Twin reforms to boost PHL property sector, attract global players — Colliers

PRESIDENT Ferdinand R. Marcos, Jr. recently signed two measures that are likely to help lift the property sector.

- By Joey Roi Bondoc

The laws will provide a major boost to Philippine real estate that still reels from the debilitating impacts of the coronavirus pandemic and the POGO exodus that left a huge void in the Metro Manila office and condominium segments.

We are now waiting for the implementing rules and regulations of these recently enacted laws but at the outset we see them playing pivotal roles in attracting investments and expediting the implementation of big-ticket infrastructure projects.

EXTENDED LAND LEASE A PLUS FOR PHILIPPINE PROPERTY

One of these measures is Republic Act (RA) No. 12252 or a law liberalizing the lease of private lands by foreign investors. The law extends the stability of long-term lease contracts for industrial estates, factories, agro-industrial ventures, tourism, agriculture, agroforestry, and ecological conservation from 50+25 years to up to 99 years.

More foreign investments in the leisure and industrial sectors should be beneficial to Philippine property players. More Philippine developers can partner with foreign hospitality brands and develop more accommodation facilities and convention centers across the country and maximize the Philippines’ improving infrastructure backbone. This is important as the government has been aggressive in rehabilitating and modernizing airports across the country. These efforts are essential especially with the Philippine government setting a lofty goal of attracting 12 million international visitors in 2028.