Philippines realty development industry reaches new summits

Mariecar Jara-Puyod, Senior Reporter

The real estate and property development industry in the Philippines has reached new summits, overcoming global upheavals, and amidst economic fundamentals that include the unwavering remittances of overseas Filipino workers (OFWs) alongside their migrant counterparts.

This is according to visiting Robinsons Land Chief Marketing Officer John Richard “Chad” Sotelo, who claimed that “real estate is always a good investment” because of the over-all good return on investments.

The RLC Residences Senior Vice President and Business Unit Manager was interviewed on the recent sector developments, on the sidelines of the inauguration of the first international office of the Robinsons Land Corporation-Residential Division.

The UAE branch, headquartered in Dubai, is only the start. “Envisioned” is the establishment of four other overseas branches. It is pertinent that buyers are provided with all the required post-sale “face-to-face” customer service care ranging from updates on the “approval of bank loans, status of construction, and possible change of names in the contracts or deeds of sale.”

The UAE was prioritised because up to 12 per cent of generated sales in 2023 was courtesy of the Filipinos across the seven emirates. It is foreseen that the UAE office would serve the entire Gulf and Europe, considering “closer time zones.”

Philippine Consulate General-Dubai Vice Consul Aleah Gica said: “On behalf of the Philippine Consulate General in Dubai, I extend our warmest congratulations to RLC on the inauguration of its first international office. We commend RLC for this significant milestone as it expands its business and services to Filipinos abroad."

She added, "Aside from providing our kababayans with valuable investment opportunities, RLC’s presence will undoubtedly assist OFWs in making well-informed decisions for sound investments, safeguarding their hard-earned resources."

Sotelo said: “Real estate is generally doing well. If we talk about recent trends, the growth in real estate is happening outside of Metro Manila where the demand has slightly slowed down because of existing supply. People are looking for developments on properties in the provinces of Cebu, Pampanga, Bulacan, Rizal and Davao with a mixture of horizontal (house-and-lot) and vertical (condominium).”

In reply to the negative global domino effect of the ongoing two-year Russia-Ukraine War that escalated in March 2022, amidst the unpleasant consequences of the Novel Coronavirus pandemic, Sotelo claimed that all the 10 leading real estate and property developers, which occupy 70 to 80 per cent of the total market share, and the remaining 30 to 20 per cent “niche players” are “still growing versus their respective 2019 performance.”

Sotelo discussed the economic fundamentals that are vital to a nation’s progress. Local demand for affordable and socialised housing being addressed by certain industry players remain in demand because of a six million backlog based on latest Marcos Jr. Administration records. Wealth exists and the rich are constantly on the look-out for sound investments in the premium, upscale and luxury properties. OFWs and Filipino migrants have become “financially savvy,” keener in purchasing real estate properties not only for themselves but for their loved ones. Inflation rates have so far tapered to three to four per cent as against the previous five to seven per cent which may lead to the Central Bank of the Philippines to decrease bank interest rates. Business Process Outsourcing which has become a channel for investments is getting much better.