Articles
Is Now the Right Time to Buy Property in the Philippines? Here’s What You Need to Know Before 2025
By : Sofia Mendoza
Date Published : October 7, 2024
5 min read
As we approach 2025, many potential buyers are wondering whether now is the right time to invest in real estate in the Philippines. With various factors influencing the property market, it's essential to understand the trends, opportunities, and potential risks. Here's what you need to know.
1. Real Estate Market Trends in the Philippines
The Philippine real estate market has remained resilient despite economic fluctuations. One key factor driving this resilience is the continued investment in infrastructure projects by the Department of Public Works and Highways (DPWH). These projects are improving accessibility to key cities like Metro Manila, Cebu, and Davao, making properties in these areas more desirable. Check for ongoing and future infrastructure projects by the Department of Public Works and Highways (DPWH).
Key Tip:
Research areas with ongoing infrastructure developments for potential value appreciation in the near future.
2. Year-End Promotions and Flexible Payment Terms
As 2024 comes to a close, many developers are offering year-end promotions and flexible payment terms to attract buyers. This includes discounted rates, longer payment periods, and low down payments, which can significantly reduce the financial strain on buyers. Consider checking offers from Pag-IBIG Fund, a major provider of housing loans in the Philippines, for low-interest loans and flexible payment options.
Key Tip:
Take advantage of year-end deals and secure low-interest rates before 2025.
3. Low Interest Rates and Mortgage Options
Interest rates for housing loans in the Philippines have remained relatively low throughout 2024, making it easier for buyers to secure financing. Many banks and lenders, such as Bangko Sentral ng Pilipinas (BSP), offer competitive interest rates on real estate loans. Check current interest rates from Bangko Sentral ng Pilipinas (BSP) to help plan your mortgage.
Key Tip:
If you're looking for convenience, consider condos in prime urban locations that offer lifestyle amenities.
4. Demand for Condos and Mixed-Use Developments
Cities like Makati, Bonifacio Global City (BGC), and Ortigas continue to see high demand for condominiums and mixed-use developments. Condos in these urban centers are popular for their convenience, lifestyle amenities, and proximity to key business districts. If you’re considering a city-based property investment, condos remain a strong option.
Key Tip:
Look for properties in tourist areas to take advantage of the short-term rental market.
5. Investment Opportunities in Tourist Hotspots
If you’re thinking about investing in rental properties, tourist-friendly locations such as Cebu, Boracay, and Tagaytay continue to offer promising opportunities. The demand for short-term rentals has surged post-pandemic, providing steady income for property owners in these areas. Explore potential rental opportunities by considering the tourism trends and investment benefits provided by the Department of Tourism (DOT).
Key Tip:
If you work remotely, consider properties in suburbs with larger spaces and access to nature.
6. Work-From-Home Trend Driving Demand for Larger Spaces
The work-from-home trend that surged during the pandemic is here to stay, and buyers are increasingly looking for properties that offer extra space for home offices or more peaceful, suburban living. Many suburban areas are becoming more popular as they provide bigger spaces and quieter environments, all while remaining accessible to major cities via new infrastructure.
Key Tip:
If you work remotely, consider properties in suburbs with larger spaces and access to nature.
Conclusion: Is Now the Right Time to Buy?
With year-end promotions, flexible payment options, and rising demand in urban and tourist areas, 2024 remains a promising year to buy property in the Philippines. However, it’s essential to do your research, understand the market trends, and consider your long-term financial goals before making a purchase. Take advantage of current offers and interest rates before they change in 2025, and ensure that your investment aligns with your personal and financial needs.
