Residential: Residential Properties in Metro Manila continue to surge, and the gap in Metro Manila land prices versus other major cities has never been so small. We may see more growth in new developments in neighboring cities outside Metro Manila.
Industrial: Among all real estate asset classes, industrial is still a crowd favorite among investors. More and more developers who previously did not have industrial assets in their portfolios are now shifting from traditional office spaces to industrial spaces. Compared to residential and vertical developments, whether it may be office spaces or residential condominiums, the cost to construct and raw materials are far greater than of industrial spaces. Lease terms and repairs and maintenance are favorable to the landlords as well.
REITs: The industry is still young and we foresee and anticipate portfolio diversification away from the usual office and retail REITs. Do watch out for exciting REIT expansion opportunities to data centers, logistics, and perhaps even tollways.
Where to invest: In terms of the location of your investment I would highly suggest looking at government infrastructure projects. Ongoing bridges and highways are currently being constructed at a pace unlike anything we’ve seen in recent years. Now is the perfect time to take advantage of the value in which these projects will impact the economic productivity and efficiency of that locality. Decentralization and decongestion of Metro Manila have been an initiative of the government since the previous administration.
