Key drivers boost demand and investment potential in the Philippines’ burgeoning luxury condominium sector, exemplified by the prestigious Foster + Partners-designed flagship development The Estate Makati. Experts foresee increased opportunities as the economy flourishes, positioning the real estate market for long-term growth.
When examining the development of the Philippine economy, the local real estate industry emerges as a major player, both spurring employment and providing opportunities for investment. In countries like Hong Kong and Singapore, direct foreign investment in the real estate sector has steadily contributed to market prospects. It may now be prudent to explore whether the time is ripe for real estate in the Philippines to garner similar attention. This is especially relevant as it pertains to the luxury condominium market, which welcomes foreign ownership under certain conditions.
Expert Insights Highlight Positive Outlook
David Leechiu, the co-founder and CEO of Leechiu Property Consultants, Inc (LPC) brings over 27 years of expertise in real estate to the table. Widely recognized as one of the leading commercial real estate brokers in the Philippines, he is also a Member of the Board of Trustees of the IT & Business Process Association of the Philippines (IBPAP). LPC can boast facilitating the lease arrangements for more than 1 million square meters of office space, and real estate sales of more than USD 2 billion. David’s insights as a resource person on the sector are substantive and invaluable.
“The investment climate in the Philippines has improved significantly over the recent years,” David states. “We have seen increased participation both on the buyer side and developer side, even in areas that allow longer straight leases for foreigners.”
With the Philippine Condominium Act (R.A. No. 4726), ownership restrictions were relaxed, allowing foreign nationals and corporations to fully own a condominium or townhouse in the Philippines, providing an avenue for property investment and personal use.
Open Doors and Opportunities for Investors
“The luxury high-rise condominium market segment has consistently performed well,” David continues. “There has been steady growth driven by the increasing demand from both local and foreign investors.” Typically, high-rise condominium developments are within the core Central Business Districts of Metro Manila, or in other highly developed, secure, and desirable neighborhoods. He advises developers in this space to improve their projects’ appeal by offering more compelling features that incorporate green design principles, more careful curation of amenities, and modern lifestyle offerings that set them apart.
David explains that the key to raising a project's desirability is catering to the goals of different types of investors. Some may be interested in buying properties as investment vehicles, giving more weight to rental income and capital value appreciation. Thus, potential rental yields, property management services, and resale potential are their most important considerations.
"Foreign investors looking for future end-use and to retire, would look at the project’s lifestyle amenities, community atmosphere, and long term appreciation potential,” David points out, noting how senior-friendly building amenities and transport systems then become the priority, along with access to medical facilities and technology.
The Estate Makati: Reaching New Heights
The Estate Makati (TEM) on Ayala Avenue, a flagship residential development by SM Development Corporation and Federal Land, ticks all the above-mentioned boxes. As the first Foster + Partners project in the Philippines, the tower carries significant architectural weight. The Pritzker Prize-winning Norman Foster’s iconic structures, from the HSBC building in Hong Kong, to Berlin’s Reichstag and Apple headquarters in California, have defined cityscapes across the world. The Estate Makati will soon rise and take its place among this esteemed portfolio, vaulting Metro Manila’s skyline to the next level.
A unit at TEM is sure to be as coveted not just for the prestige of its design, but also its location, perfectly positioned on the stretch of Ayala Avenue between the Makati Central Business District and the exclusive enclaves of Forbes Park and Dasmariñas Village. Long regarded as the premier CBD of Metro Manila, the city of Makati is not one to rest on its laurels, as it continues to update and future-proof its infrastructure and facilities to keep up with global trends and demands. The Estate Makati is ideally located to take advantage of this urban evolution.
As befits its forward-looking architecture, The Estate Makati incorporates the latest sustainability and green building features. Utilizing double slab technology allows for versatility and flexibility in changing the layout and configuration of the rooms and areas within the unit. Amenities are thoughtfully curated to cater to a variety of lifestyle preferences, complemented by its proximity to a wealth of shopping, dining, health, leisure and cultural options.
As David concludes, “The overall prospects for real estate investment in the Philippines remain promising. Primary demand drivers of the residential market - good economic growth, urbanization, young demographic profile, continuous increase of remittances, and the rising income of the IT-BPM sector - remain strong and positive. The high-end luxury market is resilient and will remain active in the immediate future.”
The Estate Makati can be seen as the culmination of all these favorable market factors, offering a future-smart home and a future-proof investment, right in the heart of the Philippines’ leading commercial and lifestyle district.
“The overall prospects for real estate investment in the Philippines remain promising. Primary demand drivers remain strong and positive. The high-end luxury market is resilient and will remain active in the immediate future.
—David Leechiu, CEO of Leechiu Property Consultants, Inc.
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