MANILA, Philippines — The government is optimistic that real estate services will recover as demand returns with further economic reopening in the country.
Finance Secretary Benjamin Diokno said real estate services, including buying, selling and renting of commercial and residential properties, among others, will rebound as the country moves toward the new normal.
This as work from home employees are starting to shift to a hybrid set-up, allowing the return of demand for spaces.
“Real estate has been a significant player in the Philippine economy but commercial spaces, home rentals, and sales took a downturn during the pandemic,” Diokno said.
“With the easing of mobility restrictions and higher economic activity, we call for the support of the private sector as we strive to exceed pre-pandemic macroeconomic targets,” he said.
Real estate has been contributing a significant amount to the overall economy amid a growing middle class segment, sustained remittances, and higher purchasing and investing power of Filipinos.
Unfortunately, the sector was also impacted by the pandemic as businesses closed and employers adopted a virtual work arrangement to deal with the pandemic.
Diokno is banking on the recovery of the tourism sector to boost the real estate industry’s growth as travel restrictions become less stringent.
He assured that the administration is committed to supporting the private sector’s growth by modernizing industries, and creating more job and investment opportunities.
“The government will harness the private sector’s potential through the public private partnership mechanism to implement impactful projects that are consistent with the country’s development goals,” Diokno said.
The Real Estate Investment Trust (REIT) Law is also expected to enhance the sector as it enables the public to participate by becoming shareholders in stable and lucrative real estate projects.
Diokno emphasized that REITs play an important role in deepening capital markets which in turn power property development in the Philippines.
As a public offering, REITs enhance economic activity through yields that will be reinvested into real estate and infrastructure projects.
The government is also pursuing the passage of the Real Property Valuation and Assessment Reform Bill that aims to adopt global standards in property valuation.
The bill provides for a transparent approach that will promote investor confidence in the property markets and help solve right-of-way issues in many infrastructure projects.