More and more foreign companies and entities are investing in Philippine properties, which is one factor contributing to the property boom in the country. From commercial office spaces to luxurious residential condos, demand for space, especially in the major central business districts (Makati, Fort Bonifacio, and Ortigas), is steadily increasing, encouraging developers to provide more supply. In fact, for residential properties alone, both capital values and rental values have posted an increase, showing the strong performance of the local real estate industry.
In this week's infographic, we have listed down some of the factors that encourage investors to shop for properties in the Philippines, which fuels the performance of real estate markets. Hopefully, more businessmen and starting investors would catch on the phenomenon and be encouraged to put their money in the Philippines.
- With lower taxes and more open property laws, the Philippines is considered a more foreign investor-friendly destination.
- The more restrictive property tax laws and higher taxes in Hong Kong and Singapore are encouraging Asian investors to move to the Philippines. Side note: This year HK and SG imposed higher taxes to discourage foreigners from owning properties.
- With lower prices per sqm, residential condos and commerical and office spaces in the major CBDs in the Philippines post greater yields compared to other areas in Asia.
- BPO is also creating the demand, not just for office space, but also for residential condos as expats opt to buy properties instead of just renting.
- Vacancy rates in the CBDs are also very low, showing investor confidence and signaling sustainable growth in the country.
For more information about investing in residential and commercial properties for sale in the Philippines, contact KMC MAG Group today.