The rise in the country’s economic growth is good news for the real estate market as it opens fresh income opportunities for investors. An eye-catching segment within this sector is luxury. More than spending high prices, investing in high-end properties also means valuing uniqueness, comfort, and exclusivity in a space.
After a disruptive recession in 2020, the Philippine economy is almost back. For real estate and investment company Colliers Philippines, this will boost growth in economic hubs inside and outside Metro Manila.
“While the luxury residential segment is once again taking center stage in Metro Manila — the demand for which is partly driven by an affluent and discerning market — Colliers has been seeing this trend in key residential hubs outside of the National Capital Region, with some of the most expensive projects located in master-planned developments in Pampanga, Bulacan, Cebu, Davao, Bacolod, and Iloilo,” Colliers Philippines added in a statement.
According to the firm, there has been a steady demand for luxury developments in the Philippines. The sector increased from 5% in 2021 to 34% in 2022. In addition, Colliers noted about 6,000 premium and ultra-luxury units in 2022, accounting for 25% of high-end properties that were launched last year.
These numbers hint that, the demand for high-end properties will less likely to go away anytime soon; it will continue to increase and will likely influence more support from investors.
Luxury real estate investments continue to be high in demand because investors know that owning luxurious properties does not only entail living a life of luxury but also building financial security through a source of income that produces results in time.
Real estate is known as a smart investment because investing in one can increase its capital growth and value over time. Whether investors intend to use it now or later, it provides better investment returns, according to online real estate platform Lamudi Philippines. With its continuous high demand, more high-end properties tend to sell out fast; and the Philippine real estate market is not only seeing an increase in domestic interest but also in the global context.
Another unique feature of luxury real estate is its prime location which enables exclusivity and luxurious lifestyle, typically located in areas where everything is accessible, specifically, luxurious activities that people can enjoy, whether it’s high-end shopping, entertainment, or various dining options.
In addition, luxury property designs are everything but generic. The luxurious lifestyle such properties enable are coupled by modern and exquisite designs — like smart interior design features and open and greener spaces — that are aesthetically pleasing and radiates comfort and security to the homeowners.
Privacy and security are also key features that keep investors drawn to high-end properties. Luxury properties, Lamudi Philippines added, are regarded as the “most secured estates,” because they are built with enhanced security management and systems.
Nevertheless, investing in luxury real estate should be done carefully and properly. Otherwise, it can be a costly mistake.
Lamudi Philippines recommends investors, first, to have a clear goal in mind. Investors should ask themselves what they hope to accomplish by investing in luxury real estate. Setting specific objectives can help them identify what is an ideal property for them to invest in. Then, investors should ascertain their budget for investing. They need to know how to properly work on a budget they can afford.
After getting these first two settled, investors should factor in the location of the property, which is one of the most important considerations in making such investments. It is preferred to choose a location that is rich in opportunities, accessible to commercial estates and business districts, and capable of providing convenience and efficiency to residents. Investors should also consider properties crafted by well-recognized real estate developers, especially those that are reputable for consistently producing high-quality developments. — Angela Kiara S. Brillantes
