GDP Growth reached 6.3% in the 2Q of 2024

In the second quarter of 2024, the Philippines' GDP growth rate reached 6.3%. This represents a significant increase compared to the 4.3% growth rate in the same period of the previous year, positioning the country as one of the top-performing major emerging economies in Asia. The primary driver of this high growth rate was public infrastructure investment. The government's "Build Better More" program, aimed at accelerating construction and rehabilitation projects, resulted in a 21.8% increase in public construction.

This is highly beneficial for real estate investment in the Philippines for the following reasons:

Expansion of Infrastructure Investment

The government's "Build Better More" program has accelerated infrastructure investments, including transportation networks, public facilities, and energy supply systems. This has improved access to both urban and rural areas, which is likely to increase demand for real estate. Particularly in regions where development is advancing, property prices are expected to rise, making early investments advantageous.

Increased Demand Driven by Economic Growth

As the Philippine economy continues to grow, the middle class is expected to expand, along with an increase in employment opportunities. This will drive demand for residential, commercial, and office spaces, supporting long-term growth in the real estate market.

Stable Government Economic Policy

The government's infrastructure development through the "Build Better More" program demonstrates a consistent effort to strengthen the economic foundation. This policy stability provides reassurance to investors, making the Philippines an attractive destination for foreign investment.

Efforts to Curb Inflation

At the same time, the government is working on measures to counter inflation, which has been restraining household consumption. If consumer spending rebounds, it could positively impact the real estate market as well.

The Philippines' GDP growth rate in the second quarter of 2024, supported by infrastructure investments, creates a favorable environment for real estate investment.