2019 Trends in Real Estate Development
- 2019 Trends in Real Estate Development
Driven by growing demand and supply for residential and office properties, the Philippines’ property sector is on a roll across the nation. Property developers continue to invest in major cities across the archipelago, as more companies in the business process outsourcing and information technology sectors set up operations beyond Metro Manila, thanks to a variety of factors that include a large talent pool and lower rental costs compared to other key cities in Southeast Asia. KB Reality Group presents the 2019 trends in real estate development.
Emerging Real Estate Hotspots
Some emerging property hotspots across the country include Bacolod, Iloilo, Cebu, Davao, and Clark. According to Colliers International, these cities will help drive the Philippines’ property sector not just in 2019 but even beyond it. As office spaces sector changes the country’s property landscape, so do the Philippines’ real estate’s commercial, retail, and residential landscapes. They are expected to evolve and grow alongside the nation’s economy to support the influx of BPO firms and technology-focused companies in the country over the next few years.
For instance, the office property sector in Bacolod is one of the preferred locations for BPO firms engaged in knowledge process outsourcing. This has helped spur growth of horizontal developments in the city’s residential property sector. Cebu remains as the largest business destination outside Metro Manila. The growth of residential property sector is anchored on the rise of vertical developments in Cebu and in its metropolitan and urban areas. Likewise, the continued growth of the retail property sector in these emerging hotspots outside Metro Manila features a combination of malls, foreign brands, and retail.
Meanwhile, Clark in Pampanga has become a very attractive outlet for local and foreign investments due to its proximity to Metro Manila and the presence of major infrastructure projects in the area. The site of the former American military air base is expected to maintain its growth momentum in the property sector this year and beyond it as the current administration of President Rodrigo Duterte pursues its thrust of spreading business and industry outside the confines of Metro
Flexible working spaces
One of the bright spots in the country’s commercial real estate market is the increasing popularity of flexible working spaces, which are classified into serviced offices and co-working spaces. Flexible working spaces in the Philippines continue to attract commercial property seekers because of their lower rental costs and flexibility, as well as their ability to provide simplicity and convenience, foster collaboration and innovation, and encourage community-building, according to a study conducted by Jones Lang.
The growth of flexible work spaces in the Philippines can be credited to the demographic shift towards a younger and more tech savvy workforce. According to Jones Lang, Makati and Bonifacio Global City continue to be the preferred locations for flexible work spaces due to the presence of businesses in these areas. The supply of flexible work spaces in the Philippines is expected to expand their footprint in Metro Manila, creating new and alternative opportunities for property market investors. These flexible work spaces are likewise anticipated to expand in other property hotspots across the archipelago.
Sustainability and other green initiatives
Another key trend in 2019 is the rise of registered and certified green buildings. Developers are aiming to receive high scores from credible rating tools such as BERDE, or the Building for Ecologically Responsive Design Excellence rating system, by the Philippine Green Building Council. This trend for green initiatives in the real estate sector is expected to make 2019 as a banner year when it comes to sustainability among property developers, becoming catalysts themselves for other property development firms to follow green standards in their future development projects.
Most innovative property project
With all these developments and innovative ideas helping change the landscape of the country’s real estate sector, KB Reality Group the Philippines’ foremost property portal, will be hosting The Outlook Awards Gala this October and award the most innovative property development project in the country.
Following the success of its first run in 2017, The Outlook by KB Realty Group co-presented by Philippine Daily Inquirer Property, recognizes leading industry projects and developers of the Philippines as selected by an esteemed panel of judges, and based on a survey participation of 10,000 active property seekers annually. With technology and data becoming important tools in the industry’s arsenal, Lamudi is in a prominent position to change the traditional ways of property searching.
With an average of 2.8 million monthly visitors last 2018 and hosting over 100,000 active properties, Lamudi is at an advantage to understand the needs and wants of the Filipino property seeker.
In addition to the awarding of real estate excellence for 2019, the gala will host keynote speakers from the real estate industry, offering an unparalleled opportunity for discussion and knowledge sharing.
The Outlook by KB Realty Group is an annual gathering of some of the most prominent professionals in the country’s real estate sector.
