Real estate developers in the Philippines are shifting their attention away from political instability and focusing on making the country an attractive investment destination, according to a property consultancy firm.
Joey Roi Bondoc, director and research head at Colliers Philippines, on Tuesday said the developers are increasingly tuning out political noise and focusing on more pressing matters such as the National Land Use Bill and the Right of Way Acquisition Act instead. “I think developers, investors, buyers, and businessmen have successfully isolated themselves from political biases that typically influence business,” Bondoc said at a recent briefing.
As the elections approach and local infrastructure projects ramp up ahead of an election ban, Bondoc said such projects could significantly increase property values. “Infrastructure projects tend to drive up land prices, creating further opportunities for property owners and investors,” he explained.
Additionally, Bondoc pointed out that presidential elections have historically had a positive impact on real estate sales, particularly within the first year of a new administration. “Whoever sits in Malacañang, we see a spillover effect on real estate sales,” he added.
Despite political divisions, Bondoc said that both the current and previous administrations have implemented reforms beneficial to the property sector. These include the liberalization of the economy, which has bolstered demand for retail and office spaces. “Developers are optimistic about the pro-business reforms being enacted, which shield the real estate sector from the political noise,” he said.Bondoc also noted the country’s recent removal from the Financial Action Task Force’s grey list as a significant factor helping boost the real estate market. “This development reduces transaction costs for Filipinos working abroad, allowing them to send more money back home, which in turn boosts residential purchases and leasing activity,” he said, further indicating a positive outlook for the real estate sector moving forward.
