KEY INSIGHTS FROM REBAP REAP 2023: A GLIMPSE INTO THE PHILIPPINE REAL ESTATE LANDSCAPE
The Real Estate Brokers Association of the Philippines (REBAP) held its first-ever Real Estate and Allied Partners (REAP) Expo 202. This gathering brought together industry experts to discuss crucial aspects of the Philippine real estate market. In this write up, I will delve into three key takeaways from the event that shed light on the prospects of the Philippine real estate industry.
Demographic Dividend – The Youthful Filipino Population
One of the key takeaways from REBAP REAP 2023 was the recognition of the Philippines' young population as a catalyst for the surging demand for real estate in the years to come. The country boasts a sizable working-age population eager to invest in properties. This demographic edge, if harnessed effectively, presents a golden opportunity for property developers and brokers.
The youth's quest for homeownership, coupled with urbanization trends, is expected to drive demand for residential units, creating a robust market for real estate. Additionally, this growing demographic will fuel the demand for commercial spaces, from retail outlets to office complexes, as the Philippines continues its march towards becoming a global economic player.
The Untapped Potential – Beyond Metro Manila
REBAP REAP 2023 emphasizes the vast untapped potential of the Philippines' real estate market beyond the boundaries of the National Capital Region. While the NCR contributes a staggering 40% to the country's GDP, it occupies just 0.21% of the entire Philippine landmass. This glaring statistic highlights the immense opportunities waiting throughout the remaining 99.80% of the country's landmass.
Investors and developers should consider diversifying their portfolios and exploring these territories beyond the capital. The Philippines' regions offer unique advantages, including abundant natural resources, cultural richness, and tourism potential. Expanding real estate development beyond the NCR not only fosters economic growth but also addresses the urgent need for inclusive development, benefiting both urban and rural communities.
Resilience in the Face of Global Turmoil
A particularly reassuring takeaway from the REAP 2023 is the resilience of the Philippine economy to global economic turmoil. Historical data showcased that the Philippine economy is primarily influenced by internal factors. Past economic downturns, such as the ‘80s recession due to political instability, the ‘90s negative growth caused by El Niño, and the 2020 recession triggered by the COVID-19 pandemic.
This intrinsic resilience makes the Philippines an attractive destination for real estate investments. Even amidst global economic uncertainties, the fundamentals of the Philippine economy remain relatively stable. Investors can find solace in the fact that the nation's economic performance is anchored more in local factors than in the unpredictable dynamics of the global economy.
Overall, REBAP REAP 2023 provided invaluable insights into the Philippine real estate landscape - all point towards a promising future for the Philippine real estate sector. As stakeholders in this dynamic industry, understanding and harnessing these takeaways will be pivotal in navigating the exciting opportunities and challenges that lie ahead. With strategic planning and prudent investments, the Philippines' real estate market is poised to flourish in the years to come.