Year-long good weather in the Philippines — located as far east as Southeast Asia goes — drives its tourism industry and the archipelago is rich in pristine beaches, majestic mountains and thousands of tourist destinations. The continuous improvement of the country’s public transportation and infrastructure is making many more places accessible to all, and local airlines offer budget fares making travel available to everyone.
Philippines has shown robust economic growth and real estate prices directly rose. According to the Bangko Sentral ng Pilipinas, residential property prices surged 9.7% in the National Capital Region, while prices rose by 9.4% in areas outside Metro Manila. Investors like the Philippines as they can quickly see good returns. They can earn good income from rental properties without doing much work or they can flip or buy-and-sell.
Choosing the right spot is essential in the Philippines properties as most are in the city are on the rise and an increasing number of players in the market bring the prices at a competitive level. Metro Manila, especially the key areas or the business districts such as Makati, Ortigas, and Taguig, are now sprouting high-rise condominiums and apartments. Big city demand is driven by the concentration of businesses and available jobs in Metro Manila.
Buying prices for condominiums are from US$260 to US$390 per square foot (sq. ft.). Monthly residential rent varies on location. The highest is in CBDs.
According to research by the website Global Property Guide, Metro Manila’s gross rental yields is in steady growth ranging from 7.04% on the very smallest condominium units of 323 sq. ft. to 7.72% on 861 sq. ft. condominiums.
However, this does mean that non-Filipinos should rush into investing as these yields are before taxes. Income tax rates apply to non-residents and transaction taxes are high.
There are also plenty of affordable and high-quality properties outside the National Capital Region [Manila]. Tourists drive the demand for accommodation all over the country. Amazingly, a big piece of land costs the same as a small condominium unit in the city
It is important to note that non-Filipinos cannot own land, but can own Philippines properties like condominium units or apartments as long as ownership does not exceed 40 percent of the total property. Moreover, non-Filipinos can lease land up to 50 years that is renewable for another 25 years.