Real estate growth in Visayas and Mindanao
The Philippine real estate sector is poised for significant growth this year, presenting opportunities to expand beyond the well-established hubs in Metro Manila.
Visayas and Mindanao are promising development frontiers that offer untapped potential for residential and commercial real estate investments. It’s important to note that investing in these regions also comes with certain risks and challenges.
However, the strategic development of these regions can alleviate the concentration of economic activities in Luzon, promoting balanced growth across the country.
Building the backbone
Infrastructure development is the key driver of real estate growth in Visayas and Mindanao. The establishment of robust transportation networks, including highways, railways, and airports, not only enhances connectivity but also makes these regions more accessible.
For instance, the Cebu-Cordova Link Expressway in Cebu and the Mindanao Railway Project are seen to spur local economies by facilitating smoother movement of goods and people, thus boosting the real estate market in these regions.
Tourism is the catalyst
Developers should focus on building projects near emerging infrastructure hubs to benefit from increased activity and accessibility. These hubs attract businesses such as manufacturers and investors, while raising property demand and value.
Tourism can be a game-changer in VisMin’s real estate sector. These islands boast some of the Philippines’ most stunning natural attractions, from the pristine beaches of Boracay and Siargao to the cultural heritage sites in Davao and Cebu. The projected surge in demand for hotels, resorts, and vacation homes presents a golden opportunity for investors and developers to reap substantial returns on their capital.
Investing in hospitality infrastructure, such as luxury resorts and eco-friendly accommodations, can tap into the growing market of domestic and international tourists. Developing integrated resort complexes offering residential, commercial, and recreational facilities can also create vibrant tourism hubs that benefit the local real estate market.
Enabling sustainable growth
One key strategy is offering tax incentives to developers who invest in these regions. These incentives can include tax breaks, which lower the overall development risk.
Additionally, subsidies can be provided to support the construction of essential infrastructure and facilities, further reducing the initial investment burden on developers.
Another vital aspect of government support is streamlining regulatory processes. The government plans to help developers navigate the complexities of building in new regions with new technologies, which will simplify and accelerate the approval process for real estate projects. This saves time and resources, and encourages more developers to consider investing.
Furthermore, the government’s commitment to foster real estate development through public-private partnerships is a significant boost. These partnerships ensure that development projects align with regional growth plans and contribute to long term economic growth, providing a secure and reliable environment for potential investors, developers, and the market.
The author (at www.ian-fulgar.com) is a leading architect with an impressive portfolio of local and international clients. His team elevates hotels and resorts, condominiums, residences, and commercial and mixed-use township development projects with innovative, cutting-edge design and business solutions that have garnered industry recognition, making him the go-to expert for clients seeking to transform their real estate ventures
