ASK anybody across any market about how their 2016 was, and most likely you’ll get a fairly neutral to negative response. This ambiguity bordering on the red holds true for real estate, which saw a decline in sales and new development.
However, with a new year come new opportunities. Last week I wrote about Lamudi’s report on residential condominiums that are set to join the urban skyline. This week let’s get a little more general, put idealism aside, and instead look at what the market experts are saying about general trends that will define this year. Find out if 2017 will go down as a win or a flop for real estate with these five trends to watch out for.
Millennials at the helm. Hearing how millennials are leading the market is nothing new. This idealistic but thriving generation of trendsetters continues to control much of the country’s purchasing power with new money in their bank accounts and more properties catering to their lifestyle at their fingertips. Developers and brokers will still leverage on millennial culture and influence in 2017.
However, what may be surprising to hear is that, while most developers are offering
smaller albeit fashionable spaces, most millennials are actually looking toward more spacious places. They understand that a heftier price tag may come with the extra legroom but it’s a cost many millennials are beginning to be comfortable with.
It is essential to keep in mind that millennials aren’t limited to youngsters still hitting the books or fresh out of college yuppies—this term covers even those in their mid-30s, an age wherein most would be earning enough to give them more options.
Urbanization is key for business. As more and more businesses sprout, office space in prime locations will continue to be a precious commodity.
While it’s old-hat for some modest businesses to base their operations out of private subdivisions or even far-flung provinces, expect to see even bigger-name companies doing the same as long as there is a level of urbanization in the area.
“Those kinds of neighborhoods are doing very well and the more sterile kinds of communities and office districts have been lagging,” said Andrew Nelson, chief economist of Colliers International, in an interview.
In our country, we can already see this trend of expansion positively affecting infrastructure and real estate in many places outside of bustling Metro Manila. Davao and Baguio are leading the new business hot spots by offering lower costs but with a built-in access to excellent manpower.
Tech is still king. While some things that millennials consider as necessities might be generation-specific, tech remains a crucial part of every age group’s daily activities.
Most tech-equipped spaces will still prove attractive, but even more exciting than this is the growing number of apps and tools that market insiders can use. Last year we discovered how big players in real estate are using virtual reality, apps, web sites, and 360 technology to boost and modernize their sales. However, I’ve read that in 2017 drones will introduce a whole new level of immersion for the interested occupant.
Many Philippine-based companies are already making the most of the social network-savvy populace by strengthening their online profiles. With a drone, open house just got a lot bolder.
Commercial investors will keep coming. The curious and cultured Filipino landscape is still fertile ground for many large companies—both local and international—to grow roots in.
In 2016 the Philippine GDP growth is expected to be pegged at over 6 percent, cementing the country’s status as the second most sought-after Asian country for investors—tied with Vietnam.
The roaring income from business-process outsourcings and overseas Filipino workers also continues to support the local economy, increasing purchasing power and, thus, making way for new land and office-space owners.
A 2017 report by JLL quoted Stuart Crow, its head of Asia Pacific Capital Markets, as saying, “There has been a lot of capital around in 2016, with new investors attracted to Asia whether they are large sovereign funds, pension funds or Chinese insurance companies. These investors are allocating capital to real estate.”
Retail spaces will flourish. Although last week I reported the development of new residential condominiums in the country, interestingly, retail spaces are also expected to make their mark in the property landscape in 2017, effectively balancing supply and demand.
While residential properties will be more demure, probably sticking to the hot trends of shared spaces and customizable designs, retail spaces will be more in demand.
Although many businesses and start-up entrepreneurs are opting for going online instead of going for the store-front, the need for brick-and-mortar retail spaces for both local and international brands is rising.
Whether 2017 will prove a win or a fail is yet to be seen, but the promising economic upswing, re-energized real-estate players and motivated working masses are some very strong forces to be reckoned with.
Image credits: Source: https://www.skyscrapercity.com/showthread.php?p=136180392, Source: https://www.getfoxy.com/2009/11/happy-thanksgiving-from-manila-philippines/