- Affordable prices and favorable exchange rate appeal to foreign investors.
- A booming economy with 6.1% GDP growth in 2019 drives capital appreciation for properties.
- High annual rental yields of 7-10% make it an attractive investment opportunity.
- Favorable laws and regulations make entering the market easier for foreign investors.
- A stable political climate ensures the safety of investments.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
The Philippines is a rising star in Southeast Asia, with a growing economy, a young and tech-savvy population, and a stable political climate. These factors make it an attractive destination for foreign investors, especially those interested in the real estate market. This blog post will explore why foreign investors should consider investing in real estate in the Philippines. From the affordable prices and high rental yields to the favorable laws and regulations, it will cover all bases on what makes the country an excellent investment opportunity.
1. Affordability
One of the main attractions of investing in real estate in the Philippines is the affordability factor. Compared to other countries in the region, such as Singapore and Hong Kong, the prices of properties in the Philippines are relatively lower. This makes it easier for foreign investors to enter the market with small investments. In addition, the favorable exchange rate of the Philippine Peso against the US dollar makes it easy for foreigners to get more value for their investment money.
2. Growing Economy
The Philippine economy has been growing steadily over the past decade and is expected to continue upward. With a GDP growth rate of 6.1% in 2019, the country is on track to becoming one of the fastest-growing economies in the region. This growth is attributed to various factors, such as the government’s investment in infrastructure, the growing outsourcing industry, and the increasing popularity of the Philippines as a tourist destination.
Many investors now consider properties in the country’s capital due to the booming economy and the prospect of capital appreciation. For example, a condo near Okada Manila, a popular casino and hotel complex in the Entertainment City district, offers potential investors a good opportunity for capital appreciation. This is because the proximity of these properties to a major entertainment and leisure hub makes them attractive to potential renters and buyers.
3. High Rental Yields
Another reason why foreign investors should consider investing in real estate in the Philippines is the high rental yields. With a growing economy and a booming tourism industry, the demand for rental properties is high in cities such as Manila, Cebu, and Davao. Foreign investors can quickly achieve returns of 7-10% annually on their investments, making it a lucrative opportunity.
4. Favorable Laws and Regulations
The Philippine government has implemented several laws and regulations that favor foreign real estate investors. One of these is the Real Estate Investment Trust (REIT) Act of 2009, which allows investors to invest in income-generating real estate properties without owning them. This law makes it easy for foreign investors to enter the market without dealing with the paperwork and regulations involved in buying and holding properties.
5. Stable Political Climate
The Philippines has a stable political climate, a crucial factor for foreign investors. Because of this, foreign investors can rest assured that their investments will be safe and protected.
a. Pro-business government
The Philippine government is pro-business and has implemented various policies to attract foreign investments. This includes tax incentives, duty-free regulations on imported materials, and a strong emphasis on developing infrastructure in the country.
b. Political stability
The country has enjoyed stable political and economic conditions for many years, a major plus for foreign investors looking to invest in the real estate market. This stability is also reflected in the country’s low crime rate, making it a safe and secure place to invest in real estate.
c. Ease of doing business
Foreign investors looking to invest in real estate in the Philippines will find it easy to do business here. The government has streamlined processes for foreign companies to do business in the country, making it easier and faster to set up a business.
d. Transparent Rules and Regulations
Foreign investors can be assured that the rules and regulations governing real estate investments in the Philippines are transparent. The government has put in place measures to protect investors.
Investing in real estate in the Philippines is an excellent opportunity for foreign investors looking to diversify their portfolios and capitalize on the country’s growing economy and stable political climate. With its affordability, high rental yields, favorable laws and regulations, and transparent rules and regulations, it is an attractive destination for those looking to make a sound investment.
Investing in the Philippine real estate market is an excellent way to capitalize on a country with so much potential and such positive growth prospects. With the right investment and due diligence, foreign investors can reap great rewards from investing in real estate in this country.
