Why the COVID-19 crisis is a golden opportunity to invest in real estate

In every crisis, there is an opportunity. This time-honored adage rings particularly true for investors during the COVID-19 pandemic, where investors may be able to unearth real gems amidst the uncertainty. Real estate, for instance, continues to shine bright, offering the promise of capital appreciation to those who can see past the difficulties of the moment.

For those who find the wild fluctuations of financial markets disconcerting, real estate offers a more stable alternative. In fact, there is strong evidence that real estate trumps other investment instruments at this time, said property consultant David Leechiu.

Beyond this, the current situation has created an environment that make it even more compelling to invest in real estate at this time. Here are some reasons why the COVID-19 pandemic may be a golden opportunity to invest in real estate:

Guaranteed value appreciation. Throughout history, real estate values have always grown. History has shown that property values continued to appreciate despite economic setbacks, such as the global financial crisis and other disasters, and there is reason to believe that it will continue to grow in the post-COVID world. With the Philippines government continuing to pursue its infrastructure works, including roads and transportation projects, property values can be expected to grow over the medium and long term.

Low interest rates. As jittery consumers postpone purchases, banks are offering the lowest interest rates we have ever seen, making it far easier and more affordable to finance any investment in real estate.

Better payment plans. To attract investors who are still reluctant to make purchases, top developers are offering more appealing payment schemes, making real estate purchases very attractive and easy for prospective buyers.

More unit choices. With less buyers in the market, investors today have a better chance of getting highly coveted premium units, which will also yield higher investment returns. Competition for these units is usually very stiff, but with the present crisis, there is less competition for these choice units.

Real estate is a resilient industry. No crisis has stopped the real estate sector from growing in the past, and experts are confident that in due course, the sector will start picking up again. Mr. Leechiu believes that the current situation presents a unique opportunity to the Philippines, citing the government’s upcoming infrastructure projects that will spur economic development. These include the demand from the IT-BPM industry as multinationals cut costs and increase production; the liberalization of foreign ownership; the exodus of multinational companies from China, possibly going to the Philippines; and the high number of global fiscal stimulus packages that encourage consumption and investment.

Improved property management. With the Covid-19 pandemic driving demand for safe and secure communities, residential real estate developers are taking steps to enhance property management. There is a flight to quality, with investors preferring properties that are strategically located in secure neighborhoods that are close to commercial centers.

Unspent leisure budgets. With the lockdowns cancelling travel and vacation plans in the near and possibly medium term, unused budgets can be put to good use and invested in real estate instead. Real estate promises high investment returns which is a good use for unspent funds left lying around.

For those who can overcome their uncertainty at this time, The Velaris Residences makes a compelling investment choice. A landmark project of two strong developers, international property development leader Hongkong Land and Philippines real estate giant Robinsons Land, it promises investors the prospect of good investment yields and capital appreciation. The Velaris Residences is located in Bridgetown township along C5 road, offering easy access to shops, restaurants, and essential establishments. More importantly, it is located in a dynamic growth corridor where property values are bound to appreciate once the crisis is over and government projects come on stream.

Indeed, there is a silver lining in every crisis, and for real estate buyers, The Velaris Residences offers a once-in-a-lifetime investment opportunity to own a valuable piece of property that offers steady capital appreciation over time.