Dorotea Tuzon

The real estate outlook in the Philippines often reflects local economic conditions and government policies, while the United States of America (USA) market is influenced by its vast size and diverse regional trends.

Both have distinct opportunities and challenges based on factors like demand, investment climate, regulations, and economic growth.

The USA generally has a more established and diverse market with various regional nuances, while the Philippines might have more growth potential in certain areas due to emerging markets and developments.

Philippines

• Offers emerging markets and growth potential for real-estate in major cities like Metro Manila and Cebu
• There is an increasing demand for residential properties due to urbanization and a growing middle class
• There are also huge opportunities in commercial real estate, particularly in office spaces and retail developments in key business districts.
• The government initiatives promoting foreign investment through incentives and ease of doing business. This includes having offering Special Resident Retiring Visa for those foreigners who wanted to make the Philippines there second home.
• It was also noted that the value of residential real estate market is projected to reach €4.89tn in 2023 and is expected to show an annual growth rate (CAGR 2023-2028) of 2.60%, resulting in a market volume of €5.56tn by 2028.

United States of America (USA)

• Offers varied opportunities across states and cities, each with its own market dynamics
• Stable and established markets with opportunities in residential properties (single-family homes, condos, apartments) and commercial real estate (office spaces, retail, industrial).
• It offers potential high return of investment in certain areas driven by economic growth, job markets, and infrastructure development.
• It offers accessible financing options and a mature real estate investment environment
• The USA residential real estate dominates the market with a projected market volume of US$88.91tn in 2023 and is expected to show an annual growth rate (CAGR 2023-2028) of 4.70%, resulting in a market volume of US$142.90tn by 2028.

CONCLUSION

Both countries offer investment potential, but the nature of opportunities and risk profiles can differ significantly based on market maturity, economic conditions, and local or regional factors.