New landowners, developers, and investors are urged to adopt auxiliary business or services to keep up with the changing real estate landscape with a particular focus on warehousing as an emerging growth area.
Citing figures from the Board of Investments, leading real estate advisory firm Santos KnightFrank noted that revenues of the transportation and storage industry jumped 626 percent to P129.6 billion in 2018 from P17.8 billion in 2017.
Santos director for investment and capital markets Kash Salvador said despite the rise in land prices, rents remained essentially stagnant and that setting rents beyond the threshold would affect the profitability of the occupier’s business.
“If you try to buy land today and apply the current lease rates, it will take you about 18 years to see profitability. Those who have bought their lands when prices still down had a good chance of surviving. More warehouses are now needed outside Manila, including Visayas and Mindanao, to connect suppliers with customers,” he said in a briefing Monday.