PROFESSIONAL services and investment management firm Colliers said property market demand is likely to rise next year amid improving vaccination efforts, growing cash remittances, and expanding economic activities.
In a news release on Thursday, the company said it was “seeing green shoots of recovery in the property market and that demand is likely to start recovering in 2022 especially for office, residential, and retail segments.”
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno shared the same sentiments in his statement on Monday when he said “real estate and construction subsectors have started to recover in the second quarter amid the gradual easing of restrictions on mobility and economic activity after contracting throughout 2020 and the first quarter of 2021.”
As such, Mr. Diokno said the BSP “anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022.”
Colliers said demand for more office space is expected next year as the government ramps up its vaccination efforts against the coronavirus and eases pandemic restrictions, which will enable more workers to physically report to offices.
The recovery of major economies such as the US could also contribute to more demand from outsourcing firms, the company added.
Meanwhile, demand for residential spaces may also increase next year for the same reasons, and with overseas Filipino workers’ (OFWs) cash remittances continuous growth.
BSP data released on Monday showed that OFWs’ cash remittances rose for the eighth straight month in September by 5.2% to $2.74 billion from $2.60 billion in the same month last year, and by 4.9% month on month from $2.61 billion in August.
Colliers added that it expects retail space rentals and purchases to experience a slow growth in the fourth quarter of 2021, which will be sustained until 2022, with increased spending and eased pandemic restrictions during the Christmas season.
“Malls across Metro Manila are seeing an improvement in consumer traffic, with some mall operators saying that foot traffic is now about 50% to 80% of pre-pandemic levels,” the company said. — Bianca Angelica D. Anago