in office property sales during its first nine months. 61% of these sales were traditional occupiers.
Besides that, they also predict the adoption of sustainable office spaces to be prevalent from 2022 onward. They expect it to play a vital role in future-proofing offices past 2022.
The completion of major infrastructure projects will lead to an increase in sales of residential properties. Places like Pampanga and Bulacan will reap the benefits of the NLEX-SLEX Connector, Central Luzon Link Expressway, and North-South Commuter Railway projects. These projects will ease access to the NCR from the said regions whose residential property construction projects are already underway.
Said projects include Rockwell Land’s Nepo Center in Angeles Pampanga. It will feature mid-rise residential condominiums and a mall. Meanwhile, Megaworld’s Northwin Global City will be constructed in Marilao Bulacan, which will feature high-rise condos, office buildings, a mall, hotels, and schools.
In contrast with the previous two property markets, retail will have a tougher time in 2022. Colliers predicts that vacancy will rise in the retail sector to about 17%. It will be partially due to the new supply of retail properties and shaky demand because of the shifting lockdown situation in the NCR. Colliers advises retailers to expand their e-commerce presence and maximize technological advantages to address this possible scenario.
Leisure property owners will have to continue to rely on domestic tourism in the meantime to generate profit. The Department of Tourism (DOT) expects domestic trips to increase this 2022. They are predicting an 84.8 million increase in local travelers this year, which will help increase hotel occupancy across the country.
The growth of the industrial property market will likely be sustained by the demand in manufacturing, logistics, and e-commerce across the country. Colliers also believes that developers can capitalize on the opportunities brought by this demand by refurbishing existing warehouses.
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