Real Estate and Remote Work: How the Pandemic is Shaping Philippine Cities

The pandemic completely changed how Filipinos live and work, and this has had a big impact on real estate in the Philippines. More people are working from home, which is changing what they want in a house and where they want to live, influencing property values, rental markets, and even the design of new developments.

Remote Work Revolution: A Shift in Priorities

Before the pandemic, many Filipinos lived in or near big cities like Metro Manila because that’s where the jobs were. But with remote work becoming more common, people started thinking, “Why pay high rent and deal with heavy traffic when I can work from anywhere?” This led to a shift in priorities. People started looking for bigger homes, places with outdoor space, and locations that are quieter and more affordable. We’re seeing proof that some people are leaving big cities. For example, according to a report by Statista, the number of home sales reached 667,000 in 2023. This has spurred growth in provinces and other areas outside major urban areas.

The Rise of the “Provincial Dream”

For many Filipinos, the idea of living in the province is now more appealing than ever. Provinces often offer a lower cost of living, a more relaxed lifestyle, and closer access to nature. Imagine waking up to fresh air, not city smog, and having a backyard where your kids can play. That’s the dream for many, and remote work is making it a reality. Places like Batangas, Cavite, Laguna, and Rizal (often called CALABARZON) are becoming popular choices because they’re still relatively close to Metro Manila but offer a more laid-back environment. Even further provinces like Cebu, Davao, and Iloilo are attracting people looking for a significant change of pace.

What People Want in a “Work-From-Home” House

The demands of a good home have changed. It’s not just about having a place to sleep; it’s now about having a functional workspace. Here are some features that are now top of mind for many potential buyers and renters:

• Dedicated Home Office: This is a must-have. No more working from the dining table or the couch. People want a separate room where they can focus and avoid distractions.
• Strong Internet Connection: Reliable internet is crucial for remote work. People are willing to pay extra for properties with fiber optic internet access or areas with strong mobile data coverage.
• Outdoor Space: A balcony, garden, or even a small patio can make a big difference, providing a place to relax and unwind after a long day of work.
• Bigger Living Spaces: With families spending more time at home, the need for bigger living spaces has increased. People want more room to move around, entertain guests (when it’s safe to do so), and pursue their hobbies.
• Good Ventilation and Natural Light: These are not just nice-to-haves; they’re essential for creating a healthy and productive work environment.
• Proximity to Essential Amenities: It’s great to live in a peaceful area, but access to groceries, pharmacies, and hospitals is still important. A balance between tranquility and convenience is key.

The Impact on Real Estate Prices

The shift to remote work has definitely affected real estate prices. In some areas of Metro Manila, we’ve seen a slight decrease or stagnation in prices, especially for smaller condominium units without outdoor space. On the other hand, demand and prices have gone up in provincial areas, particularly for houses and lots that offer larger living spaces and outdoor amenities. This increase isn’t only from people moving from Metro Manila; local demand for houses in the province has been increased due to the pandemic.

Developers Adapting to the New Normal

Real estate developers in the Philippines are taking notice of these changes and adjusting their strategies. They’re now focusing on building properties that cater to the needs of remote workers. This includes:

• Offering bigger units: Developers are building more houses and condominiums with larger floor areas to accommodate home offices and bigger families.

Follow us on LinkedIn!



• Incorporating “smart home” features: Technology is playing a bigger role in real estate. Developers are including features like smart lighting, smart security systems, and high-speed internet connectivity in their projects.
• Creating “mixed-use” communities: These communities combine residential, commercial, and recreational spaces, making it easier for residents to live, work, and play in the same area.
• Developing in suburban and provincial areas: Developers are expanding their projects outside of Metro Manila to meet the growing demand for housing in the provinces.

For example, one developer, Ayala Land, is focusing on creating “sustainable estates” that combine residential, commercial, and institutional components. These estates are designed to be walkable, bikeable, and connected to public transportation, making them ideal for people who want to live a more sustainable lifestyle. Another developer, SM Development Corporation (SMDC), is focusing on building condominium projects with resort-style amenities and co-working spaces, catering to young professionals and remote workers.

Renting vs. Buying in the Age of Remote Work

Deciding whether to rent or buy a property is a big decision, and the rise of remote work has added another layer of complexity. Here’s a quick rundown of the pros and cons of each option:

Renting:

• Pros: Flexibility, lower upfront costs, less responsibility for maintenance and repairs. You also get to test out new areas before making your purchase.
• Cons: No equity, limited ability to customize the property, rent payments don’t contribute to long-term wealth.

