Developer sees affordable housing as a need not a luxury
A home is a foundation for life. Yet, the rising cost of housing is making it increasingly difficult for many Filipinos to find affordable and comfortable places to live.
Real estate developer Roberto Alvarez Jr. has thus prioritized creating housing solutions that are both affordable and sustainable. The strategy is to sell condominium, and house and lot units at an average of P2 million or approximately P100,000 per sqm.
Noble Home Corp., of which he is CEO and president, is the umbrella company for various real estate development firms and a construction company that exclusively serves projects under Alvarez and his partners. The products range from residences to an industrial park development, hotel, and integrated resorts and residential complexes.
In good company
In a community surrounded by big-time players, his developments would be the more affordable product.
“We are not a direct competitor to them. Those who can’t afford the major developments will buy from us,” said Alvarez.
He cited Sucat Road, Parañaque, as an example. There, three mid-rise developments stand alongside the eight-story Monte Carlo Residences by one of his companies, GRH Land. While condos by big developers range from P3 million to P5 million. Monte Carlo Residences offers 21 sqm studio units with granite tile flooring and kitchen for less than P2 million. Monte Carlo East in Antipolo will be built in several phases.
“The bigger developers build 3,000 to 10,000 units for their community. We do 800,” he said.
In Nueva Ecija’s capital, Cabanatuan East by ServeQuest Properties offers homes—a two-story 50 sqm house on a 100 sqm lot, and a 75 sqm house on a 120 sqm lot—that are likewise estimated at P2 million.
Scaling up
He explained these companies don’t rake in hefty amounts, as profit margins are small. However, the business is stable, and earnings, though modest, accumulate over time.
“Our core business is selling to people who don’t have a home. It’s usually their first home. The high-end market will pay even if the project isn’t complete. Our market will only pay when you deliver. A rich man will have 10 houses. This person will only have one and live in it,” Alvarez explained.
“We’d rather be in the one catering to the average Filipino, the silent majority. People will buy because they need a house,” Alvarez said.
He admitted that their subdivisions, townhouses, and condominiums don’t have a property management group yet, as these communities are managed by residents’ associations due to low density.
“To pay for a management company, you need scale. We realize that we need to partner with property management firms because it’s not our core competence. We started like a sari-sari store and are on our way to become a supermarket,” Alvarez said.
An example of this scaling up is two still unnamed resort communities by ServeQuest Properties in Laiya, Batangas. Architect Felino Palafox Jr. will create the masterplans. A cliffside development will cater to the mass market while the bigger development, geared for the middle class, will feature a water park and a church.
Novel Residential Concepts is set to open the ground floor of its 110-room Novel Manila Hotel in January. It’s located within Ridgewood Towers Premier, a development by partner C2 Mansions Development, situated in front of McKinley Hill.
Building his reputation
Alvarez’s career began as a clerk at a real estate firm owned by Victor Chiong who tasked him with challenging, often overlooked duties. A close working relationship developed between the two, with Chiong mentoring Alvarez, who impressed his boss with his work ethic and problem-solving skills.
After Edsa Revolution, Alvarez joined Land and Housing Management Corp. where his innovative approach and leadership skills led to significant sales success.
The 1997 Asian Financial Crisis presented another challenge. Alvarez adapted his business model to offer condo management and car rental services. He assisted investors in liquidating unsold units by introducing flexible payment schemes like rent-to-own and deferred payments.
Transition to development
To gain more control over his projects and ensure timely commission payments, Alvarez transitioned to development, enabling him to oversee the entire process from conception to completion.
He started small—buying, renovating, and selling pre-owned houses and lots. He expanded into bulk acquisitions, lot retailing, and redeveloping old buildings into condominiums.
A key innovation, the “Patong-Bahay” involved brokering land deals and building standardized houses on them, offering affordable housing. Alvarez also partnered with Pag-IBIG to revitalize foreclosed properties.
Alvarez secured investments from previous partners who trusted his ability to deliver, fueling his growth. He offered competitive returns, often exceeding market rates, and established separate companies for each investment partnership to ensure transparency.
His ability to identify opportunities, coupled with his new approach and strong relationships, has propelled him to success in the real estate industry.
