Shifting demand: serious investors know that true property value lies in long-term, tourism-driven strategies

4 hours ago

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The Philippine tourism sector has firmly established its position as a vital economic pillar, achieving an all-time high tourism revenue of approximately P760 billion in 2024.

In a rapidly evolving market, there is an urgent need to shield the real estate industry from the pitfalls of short-term thinking. The real crisis lies not in a shortage of buyers, but in the rising expectations and shifting behaviors of investors, which increasingly clash with the general inventory of real estate offerings.

A market ripe for correction

The real estate market naturally moves through cycles of boom and bust. As it matures and evolves, success now hinges on a clear understanding of supply and demand dynamics. In Metro Manila, a closer look reveals that investors are increasingly drawn to real estate solutions that offer lasting value, anchored in strategic locations, lifestyle relevance, and sustained long-term potential. “By staying attuned to changing consumer behaviors and preferences, one can spot the gaps and turn unmet demands into real opportunities,” shares Anchor Land President Elizabeth Ventura.

“Aligning buyer needs with the right product is deeply influenced by location. High-growth districts are characterized by strong economic performance, cultural vibrancy, lifestyle appeal, and commercial energy. However, pairing these attributes with a product that meets the growing demand for smart and sustainable investment elevates the offering, making it not only more compelling, but also more resilient and future-ready,” adds Ventura.

The real estate goldmine lies in tourism

In 2024, Ninoy Aquino International Airport (NAIA) exceeded 50 million passengers, marking an 11 percent increase driven by heightened flight activity and strong domestic travel demand. This surge in air traffic aligns with broader industry gains; according to a related report from the Department of Tourism, the Philippines generated approximately P760 billion in tourism revenue from inbound travel expenditures, reinforcing the sector as a vital economic pillar.

Further supporting this growth, tourist behavior has shifted notably. Visitors now stay an average of 11 nights, up from 9 nights in 2019, and an impressive 70 percent of tourists are repeat visitors — clear indicators of the country’s rising appeal. With ongoing infrastructure improvements at NAIA and other regional airports, coupled with expanding commercial activity, the Philippines is well-positioned to sustain and strengthen its tourism rebound in the years ahead.

This upward trajectory in travel and infrastructure has not gone unnoticed. Savvy real estate investors with a sharp sense for emerging locations and evolving trends have long recognized the power of property as a vehicle for tourism. Rental-ready, operationally streamlined, and designed for passive returns, these investments consistently outperform underutilized projects, proving that strategic tourism-focused real estate presents game-changing opportunities.

Ventura expounds, “Tourism-focused investments are no longer a niche, but a strategic play for long-term value creation and vigorous yields, offering owners a chance to capitalize on the growing preference for stay-and-play environments.”

Real estate thrives on market foresight and mastery of evolving dynamics

The inherently cyclical real estate market requires a strategic, data-driven approach to effectively match buyers with the right property at the right time. Understanding the nuances of local economies, demographic trends, and evolving lifestyle preferences helps in making informed decisions and also positions properties to thrive throughout different market conditions.

“As tourism shapes the future of real estate, properties must not only reflect this trend but also be built to sustain it. A standout district embracing this future-forward mindset is Bay City Manila. With rising visitor traffic and enhanced accessibility, it is establishing itself as an essential destination for business, wellness, and leisure travel,” concludes Ventura.

Discover modern and smart real estate solutions in prime locations at www.anchorland.com.ph.

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