The Philippine property sector is poised for growth, driven by economic policies, infrastructure investments, and expected rate cuts in 2025. Healthy consumer spending, innovations in real estate investment trusts (REITs), and extended government support are seen to enhance market resilience and investor appeal further.
Deeper cuts, greater purchasing power for Filipinos
The Bangko Sentral ng Pilipinas (BSP) said it will likely implement more interest rate cuts in 2025. This should prop up domestic spending, which slowed in 2024.
Colliers View:
Colliers believes that further interest rate cuts will have a substantial impact on key segments including residential, retail, hotel, office, and industrial. Lower interest rates will partly prop up personal consumption, which should encourage more spending in the retail and leisure sectors.
The easing of policy rates will also be beneficial for traditional firms and industrial locators planning to expand their operations. Lastly, lower interest rates should result in lower mortgage rates which will likely help revive demand in the residential market.
‘Build, Better, More’ a plus for Philippine property, economy
Infrastructure spending grew by 55 percent in November 2024 compared to the same period in 2023. A portion of the outlay was allocated for the government’s counterpart funding for
railway projects.
The continued allocation of between 5 percent and 6 percent of the country’s GDP on infrastructure should keep the Philippines at par with its competitive Asian peers including China, Singapore, Malaysia, Thailand, and Indonesia. Ramped up infrastructure spending should support the property sector’s recovery.
Colliers View:
The creation of more economic zones plays a crucial role in enticing more foreigners to invest in the Philippines. The property sector benefits from this especially the office and industrial segments.
Source: Inquirer.Net
