WHY THE RENT MARKET IS ONE OF THE BEST REAL ESTATE INVESTMENTS YOU CAN MAKE
With such a positive outlook for the Philippine economy this 2019, REAL ESTATE experts weighed in on the best and most promising investment opportunities to make for the year. And no surprise, the rental market is one of the top options for those interested finding the best investments or sources for passive income. This is the thanks to the country’s high rental yield at 7% growth, while vacancy rates remain low at 5%. So if you are looking for the perfect way to get in Real Estate, we have summarized the key reasons why you should consider in Investing in the Rental Market.
- THE RISING ECONOMY – The Philippine economy has been experiencing a steady growth since 2010. The positive outlook continues through 2019, with an expected growth of 6.5% making it the country with the highest economic potential in the region. This can be attributed to a variety of factors including the government’s dedication to a developing infrastructure under the BUILD BUILD BUILD PROGRAM , A strong tourism industry, a young workforce and high OFW remittances. According to Bangko Sentral ng Pilipinas, another factor is that the country has also entered into the “goldilocks state”, the perfect balance of low inflation and high growth.
- RISING DEMAND- As the economy rises, so does the demand for the rental market. This is theat result of the growing influx of foreign investments and businessman, specifically from the gaming in BPO industry that are looking to the rental market. for employee housing. Secondly, the rise in purchasing power of young professionals and millenials add to the increased demand for rental options. Especially, when according to a study by Lamudi 69% of Filipinos prefer to rent than to buy property. Meanwhile, the country’s tourism continues to grow by 8% with 2.2 million visitors in the 1st quarter of 2019 alone, and with the popularity of online home rental services such as AirBnb, rental investments are able to benefit as an alternative to hotels.
- RISING LIFESTYLE STANDARDS- Next, consider the attractive lifestyle offerings at the country’s central business districts such as Makati or Binondo Global City. With Manila’s traffic situation, foreign nationals and millenials prefer renting near their office spaces,not to mention the convenience of living near commercial establishments. Both factors help raise the attractiveness of rentals as a whole.
- LOW PROPERTY PRICES- Finally,compared to other Southeast Asian countries, property prices in the Philippine are significantly undervalued. According to the Global Property Guide’s listing square meter prices, the Philippines is currently fifth in the rankings of the most affordable property rates in Asia, with roughly $3,900 per square meter, versus Taiwan in sixth place with $10,000 per sqm, Singapore at the third spot at $13,000 and Japan as the most expensive at $28,000.
With all these convincing factors, it’s no wonder foreign investors are buying up Philippine properties in bulk. So if you are interested to know more or are looking to make your own investment in the rental market, just contact us.