DOF highlights increasing demand for real estate services

Finance Secretary Benjamin Diokno expressed confidence that the demand for real estate services will continue to pick up now that the economy has reopened.

“Our economic prospects are promising. Real estate services, such as rentals, are expected to pick up now that employees are reporting back to the office,” said Secretary Diokno on Thursday, October 6, 2022 at the 62nd National Convention and Election of the Philippine Association of Real Estate Boards (PAREB).

Real estate has been a significant player in the Philippine economy but commercial spaces, home rentals, and sales took a downturn during the pandemic.

With the easing of mobility restrictions and higher economic activity, the government calls for the support of the private sector as it strives to exceed pre-pandemic macroeconomic targets.

Secretary Diokno noted that the revival of tourism in the country will also propel the real estate industry’s growth as travel restrictions become less stringent.

Secretary Diokno assured the real estate sector that the Marcos administration is fully committed to supporting the private sector’s growth by modernizing industries, creating more job and investment opportunities, and improving overall quality of life.

He said that the government has been doing a series of Philippine Economic Briefings to attract investors.

He added that the government will harness the private sector’s potential through the Public-Private Partnership (PPP) mechanism to implement impactful projects that are consistent with the country’s development goals.

“This administration is more than ready to implement game-changing reforms to cultivate a favorable environment for potential investors,” said Secretary Diokno.

Secretary Diokno cited the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and economic liberalization measures such as Public Service Act, Retail Trade Liberalization Act, and Foreign Investments Act as game-changing reforms that will provide an ideal investment climate for foreign investors to bring in their businesses to the country.

The Secretary further noted that the Real Estate Investment Trust (REIT) Law has enhanced the country’s real estate sector.

“The REIT is a powerful financial tool that enables the public to participate by becoming shareholders in stable and lucrative real estate projects. REITs play an important role in deepening our capital markets which will in turn power property development in the Philippines,” Secretary Diokno explained.

As a public offering, the REIT enhances economic activity through yields that will be reinvested into real estate and infrastructure projects.

Secretary Diokno added that the government intends to pursue remaining reforms such as the Real Property Valuation and Assessment Reform Bill.

He said that the bill aims to adopt global standards in property valuation. The bill provides for a transparent approach that will promote investor confidence in the property markets and help solve right-of-way issues in many infrastructure projects.