Global influence and local impact: How foreign collaborations shape real estate growth
The Philippine real estate market has seen significant transformations in recent years, largely driven by strategic partnerships with foreign firms.
A standout example is the joint venture between Federal Land and Japan’s Nomura Real Estate Development, which formed Federal Land NRE Global Inc. (FNG), a collaboration that is redefining the local real estate landscape. These partnerships, although global in scope, are yielding tangible local benefits, creating opportunities for both developers and investors.
Collaboration beyond branding
It’s easy to assume that these international partnerships are primarily about brand alignment, but the reality is far more profound.
Foreign collaborations bring with them expertise in design, construction, and sustainability that often exceed local standards, elevating the quality of developments in the Philippines.
In the case of FNG, Federal Land’s deep understanding of the local market is complemented by Nomura’s world-class approach to Zen, urban planning and construction. The result is not just high quality developments, but spaces that are resilient, sustainable, and attuned to the needs of modern living.
According to a report by Jones Lang LaSalle (JLL), developments backed by foreign expertise show a 15 to 20 percent higher value retention over time, underscoring the appeal of these projects to investors. As demand for globally influenced properties grows, so too does the potential for long term investment returns.
Shaping lifestyles not just structures
Besides structural improvements, foreign collaborations also bring innovative lifestyle concepts.
Nomura’s influence on FNG projects, for example, goes beyond aesthetics. With a focus on ergonomic design, energy efficiency, and integrated technology, these developments offer a lifestyle that balances comfort with sustainability.
A recent PropertyGuru report highlights that 68 percent of Filipino buyers favor properties developed through international partnerships, citing superior build quality and long term sustainability as key factors. This increased demand for globally inspired projects is not only a boon for developers but also presents lucrative opportunities for investors.
Global standards, local excellence
One of the most significant advantages foreign collaborations bring is adherence to international standards, which are far more superior versus local building codes. This ensures premium construction quality, fewer maintenance issues, and higher buyer confidence.
A study by Knight Frank reveals that developments with foreign partners experience 80 percent higher demand during pre-selling stages compared to purely local projects. This increased interest, particularly among middle- to high-income buyers, translates to a premium for these developments.
Sustained value through innovation
Foreign-backed projects are built with long term value in mind.
FNG’s developments, for instance, integrate earthquake-resistant structures, energy-efficient systems, and environmentally sustainable features that ensure these properties will continue to appreciate over time. Colliers Philippines notes that mixed-use developments with foreign involvement appreciate 10 to 12 percent annually, far exceeding the performance of traditional builds.
Investing beyond borders
For investors looking to benefit from these trends, real estate investment trusts (REIT) and feeder funds, together with a wide array of global funds, provide a more accessible alternative to direct property ownership while allowing sophisticated investors to diversify beyond the Philippines.
Through platforms like FirstMetroSec’s FundsMart, investors can further expand their portfolios by tapping into high growth international markets while minimizing the complexities of managing physical assets. Whether through Asia Pacific or global REIT funds, FundsMart offers an avenue to participate in this dynamic sector.
What’s good about this is that whether you are here or abroad, you can actually start investing in a wide array of investment options simply by downloading the ‘FirstMetroSec GO’ Mobile app.
This multi-awarded app not only helps you jumpstart your investing journey with a fully-online and completely-paperless account opening process, but also helps you access stocks, bonds, ETF, REITs and both local and global funds all in one account!
Embracing global opportunities
The rise of foreign collaborations in the Philippine real estate market presents a compelling case for investors seeking long term growth.
As global partnerships continue to drive innovation and elevate quality, both developers and investors stand to benefit. By leveraging investment platforms like FirstMetroSec’s FundsMart, investors can access a range of global and local opportunities, ensuring a well-rounded, forward-looking portfolio.
As real estate moves toward a more globalized model, the smart investor will recognize the value of these collaborations—not just in terms of quality and innovation, but as a gateway to future-ready investments.
