as published in grit.ph by Amiel Pineda

State of Real Estate in the Philippines

On the consumer side, factors like providing housing for employees who want to live near their offices and strong remittances from OFWs (more than 50% of which are invested in real estate), combined with the increasing urban population, are catalysts driving the demand for condominiums and residential units as well as businesses that cater the needs for these homeowners.

For the investors, this increased demand of new residential and mixed-use projects both within and outside of Metro Manila provides them with plenty of good reasons to invest and grow their money.

Lastly, recent projects and developments initiated by the government like the construction of MRT connecting QC to Bulacan, improving road networks, and expansion of airports are some of the factors that should drive the development of real estate projects even further.

To be honest, I didn’t really need to read about reports to prove the ongoing boom in our country’s real estate industry.

In the last few years, I’ve seen multiple constructions for new condominiums and residential units just within our place of residence. I noticed multiple constructions of condos, apartments, and townhouses, both by big corporations and private investors.

Even small businesses pop up like mushrooms around areas that are being primed for development.

How Real Estate Investing Works

I rarely watch TV. But when I do, I always seem to chance upon those shows where they buy derelict houses and then remodel them into something incredible you’d never think a stinkhole could look so good.

The term for this “buy-renovate-sell for profit” strategy in real estate is called “Flipping”. It’s one of the many ways real estate can generate income either via rentals or straight markup from the original purchase price (minus renovation expenses).

To keep things real simple, real estate investing is all about buying or owning a piece of property with the purpose of generating a profit.

So whether that’s a new condo that you’re still paying for or a warehouse that your family owns, if you can sell it or have it rented to provide some form of revenue, that’s real estate investing.

There’s even a crowdfunded-style of real estate investing that works like a mutual fund.