Real estate investment in the Philippines offers great opportunities for investor returns, but only if it is done right.
The rule applies to all types of properties, especially commercial buildings. For companies, having their own corporate building is a long-term investment that reduces rental expenses and allows diversification in its portfolio. A commercial building offers several income sources: office spaces, serviced offices, retail shops, stalls for food carts, and spaces for restaurants. These sources, coupled by the current market growth in the country, are really promising opportunities, but they are not without risk. So before being tempted into investment, it is important to take these key factors into consideration:
Financial Position: Consider your company's financial position. If you have a sound budget and solid capital, purchase prices and financing costs would be really low, so it would be something that your company can easily afford. The investment would also be worth it if your long-term business plan involves the use of the property.
Property Value: Assess the location of the commercial building for sale. Is it located in the business district or in the middle of a residential area? Does it have access to major thoroughfares and roads? Will it be accessible to your employees and to your clients? Is the building in good condition? These are just some of the questions you need to ask to assess if the building is right for your goals and your business.
Location: It would be smart to opt for a commercial building for sale in Makati or Fort Bonifacio because it is located near or inside major central business districts, although buildings in these locations may cost more. If you do not need to occupy the building and are simply looking to have another source of income, you may opt for buildings in next-wave locations. Just make sure that the area you choose has access to utilities and has potential to increase value.
Economic Indicators and Risks: Observe the market indicators. Buying property in a down economy may be attractive because of the cheap price, but it may be risky especially if you need the capital to have immediate returns. Meanwhile, investing in a property in a high economy may yield immediate returns. However, the market is volatile; it might go down when you least expect it, which can lead to increase in vacancy rates, lower demand for space, and losses for your investment.
Investing in a building is indeed a promising venture, but it carries risks that might be too difficult to handle for your business. This is why it is important to perform proper real estate research and to seek the advice of an expert.
We would love to answer any questions you may have about investments and available commercial properties for sale in the Philippines. Contact us today.