Written By: Jacquelyn Annete García Vadnais
Recently, there has been an interest in developing markets in Asia for real estate investors. The reason for this is due to affordable real estate opportunities, mixed with the economic growth that many countries are experiencing. One such country that has become appealing for real estate investment is the Philippines. Manila in particular has become an excellent place for real estate investors due to the improved infrastructure and consistent demand for housing. If you are considering investing in Manila, please consider the information below:
A Brief History of the Philippines
The Philippines is known for being the center of several rich cultural, and literary traditions. However, few records remain, as a great deal of the history of the Philippines was destroyed during the Spanish colonization of the islands in the 16th century. There were pre-existing cultures and languages that are still present today in the Philippines; however, they have been greatly impacted by the colonization of the Philippines. Even though the Spaniards did erase many cultural records, it is known that there were other societies that had contact with the Philippines prior to the arrival of the Spaniards, from China, Southeast Asia, and Muslim traders from India, and Arabia. After the arrival of the Spaniards in 1521, the islands were named Las Filipinas. This initiated the Spanish colonial period of the Philippines. This period remained until 1896, when the United States was granted the Philippines in the Treaty of Paris (1898). There was a period of struggle between the United States and the Filipinos that eventually led to independent governance, and an assembly of native Filipino leadership being elected in 1907. Modern Filipino society, and Manila specifically, is multicultural, reflecting a variety of rich indigineous cultures, as well as foreign influences. Manila has several mosques, many churches, and a synagogue. It also has a variety of unique dining, entertainment, and relaxation options, as well as opportunities to enjoy the arts, museums, and historical architecture.
Advantages of Investing in Manila
Manila has come a long way in recent years and is starting to be an attractive place for investors to consider. Below are some of the top reasons real estate investors should keep their eyes on real estate investment opportunities in Manila:
High Level of English
Even though the Philippines was controlled by the Spanish for many years, the period of American influence resulted in a high level of English proficiency. Even today, there is a high level of spoken English in the Philippines, which makes it easier to conduct business or get things done as an expat or tourist.
Rents Are Paid One Year in Advance in Manila
In Manila, landlords are treated to one year advance rent payments for their properties. This is an excellent advantage for real estate investors seeking cash flow, or to access a large lump sum of capital to invest in future properties.
Push for Urban Sprawl in Manila
One of the trends in Manila is that there are certain zones within the city that are more attractive for tenants or prospective buyers to live. For this reason, parts of Manila such as Makati, Ortigas, and Fort Bonifacio have rapidly increasing property values, as well as limited vacancy. Since there has been newly constructed infrastructure such as trains and bridges that reaches areas outside of these attractive districts, there has been a push to explore new development projects in Quezon Bay, Bay City, and North Epifanio de los Santos Avenue. This recent expansion has been popular. Projections indicate that existing development zones will continue to increase in price due to housing shortage. Furthermore, the newer zones are likely to attract a new wave of prospective tenants and buyers as Manila’s transit, and housing infrastructure grows.
Low Cost of Living
The Philippines is a very affordable place to live. Day-to-day food costs are very low along with transportation options. For example, living in Manila is 59.83% less expensive than New York City. In addition, residents are able to travel between the different islands and stay in affordable hotels for wonderful vacations. Money, in general, goes a lot further in the Philippines than many parts of the world, which makes it an appealing place for investors to acquire real estate.
Proximity to Other Large Economies in Asia
An important aspect to be aware of about the Philippines is it truly serves as a gateway to Asia from the West. Since the Philippines has roots with European and American influences along with regional ties to China, India, and the ASEAN nations, there are many opportunities there for commerce. Many companies have looked for an alternative to China for manufacturing with less of a language barrier along with virtual assistants that have a high level of English. The Philippines is able to serve as a place to conduct commerce with many Asian economies, but also Western economies as well.
High Rental Yields
There are great opportunities for rental yields in Manila. Rental yields in Manila have an annual average rate of 9%. This high yield is an excellent opportunity for investors to make good returns on their real estate investment.
Final Remarks
Manila is becoming an excellent place for prospective real estate investors to consider. There is a very high level of English in the Philippines, which makes it much easier to conduct business and real estate sales there. In addition, the Philippines serves as an excellent cultural bridge between the West and East, which will only attract more multinational companies there in the future that will have employees needing to rent apartments. Finally, there is a great deal of development occurring in Manila that is increasing the value of the existing exclusive luxury areas, and also fueling new projects that could become appealing to prospective tenants and buyers in the future. It is for these reasons that Manila will be a fascinating market to watch in the coming years.