Buying:

• Pros: Building equity, ability to customize the property, potential for appreciation in value, sense of ownership and security.
• Cons: Higher upfront costs, responsibility for maintenance and repairs, less flexibility.

If you’re unsure about where you want to settle down long-term, renting might be a better option. However, if you’re confident about your location and want to build wealth over time, buying a property could be a smart move.

Tips for Finding the Perfect Work-From-Home Property

Finding the right property for remote work can be a challenge, but it doesn’t have to be overwhelming. Here are some tips to help you find the perfect place:

• Define your needs and priorities: What are your must-haves? How much space do you need? What amenities are important to you? Creating a list of your priorities will help you narrow down your options.

Follow us on LinkedIn!



• Research different locations: Explore different neighborhoods and provinces to find the best fit for your lifestyle and budget. Consider factors like cost of living, proximity to amenities, and internet connectivity.
• Work with a reputable real estate agent: A good agent can help you find properties that meet your needs, negotiate prices, and navigate the buying or renting process.
• Visit properties in person (or virtually): Photos and videos can be deceiving. It’s important to see the property firsthand to get a feel for the space and the surrounding area. Many agents offer virtual tours these days!
• Inspect the property carefully: Before signing any contracts, have the property inspected for any potential problems, such as structural issues, plumbing problems, or electrical issues.
• Test the internet connection: This is crucial for remote work. Make sure the property has reliable internet access before you commit to buying or renting.

The Future of Philippine Cities: A Hybrid Approach

It’s unlikely that everyone will work from home all the time. Many companies are adopting a hybrid approach, where employees work from home some days and in the office on others. This means that cities like Metro Manila will still be important economic hubs, but their role will evolve.

We might see the development of more satellite offices and co-working spaces in suburban and provincial areas, allowing people to work closer to home without having to commute to the city center every day. This could help reduce traffic congestion and improve the quality of life for many Filipinos. People who live closer to the city center can also work out of a coworking setting from time to time when they need a change of scenery or a better business environment than their home office.

The Government’s Role in Shaping the Future

The government also has a role to play in shaping the future of Philippine cities in the age of remote work. This includes:

• Investing in infrastructure: Upgrading transportation networks, improving internet connectivity, and building more affordable housing are all essential for supporting remote work and sustainable urban development.
• Promoting smart city initiatives: Implementing technologies like smart traffic management systems, smart energy grids, and smart waste management systems can help make cities more livable and efficient.
• Creating incentives for developers to build affordable housing: This can help address the housing shortage and make it easier for Filipinos from all income levels to find suitable housing.
• Encouraging the development of sustainable communities: Promoting mixed-use developments, green building practices, and walkable neighborhoods can help create more livable and environmentally friendly communities.

The Rise of Digital Nomads

The pandemic really accelerated the rise of digital nomads. These are people who work remotely and travel the world (or the Philippines!), taking their work with them. The Philippines, with its beautiful beaches, vibrant culture, and relatively low cost of living, is becoming an increasingly popular destination for digital nomads. Certain regions of the Philippines such as Siargao in Surigao Del Norte, Coron in Palawan, and Puerto Galera in Oriental Mindoro are popular places to live as these are far less dense metropolitan areas.

This influx of digital nomads can bring economic benefits to local communities, such as increased tourism revenue and new business opportunities. However, it also raises some challenges, such as the need for better internet infrastructure and the potential for increased strain on local resources.

Adapting to a New Lifestyle

Moving from the city to a province, or even just setting up a proper work-from-home space, requires some adjustments. It’s more than just finding a new house or a better internet plan. It’s about adopting a new lifestyle. Here are some considerations:

• Community: City life provides constant socialization at the office, during commutes, or on a stroll in the neighborhood. Socializing may be more difficult when moving to rural areas.
• Slower Pace: Adjusting to a slower pace of life can be challenging for some. Be patient and embrace the change. Find new hobbies, connect with the local community, and enjoy the peace and quiet.
• Accessibility to Resources: Things like specialized healthcare, specific grocery items, and certain types of entertainment might not be as easily accessible as they are in the city.
• Building a Routine: When working from home, it’s important to establish a routine to stay productive and avoid burnout. Set clear boundaries between work and personal life, schedule regular breaks, and create a dedicated workspace.

