The smart money behind luxury real estate investing
There was a time when “luxury real estate” felt like a far-off dream for many.
Today’s shifting, post-pandemic market, however, has turned that dream from purely aspirational into a more strategic play. While most Filipino investors are taught early on to diversify, there’s a strong case for choosing premium over quantity when it comes to property.
Let me explain.
Premium outperforms over time
A recent 2024 report by Santos Knight Frank noted that prime residential prices in Metro Manila rose by 21 percent year-on-year, making it the fastest-growing luxury residential market globally. This was driven not only by demand from high-net-worth Filipinos, but also by a resurgence in foreign buyers, expatriates and retirees seeking top-tier living spaces particularly in Makati, Bonifacio Global City (BGC), and Ortigas Center.
Globally, cities like Dubai (+15 percent), Singapore (+8 percent), and even New York (+4 percent) continue to validate the strength of luxury properties as resilient and appreciating assets.
One premium property vs three budget units
Let’s crunch the numbers in a sample scenario.
Suppose you have P25 million to invest. You can either buy one luxury two-bedroom unit in BGC or Rockwell Center, or buy three mid-market studio units in fringe cities or provincial hubs.
Sure, the mid-market option seems to earn more rent. But factor in the wear and tear, turnover costs, and tenant headaches, and suddenly, it’s not that rosy. Also, when it’s time to exit, premium properties are often cash-bought by high-net-worth individuals or institutional buyers who are less sensitive to market noise and volatility.
The danger of overdiversification
Diversification is a golden rule, especially in the capital market. But too much of it–especially in property–can overstretch your resources and dilute your returns.
Managing multiple low tier properties can eat into your time, energy, attention, bandwidth, cash flow, and sometimes even your peace of mind. Imagine juggling several tenants, dealing with maintenance requests from different buildings, and absorbing vacancy losses. You’re no longer investing–you’re operating a small leasing business.
At FirstMetroSec, we always say, “diversify wisely, not blindly” because we offer Filipinos a wide array of investment vehicles from stocks to bonds to peso- and dollar-denominated funds to real estate investment trusts (REITs).
There are multiple options because there are multiple personalities, sensitivities, and diverse investor backgrounds that we need to deal with.
But the property market is different. And I see it too often–investors buying five cheap units spread across locations, only to realize they’ve built a portfolio that’s hard to manage and worse, harder to grow.
Sometimes, a single solid asset beats a scattered bunch.
Not just for the ultra rich
What if I told you that you could own a piece of a luxury tower in London, Tokyo, or Sydney without the paperwork nightmare?
Thanks to REITs and global property funds accessible via FirstMetroSec’s FundsMart, Filipinos can now invest in luxury developments abroad with as little as P5,000. These funds are managed by professionals who have access to institutional-grade projects, allowing everyday investors to ride the same wave as global moguls–minus the landlord stress.
More than just bragging rights
Investing in luxury isn’t just about acquiring status. It’s also about owning assets that weather market downturns better; attract long-term, premium tenants; and hold timeless desirability and location value.
Not all properties are created equal. Sometimes, one crown jewel in your portfolio can shine brighter and deliver better than several scattered stones.
Whether you’re buying your first premium unit or looking to balance your existing portfolio, understanding value beyond price is what separates the seasoned investor from the rest.
At FirstMetroSec, we promote both access and alignment with your financial goals, your lifestyle preferences, and your peace of mind.
Let’s grow together, and maybe, let’s grow a little smarter, too.
