The real estate segment is one of the key players in our global and local economy. It is perhaps one of the in-demand and conducive assets for investors and homebuyers, given all the benefits they can reap from this industry. In the Philippines, real estate market also plays a major role in our economic development. That said, when the COVID-19 pandemic hit, real estate took most of its blow.
At the height of the pandemic, the industry faced the threat of a global recession. The first in the segment to take the hit were properties for offices, business process outsourcing (BPO), and co-working spaces. As the health crisis grew worse, more foreign companies decided to pull out of the country. This now brought much distress, not only to BPO companies, but to the rest of the Philippine economy.
With the Covid-19 pandemic still present in the country, trends in the global and local real estate industry are emerging. In fact, the prominent names in the segment strived to explore different ways and efforts to stay afloat and relevant to the market's changing behavior and lifestyle preferences.
The shift in Philippine real estate trends
After people were asked to stay indoors, they have somehow encountered realizations. Some of these have to do with wanting greater comfort and functional, high-quality residential developments. The need to have a safe home and community has been amplified more than ever.
People now realized the need for healthy spaces and more spacious homes. The dream home has become more than just a roof over our heads but a place that fosters growth. It has to be secure, safe, and convenient. The perfect home is only a few minutes away from all basic human needs. The most ideal home, especially for professionals and their loved ones, is a house with good cell tower reception, and with green spaces to relax. In short, people need homes with optimal living conditions.
Trends overcoming Philippine real estate challenges
The current real estate capabilities can provide for all of these customer needs. The challenge was communicating this value to the clients that was further hindered the physical restrictions. To bridge that gap, real estate giants invested and focused their efforts in technology. Below are the top real estate trends that continues overcome challenges and shape the property market:
Digitalization is becoming a world trend
The real estate sector is now adopting new processes, particularly bringing an extensive and holistic experience to its users. With the limitations brought about by the pandemic, developers are setting digital innovations. Things are getting revamped starting from their core business processes, to how these new procedures can be implemented for the convenience of the clients and investors. A classic example of this is its mode of payment. Payments can now be made online to get rid of the hassle of traveling or the need to step outside.
Millennials are becoming the key team player
Surveys have shown that property seekers between the ages 24-40 years old are the fastest-growing segment of homebuyers. It brings light to the fact that this generation is already earning a higher salary. They are the type of homebuyers particular about their investment ventures and modern home technology that fits their lifestyle. Since most millennials are digital-savvy, they are most likely to search online for more property listings than other generations. Though some, especially young pros, usually rent as a starter, a lot from their generation is buying entering real estate properties. And these are residential spaces in major cities too! These people are securing their finances differently from the previous generations.
Amenities and multi-purpose spaces are emerging
With the need to stay home, homeowners seek recreational spaces to get in shape or do the things they love. For example, research revealed that the fitness landscape had transformed dramatically. Industry experts have predicted a massive shift where people are more inclined to have at-home fitness experiences. This can be a positive indicator for a new lifestyle preference, especially for people experiencing the new work-from-home setup. Commute time can now be allocated to other activities such as exercising, hobbies, and family bonding. Some people now seek a bigger home with extra space for themselves and for all the other activities. Developers such as Camella modernize existing lifestyle amenities by adding additional features suitable as activity areas.
The popularity of video has gone hand-in-hand in today's marketing arena. It made it so big that it is vital to stay on top of the latest trends. In today's digital age, users are more engaged in watching videos that keep them updated about what is happening around them. At the same time, they want to be educated about complicated things they do not understand. Homebuyers from any part of the world can capitalize on this type of content to be immersed in the homes they are eyeing to invest in.
Virtual 3D tours are on the rise
Virtual 3D house tours have taken the world by storm. Just like videos, this technology allows the real estate industry to give their potential buyers a perfect glimpse of every corner of the room through few clicks. It also gives the potential buyers safety and helps minimize the risk of being exposed outside. Another upside of this technology is that even overseas Filipino workers can now look for their real investments in the Philippines online.
Back to the Philippine real estate trends, 360 images, virtual 3D site viewing, property tours, and even augmented reality are slowly innovating communications. These technologies helped industries and property investors adjust to the new normal. They give almost the same feels, sights, and sounds from real-life experience. The developers had to make some adjustments and brokers and sellers also went online to reach clients looking for properties.
Smarter homes are making their way in
Adapting to the new work-from-home setup has somehow brought light to the additional needs for more efficient work at home. This is why Camella, the Philippines' largest homebuilder, innovated the concept of a smart home. By upgrading your regular home into a responsive space, you can enjoy features such as items around the house. You can then control these machines using only your mobile phones – from lights, door locks, windows, network connections, and many smart devices to appliances. This surely makes life easier. It also ensures safety and peace of mind by utilizing the device to check if all doors and windows are properly shut and if appliances are turned off. It also allows saving energy and monitor bills.
The future of real estate
The most concise way to describe the future of Philippine real estate is that it still leads in directing the pace of economic recovery. According to an article from Cushman and Wakefield, the money put in the real estate industry still are crucial contributors to the economy's recovery. The strong foundation of commercial real estate is also a big factor in the imminent bounce-bank of the industry. Comparing to 2020, prices for residential are showing good signs of recovery in the first quarter of 2021, as noted by Lamudi. Since remote work is prevalent now, the demand for a serviced apartment for accommodations of business professionals remained on the list of investments that contributes to the stable income stream. It is believed to continue further in the future and evolve in the following years.
“Balik-Probinsya” is here
As more Filipinos study or work-from-home, the demand for single-detached homes in the province is impending. It can spur the growth of real estate outside NCR. Investors are taking a look and considering moving to a quiet, clean, and peaceful environment like the province or areas near Manila to avoid the traffic, noise, and pollution, pushing developers to build more projects in the province.
What to look forward?
The good news is that the Philippine real estate was quick to adapt and overcome the challenges and negative impacts of the recent pandemic. Businesses employed technologies that made it easier to transition to the new normal to improve and maintain its top properties. The recent events showed the major role that technology has to play not only for the real estate players but also for its consumer. Experts in the industry now share optimism on the course the trajectory of Philippines real estate in the next few years. The best way to take advantage of this news? Find the most ideal property investment for you now to maximize its potential growth. Start with Camella's offerings or check out our home catalog.