Investment Property in Manila

Investment Real Estate in Manila

Manila property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Manila.

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Search Map of Manila Investment Real Estate

Manila ( mə-NIH-lə, Spanish: [ma’nila]; Filipino: Maynila, pronounced [majˈnilaʔ]), officially the City of Manila (Filipino: Lungsod ng Maynila [luŋˈsod nɐŋ majˈnilaʔ]), is the capital of the Philippines, and its second most populous city. It is highly urbanized and as of 2019 was the world’s most densely populated city proper. It was the first chartered city in the country, designated as such by the Philippine Commission Act 183 of July 31, 1901. It became autonomous with the passage of Republic Act No. 409, “The Revised Charter of the City of Manila,” on June 18, 1949. Manila, along with Mexico City and Madrid, is considered the world’s original set of Global Cities due to Manila’s commercial networks were the first to extend across the Pacific Ocean and connect Asia with the Spanish Americas. When this was accomplished, it marked the first time in world history that an uninterrupted chain of trade routes circling the planet had been established. Manila is the second most natural-disaster-afflicted capital city in the world after Tokyo. At the same time, it is nevertheless among the most populous and fastest growing cities in Southeast Asia.

The Spanish city of Manila was founded on June 24, 1571, by Spanish conquistador Miguel López de Legazpi. This is regarded as the city’s official founding date; however, a Tagalog-fortified polity called Maynilà had already existed on the site, dating back as far as 1258. It is the name of this old polity from which the Spanish and English name Manila derives. After the defeat of the polity’s last indigenous Rajah, Sulayman III, in the Battle of Bangkusay, a fortified Spanish city called Intramuros was built directly on top of the site of old Maynilà. Manila was the seat of power for most of the country’s colonial rulers. Today, it is home to many historic sites, some of which were built during the 16th century. Many of the Philippines’ “firsts” are in Manila, including the first university (1590), light station (1642), lighthouse tower (1846), water system (1878), hotel (1889), electricity (1895), oceanarium (1913), stock exchange (1927), flyover (1930s), zoo (1959), pedestrian underpass (1960), science high school (1963), city-run university (1965), city-run hospital (1969), and rapid transit system (1984) – also considered to be the first rapid transit system in all of Southeast Asia).

The term “Manila” is commonly used to refer to the whole metropolitan area, the greater metropolitan area or the city proper. The officially defined metropolitan area, called Metro Manila, the “capital region” of the Philippines, also includes the much larger Quezon City and the Makati Central Business District. It is the most populous region in the country, one of the most populous urban areas in the world, and is one of the wealthiest regions in Southeast Asia. The city proper was home to 1,780,148 people in 2015, and is the historic core of a built-up area that extends well beyond its administrative limits. With 71,263 people per square kilometer, Manila is the most densely populated city proper in the world.

Manila is located on the eastern shore of Manila Bay. The Pasig River flows through the middle of the city, dividing it into the north and south sections. The city comprises 16 administrative districts: Binondo, Ermita, Intramuros, Malate, Paco, Pandacan, Port Area, Quiapo, Sampaloc, San Andres, San Miguel, San Nicolas, Santa Ana, Santa Cruz, Santa Mesa and Tondo. It is divided into six political districts for the purposes of its representation in the Congress of the Philippines and the election of city council members. In 2018, the Globalization and World Cities Research Network listed Manila as an “Alpha-” global city and ranked it seventh in economic performance globally and second regionally (behind Delhi, India in the latter case), while the Global Financial Centres Index ranks Manila 103rd in the world.

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The financial stability of Manila has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Manila

Renting out your Manila buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Manilaare – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Manila and be prepared to change your initial outlook.
Thoroughly research the Manila location with a special emphasis on fringe areas outside the main Manila metropolis that may be valued lower than their better-known neighbours. Rental yields of around 5% are still attainable in certain areas of Manila.
Ensure that your target investment property in Manila appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Manila properties yourself is an easy option, but are these savings justifiable when you run into Manila red tape? Physis Realty Manila office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Manila buy-to-rent sector.

With our expert guidance, investing in Manila provides the secure knowledge that your money is working harder than it would in a local Manila bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Manila, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Manila property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Manila

Flipping property in Manila

Flipping property is when we advise clients to buy a Manila property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Manila market has a time to react to the renovation.

The Flipping Strategy in Manila

Investment property flipping in Manila is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Manila real estate investments are sometimes referred to by professionals as ‘distressed’ Manila real estate.

What is distressed Manila property:

Manila property in need of renovation
Manila real estate with a change of puropose and use
Oversold Manila property
Bank repossessions in Manila

Put simply, long term investors in Manila purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Manila investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Manila property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Manila use a minimum profit value of 22% when looking at potential Manila projects. The reason for this is because there are lots that can go wrong in Manila property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Manila

For luxury property investors hoping to add a superb property in {AsainCity} to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Manila, Physis Realty caters particularly to high net-worth individuals and families in Asia. A luxury real estate investment in Manila should be entrusted to only the highest-quality agency.

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