ENGLISH
JAPANESE
Top 5 Considerations for International Property Investments Is the Philippines a good candidate for your international property investment? If it’s any indication, the post-pandemic economy is seeing improved investor confidence as major economies begin to reopen. However, as an investor it is worth taking the time to carefully scour your options to find the right property that will give you the best return on your investment.
Is buying an international property in the Philippines a good investment?
If you are considering including Philippine properties in your real estate portfolio, here are some five top considerations.
Performance of Foreign Direct Investments (FDIs)
According to Collier’s report, the Bangko Sentral ng Pilipinas (BSP) reported an increase in FDIs from $611 million (Php 31.8 billion) in February 2021 to $893 million (Php 46.4 billion) a year later in February 2022.
Furthermore, Collier’s growth reports projections by the BSP to reach $1.6 billion (Php 527 billion) in 2022 and $1.8 billion (Php 613.6 billion) by the year 2023.
The central bank attributes FDI growth to the “continued infusion of funds by non-resident direct investors to their local subsidiaries.” And according to Collier’s, the Philippines is proving to be one of the “fastest growing East Asian economies.” With this increase in FDIs, more money is expected to flow into the property sector.
Consumer confidence
Another key consideration for making that international property investment is Consumer confidence. In the National Capital Region (NCR) and a number of other provinces where pandemic alert levels have shifted to Level 1, businesses have recovered remarkably.
FDIs have also affected economic activity, which will lead to greater job creation. For those looking to buy in the Philippines, this signals greater consumer confidence and a robust economy worth putting one’s money into.
Opportunities for rental income
When exploring your opportunities for passive rental income, the Philippine real estate market offers a number of options. If you are a Filipino national living in another country, there is no limit to the type of property you can purchase: residential condo units; lots with improvements (this refers to the structure built on the property); office or commercial spaces; as well as residential or commercial lots.
On the other hand, foreign nationals can still invest within certain stipulations. In the case of condominium developments, foreign investors can only purchase from 40% of the total unit inventory. Foreign nationals may also own property under specific stipulations. For example, by way of hereditary succession, in accordance with the 1935 Constitution. Former Filipinos may also own urban land, provided it does not exceed 1,000 square meters.
Whichever property you choose to buy, be it a studio unit in the central business district or a residential lot in a progressive provincial city, there is a unique target market of prospective renters awaiting you.
Potential for value appreciation
When scouring the Philippine market for your ideal international property investment, consider the location. The National Capital Region, where key business districts are located are of course a prime choice for property. However, you may also want to explore provincial cities with highly-developed economic zones or a strong tourism industry.
The former includes Lipa City in Batangas. As a former agricultural area, Lipa has evolved into a highly-urbanized city thanks to the local business process outsourcing (BPO) industry. Angeles, Pampanga, on the other hand, which is noted for its key developments in the areas of agriculture, environment and heritage tourism, aquaculture, and the airport district. Pampanga is also a prime tourist spot having earned the moniker of “Culinary Capital of the Philippines,” owing to its iconic cuisine. Lipa and Angeles are both strategically located near business districts, commercial centers, schools, and even heritage sites, making it an ideal investment choice for condominium units for professionals and families.
Mactan, Cebu is another exceptional tourist spot. Located near Cebu City, the island is famous for its dive spots, picturesque beaches, and high-end resorts. This location is an ideal spot for investing in luxury serviced apartments or vacation homes for discerning tourists looking to get away from the city.
Developer reputation
Finally, when deciding on the right property for your investment, consider developer reputation. Rockwell Land is noted for its signature communities, each bearing the trademark Rockwell lifestyle. These developments distinguish themselves from other offerings thanks largely to Rockwell’s unique brand of exclusivity, security, and privacy. Wherever you invest in the Philippines, a Rockwell property is sure to deliver on historically high value appreciation, strategic location, and thoughtful design.
From the beachfront villas of Aruga Resort and Residences in Mactan to the vibrant community of The BenCab at Rockwell Center Nepo in Angeles; as well as the laid back but strategically located communities of The Arton and East Bay Residences, there’s a unique Rockwell property to fit your needs, preferences, choice location, and budget.
Contact Rockwell to learn more about your other investment opportunities.