More and more people are discovering the joys of condo living. Unlike several years ago, most are now likely to invest in a high-rise apartment as opposed to an actual house. Aside from offering more flexibility and freedom, the trends suggest a high propensity for financial gain for those looking to invest. Worldwide demographics all support the rising popularity of this type of real estate and nowhere is this truer than in the Philippines.
Growing Philippine Economy
What exactly pushed the rise in condo dwelling? The answer lies in the Philippine economic situation itself. Over the past few years, the country has presented a dramatic 7.2% economic growth rate and 35% increase in net FDI, making it the #1 low cost destination in Asia. This remarkable improvement led to the rise of more commercially developed areas such as The Fort and Makati business districts. More and more of the country’s finances are being pushed into turning unused tracts of land into bustling metropolitan hubs.
The Fort, for example, was once allocated for military bases. Now, the area is slowly turning into a residential and commercial district populated by movers and shakers from all industries. It presents a new and desirable lifestyle that many aspire to achieve.
Conversely, inflation has pushed the price of land even higher and the emergence of high-rise condos presents an attractive and frugal opportunity to attain desirable living conditions. The time and cost it takes to plan, construct, and furnish a house is much greater than purchasing a pre-constructed unit.
Why Choose Condo Living
There are many distinct advantages to investing in an apartment. Property developers have come up with ways to maximize space and create desirable spaces to live and work in. Megaworld at The Fort, for example, specializes in townships that incorporate surrounding vital establishments. These facilities make life easier for those living in the area, creating a mini city within the city for those who don’t wish to travel far from home.
For families, they serve as second homes that reduce the distance between actual residences and working places. Most people have been known to acquire units in various areas that they can use at a moment’s notice.
The Investment Potential
The main draw, however, of condo living is the financial reward offered by leasing out units. Foreigners and balikbayans looking for suitable, cheap lodging for long-term stays find that condos are the most efficient. Hotels can be rather expensive and those that offer affordable rates are often located at a distance from centers of commerce. This makes it inconvenient for visitors to the country to conduct their business without having to make huge expenses on transport.
For condo owners, the returns on leasing out a unit are exponential. Most high-end condo units, when rented out, bring in a 6-8% profit yield. These rates are highly dependent on how the space is furnished. It pays for condo owners to actually mind the small details that will make their spaces more habitable for renters. Additionally, local building administration makes set-up and maintenance very easy, as opposed to having to find these resources on your own.
Condo living has not just become a habit of convenience but a status symbol to be coveted. The current line of high-rise residences offers interesting venues to work, play, and live in. Most aspire to have their own spaces right at the center of the most happening events and establishments. The trend has evolved beyond mere incidence, proving that developers, like Megaworld at The Fort, are on the forefront of something truly groundbreaking.
Why do you think is the trend of condo living rising in the Philippines? Share your insight in the comments!