Real estate is becoming increasingly essential in addressing the demands of the world’s expanding population as luxury living becomes more prevalent. It is thought to be a solid, tangible asset that can develop over time and serve as a hedge against inflation and fluctuations in exchange rates. Furthermore, real estate is more volatile and predictable than other classes of investments such as stocks, bonds, and commodities, which are subject to market fluctuations. Home ownership can act as a basis for wealth building and financial stability. Properties are generally appreciated over time, allowing investors to diversify their portfolios and increase equity, which can lead to long-term financial gains.
Real estate can also be a dependable source of income. Rental houses can produce consistent revenue. Investors can ensure renters, profit from market demand, and generate passive income by carefully choosing and managing properties. This can offer financial stability even in times of economic uncertainty. Tax advantages and incentives are another benefit of real estate investing. Real estate tax deductions, mortgage interest deductions, and some maintenance-related expenses may provide tax benefits to investors. These deductions can boost the financial advantages of real estate investing while lowering the overall tax burden and raising the return on property assets.
Investors are keeping a close eye to grow their holdings as many nations are expanding their investment portfolios. The real estate market in the Philippines has been growing consistently, and investors find it to be a tempting alternative due to its relatively low entry barriers. Lower interest rates and tax expenses when purchasing and selling inside the nation are advantageous to investors. As discovered, the Philippines only imposes 12 percent VAT on real estate transactions, while Singapore and Hong Kong charge 17 and 15 percent, respectively. The country’s GDP grew by 5.9 percent in Q3 as a result of the post-COVID development in the region, which was fuelled by FDI in electronics, manufacturing, and IT services.
Due to urbanisation and population expansion, the majority of people prefer residential properties. To secure their financial future, the younger generation in the Philippines has expressed interest in making real estate investments. The demand for a contemporary and opulent lifestyle among young professionals has led to a growth in the number of condominiums. While growing at a somewhat slower rate than the 6.5 percent growth in Q4 2023, residential real estate prices of various types of new dwelling units in the Philippines continued to rise in Q1 2024, rising by 6.1 percent YoY. Quarter-over-quarter (QoQ) house prices increased by 1.1 percent after falling by 3.6 percent in Q4 2023. A notable rise in mixed-use properties was observed for more thriving and sustainable communities with a variety of amenities and services. They provide developers with opportunities for diversification and a higher return on investment.
Beyond bricks and mortar
PHirst Park Homes Inc., a company born from the partnership between one of the leading real estate companies in the Philippines, Century Properties Group, Inc., and the Japanese global integrated business enterprise Mitsubishi Corporation, is leading the real estate development in the Philippines. They embody the 4C’s principle, which encompasses complete homes, conceptual amenities, connectedness to life’s essentials, and a convenient homebuying experience. The Taza boasts to be one of the finest projects, with conceptive amenities brought to life. Some of the other known projects include Lipa, Batulao, San Pablo, and many more. The company offers a range of products tailored to different family types, including the Calista townhouse cluster, comprising the Calista End (corner lot) and the Calista Mid (inner unit), as well as the Unna single attached unit. This commitment to excellence exceeds the current standard of living.
In 2021, they launched four projects with a sales value of P14.31 billion. PHirst Homes successfully launched seven communities and 9,349 units in key growth areas of Luzon: Tanza, Cavite; Lipa and Nasugbu, Batangas; San Pablo and Calamba, Laguna; Pandi, Bulacan; and Magalang, Pampanga, collectively worth P11.25 billion in sales value. As of the end of December 2020, PHirst Park Homes completed 1,536 house and lot units in its Tanza and Lipa locations. At the World Business Outlook Awards 2024, PHirst Park Homes Inc. clinched the title of Fastest Growing Real Estate Company Philippines 2024.
They deserved the title for their innovative housing solution by delivering homes that exceed the standard market offerings. Their developments include unique amenities such as outdoor cinemas, theme parks, and village shuttles, providing a comprehensive living experience. Additionally, their resilience and growth stood out amongst its competitors, thus marking them as clear winners. These achievements reflect the company’s strong market presence, strategic expansion, and innovative approach to residential development.
Paving the path for the future
The Philippines’ real estate market is expanding rapidly due to several factors, including consumer preferences for residential properties, the proliferation of condominiums, the construction of mixed-use structures, and the existence of a sizable Filipino diaspora. Underlying macroeconomic variables that bolster these tendencies include steady economic growth and government initiatives that support the real estate industry. PHirst Park Homes Inc., with its diversified portfolio, offers exactly what the consumers are looking for, thus making them a favourable choice.
Blog by Tamanna Shaikh
