As an investor with a focus on high-growth real estate markets, I’ve always kept a close eye on Southeast Asia, particularly the Philippines.
What I see is that The Philippines offers a wide array of real estate investment opportunities:
· Metro Manila - remains the country’s business hub, offering strong returns in commercial and high-end residential properties.
· Cebu - with its booming IT and BPO industries, attracts both residential and commercial investors.
· Davao - known for its affordability and safety, is also on the rise.
· Boracay Island - uniquely positioned as the top contender for real estate investment in 2024, blending natural beauty with limited property supply and high demand.
Here is my researches about investment potential in tropical paradise Boracay island:
1. Boracay’s Resilience and Market Recovery
Boracay’s journey over the last few years has been fascinating. After the island’s environmental closure in 2018, Boracay has undergone a major transformation, emerging stronger and more sustainable, including new roads, couple of supermarkets, water guards and etc.
Since reopening, Boracay has seen a resurgence in tourist numbers.
Statistics to Watch:
Tourist Arrivals: Over 2.1 million in 2023, with projections to exceed 3 million by 2025.
Occupancy Rates: High occupancy rates for short-term rentals and vacation properties, exceeding 70% in 2023.
2. Scarcity Drives Value
Due to strict environmental regulations, land supply on Boracay is limited. This scarcity is driving up property values, making the island a prime location for long-term investment.
Average property prices have seen a 12% annual increase since 2020.
3. Growing Eco-Friendly Demand
Sustainability is now at the heart of Boracay’s appeal, both to tourists and investors. Properties that adhere to environmental standards are in high demand, as visitors and buyers alike are drawn to eco-friendly options. This trend aligns perfectly with the Philippine government’s push for sustainable tourism and development.
For investors it is a smart move - such properties command higher rental rates and are more likely to appreciate as the market continues to favor green developments. We use local materials and keep the island vibe in our projects – here you can check about our offers https://www.boracay.house/studiosforsaleinboracay
4. Year-Round Rental Income
While tourism remains Boracay’s backbone, the island is slowly diversifying its market appeal. With the rise of flexible work models post-pandemic, we’re seeing a new demographic of long-term renters who seek more than just a vacation. This presents opportunities for investors to offer rental properties that cater to this growing segment.
Key Trends:
Remote Work: Increasing demand for properties suitable for long-term stay digital nomads , who are choosing Boracay for lifestyle and connectivity.
As an investor, this shift opens doors to rental income beyond the peak tourism seasons, creating a more stable and year-round revenue stream.
5. Vacation Rental Market
For those interested in vacation rentals, it’s worth noting that Boracay has one of the highest returns on investment (ROI) for short-term rental properties in the Philippines. With the influx of tourists expected to rise in the coming years, now is an ideal time to secure properties that will benefit from this growing demand.
Vacation Rental ROI:
Average ROI: Investors can expect an annual ROI of 7-12%, depending on property location and management.
Nightly Rental Rates: $120 per night for mid-range properties.
In 2024, I’m placing my bets on Boracay . Its combination of limited real estate supply, high demand driven by both tourism and long-term rentals, and growing focus on sustainable development makes it a top contender for real estate investments in the Philippines.
If you’re looking to invest in the Philippines, now is the time to consider Boracay—before the window of opportunity narrows even further.
As an investor I would have partnered with boracay.house to explore ongoing projects.
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