Investing in Real Estate Post-Pandemic

For investors, the changing real estate landscape presents both opportunities and risks. Here are some things to consider:

• Focus on properties that cater to remote workers: Look for properties with features like dedicated home offices, strong internet connectivity, and outdoor space.
• Consider investing in provincial areas: These areas are experiencing growth due to the rise of remote work.
• Diversify your portfolio: Don’t put all your eggs in one basket. Invest in different types of properties in different locations to spread your risk.
• Do your research: Before investing in any property, do your due diligence. Research the local market, assess the potential for appreciation, and get advice from a qualified real estate professional.

The End of the Traditional Office?

It’s unlikely that we’ll see the complete disappearance of the traditional office. While remote work has gained popularity, many companies still value the benefits of having employees working together in a shared space. However, the role of the office is changing. Instead of being a place where people spend all day, every day, it’s becoming more of a hub for collaboration, meetings, and social events. Businesses may look at having smaller offices as the demand has shifted. Coworking spaces will thrive even more as these serve as alternative for traditional offices.

Technology is Key

Technology is playing a crucial role in shaping the future of real estate in the Philippines. From virtual tours and online property listings to smart home devices and digital payment systems, technology is making it easier and more convenient for people to buy, sell, rent, and manage properties. Technology is not just making it easier for buyers and renters, but it’s being used for businesses in the Philippines as well, with most businesses making use of cloud based solutions, a result of adapting to the pandemic.

A Look at the Next 5-10 Years

Looking ahead, here are some predictions for the Philippine real estate market:

• Continued growth in provincial areas: As remote work becomes more entrenched, we’ll likely see continued growth in provincial areas, particularly those that offer a good balance of affordability, lifestyle, and connectivity.
• Increased demand for sustainable and eco-friendly properties: As Filipinos become more environmentally conscious, we’ll see increased demand for properties that are designed to be sustainable and energy-efficient.
• More flexible and adaptable living spaces: Homes of the future will need to be more flexible and adaptable to meet the changing needs of residents. This could include features like modular walls, convertible furniture, and smart home technology.
• Greater use of technology in real estate transactions: Technology will continue to streamline the real estate transaction process, making it faster, easier, and more transparent.

The Human Element

While technology, analytics, and market trends are important, it’s crucial not to forget the human element in real estate. Ultimately, a house is not just an investment; it’s a home. It’s where memories are made, families grow, and lives are lived. Even as the pandemic continues, many real estate developers such as Camella Homes emphasize the creation of communities and places to build memories in.

Real Estate Agents Adaptations

The role of the real estate agent has evolved too during this pandemic. They are now utilizing digital marketing to reach potential buyers and they utilize online meetings and property tours as well. More training is also conducted to equip real estate agents with the latest knowledge and skills.

FAQ Section

Q: Is it a good time to buy property in the Philippines right now?

A: It depends on your individual circumstances and goals. Interest rates are still relatively low, but property prices in some areas have increased. Research different locations, assess your financial situation, and get advice from a qualified real estate professional to make an informed decision.

Q: What are the best provinces to consider for remote work?

A: Some popular options include Batangas, Cavite, Laguna, Rizal, Cebu, Davao, and Iloilo. Consider factors like cost of living, internet connectivity, access to amenities, and lifestyle preferences when making your decision.

Q: How can I find a reliable real estate agent?

A: Ask for referrals from friends or family, read online reviews, and check the agent’s credentials and experience. Look for an agent who is knowledgeable about the local market, responsive to your needs, and has a good track record.

Q: What are the government’s plans for improving infrastructure in provincial areas?

A: The government is investing in various infrastructure projects, including roads, airports, and seaports, to improve connectivity and boost economic growth in provincial areas. Check updates via Official Gazette to view new details regarding infrastructure developments.

Q: How has the local real estate agent market changed?

Now, most real estate agents are more knowledgeable, skilled and tech-savvy. A vast amount of real estate agents are using digital platforms and social media to market properties and some are utilizing analytics to find clients.

References

• Statista, Home Sales in the Phillipines (2023)

Ready to find your perfect work-from-home haven in the Philippines? Whether you’re dreaming of a quiet life in the province or a modern condo with all the amenities, the time to act is now. Start your search today, research your options, connect with a real estate expert, and take the first step towards a brighter, more balanced future. Don’t just dream it, live it!