An opportune time to invest in real estate

It's evident that the residential property market has been facing challenging times, especially with the large amount of unsold condominium units on the market, which will take years to sell.

- CATHERINE TALAVERA

However, times of challenge also give rise to opportunities, in this case, for property buyers who are seeking long-term investments. With the country's strong economic fundamentals and attractive terms offered by developers, sources in the property development industry say that now is an opportune time to invest in a residential development.

Strong fundamentals

The Philippines is currently displaying sound economic fundamentals, as seen in indicators such as the continued growth in the country's gross domestic product (GDP) and controlled inflation levels.

In 2024, the Philippine economy grew by 5.6 percent, slightly faster than the 5.5 percent growth in the previous year, making it the second-fastest growing economy in Southeast Asia after Vietnam.

For this year, GDP is expected to grow by six to eight percent, signaling sustained economic expansion.

Diversified professional services firm Colliers Philippines expressed optimism about the continued growth of the economy.

"The sustained pace of economic expansion makes the Philippines one of Southeast Asia's bright spots. Consumer spending slowed in 2024, but tempered inflation, as well as the implementation of interest rate cuts, should provide a boost to the household expenditure-led Philippine economy. The Philippines should benefit from economic pump-priming activities driven by direct and spillover impacts of election spending this year," Colliers said in a report.

"Colliers is optimistic that sustained growth in 2025 will continue to help lift the property sector, especially the Metro Manila residential and office segments that continue to reel from the adverse impacts of the pandemic and the POGO exodus," it said.

Average inflation in the country reached 3.2 percent in 2024, slower than the six percent in the previous year.