Recently, there has been an interest in developing markets in Asia for real estate investors. The reason for this is due to affordable real estate opportunities, mixed with the economic growth that many countries are experiencing. One such country that has become appealing for real estate investment is the Philippines. Manila in particular has become an excellent place for real estate investors due to the improved infrastructure and consistent demand for housing. If you are considering investing in Manila, please consider the information below:
A Brief History of the Philippines
The Philippines is known for being the center of several rich cultural, and literary traditions. However, few records remain, as a great deal of the history of the Philippines was destroyed during the Spanish colonization of the islands in the 16th century. There were pre-existing cultures and languages that are still present today in the Philippines; however, they have been greatly impacted by the colonization of the Philippines. Even though the Spaniards did erase many cultural records, it is known that there were other societies that had contact with the Philippines prior to the arrival of the Spaniards, from China, Southeast Asia, and Muslim traders from India, and Arabia. After the arrival of the Spaniards in 1521, the islands were named Las Filipinas. This initiated the Spanish colonial period of the Philippines. This period remained until 1896, when the United States was granted the Philippines in the Treaty of Paris (1898). There was a period of struggle between the United States and the Filipinos that eventually led to independent governance, and an assembly of native Filipino leadership being elected in 1907. Modern Filipino society, and Manila specifically, is multicultural, reflecting a variety of rich indigineous cultures, as well as foreign influences. Manila has several mosques, many churches, and a synagogue. It also has a variety of unique dining, entertainment, and relaxation options, as well as opportunities to enjoy the arts, museums, and historical architecture.
Advantages of Investing in Manila
Manila has come a long way in recent years and is starting to be an attractive place for investors to consider. Below are some of the top reasons real estate investors should keep their eyes on real estate investment opportunities in Manila:
High Level of English
Even though the Philippines was controlled by the Spanish for many years, the period of American influence resulted in a high level of English proficiency. Even today, there is a high level of spoken English in the Philippines, which makes it easier to conduct business or get things done as an expat or tourist.
Rents Are Paid One Year in Advance in Manila
In Manila, landlords are treated to one year advance rent payments for their properties. This is an excellent advantage for real estate investors seeking cash flow, or to access a large lump sum of capital to invest in future properties.
Push for Urban Sprawl in Manila
One of the trends in Manila is that there are certain zones within the city that are more attractive for tenants or prospective buyers to live. For this reason, parts of Manila such as Makati, Ortigas, and Fort Bonifacio have rapidly increasing property values, as well as limited vacancy. Since there has been newly constructed infrastructure such as trains and bridges that reaches areas outside of these attractive districts, there has been a push to explore new development projects in Quezon Bay, Bay City, and North Epifanio de los Santos Avenue. This recent expansion has been popular. Projections indicate that existing development zones will continue to increase in price due to housing shortage. Furthermore, the newer zones are likely to attract a new wave of prospective tenants and buyers as Manila’s transit, and housing infrastructure grows.
Low Cost of Living
The Philippines is a very affordable place to live. Day-to-day food costs are very low along with transportation options. For example, living in Manila is 59.83% less expensive than New York City. In addition, residents are able to travel between the different islands and stay in affordable hotels for wonderful vacations. Money, in general, goes a lot further in the Philippines than many parts of the world, which makes it an appealing place for investors to acquire real estate.
Proximity to Other Large Economies in Asia
An important aspect to be aware of about the Philippines is it truly serves as a gateway to Asia from the West. Since the Philippines has roots with European and American influences along with regional ties to China, India, and the ASEAN nations, there are many opportunities there for commerce. Many companies have looked for an alternative to China for manufacturing with less of a language barrier along with virtual assistants that have a high level of English. The Philippines is able to serve as a place to conduct commerce with many Asian economies, but also Western economies as well.
High Rental Yields
There are great opportunities for rental yields in Manila. Rental yields in Manila have an annual average rate of 9%. This high yield is an excellent opportunity for investors to make good returns on their real estate investment.
Final Remarks
Manila is becoming an excellent place for prospective real estate investors to consider. There is a very high level of English in the Philippines, which makes it much easier to conduct business and real estate sales there. In addition, the Philippines serves as an excellent cultural bridge between the West and East, which will only attract more multinational companies there in the future that will have employees needing to rent apartments. Finally, there is a great deal of development occurring in Manila that is increasing the value of the existing exclusive luxury areas, and also fueling new projects that could become appealing to prospective tenants and buyers in the future. It is for these reasons that Manila will be a fascinating market to watch in the coming years.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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