You are aware that the past few months have been rough on Philippine economic growth and the peso. The prices of goods have continually risen, and it is uncertain how they would have an actual pause. You probably also know what caused it: a possible recession in Russia. But you may not be aware of how Russian problems can lead to our own, especially since the two countries are separated by thousands of miles.
All countries were hit by the pandemic, hitting the same area where it hurts, in the means of transportation. Hindrances with transportation due to pandemics caused employees to have no choice but work from home or spend more than 100% of their usual commute expenses. The Philippines taking another hit due to the rising gas prices is surely felt by all.
What does this have to do with the Real Estate Industry?
Real estate is important for the economy. It provides the tangible assets of our economic system, providing jobs for thousands of people and housing for millions, as well as materials and space for all other industries to thrive.
The war has been negative for certain sectors of real estate, but positive for others. In particular, it has caused some sectors of real estate to be more expensive, but others to be cheaper. The effects are both positive and negative since the war increased wages in some places and decrease it in other places. it has decreased the prices of real estate in the Philippines, making it less profitable for investors. It has decreased the prices of real estate in the Philippines, making it less profitable for investors.
Profits made by the developers would be lower, thus people who invest in real estate now are also saving themselves from higher prices for new developments in the very near future. It has increased demand for real estate in the Philippines, creating a more favorable economic climate for buyers and sellers alike, so in a way, the economy heals itself still.
What is really happening to the Philippine economy?
World Bank East Asia and Pacific Chief Economist Aaditya Mattoo said the Philippine growth projection for 2022 was downgraded from a conservative of 5.8% given in October 2021 to 5.7% in 2022 due to the war in Russia and Ukraine, with the forewarning that it could fall to 4.9% if conditions worsen.
A simulation done by Mattoo was indicative of a 1% increase in poverty headcount or equivalent to 1 million Filipinos falling towards the poverty line when food prices increase by 10%. This hurts the national economy and hampers poverty reduction goals.
The World Bank said Philippine poverty incidence is estimated at 18.3% in 2021, and this is expected to decline to 16.2% this year as the economy recovers. The forecasted drop in poverty may be affected by the spike in inflation.
In the workplace
In a news release by BusinessWorld on April 11, 20222, the Alliance of Call Center Workers’ (ACW) Co-Convenor, Emman D. David suggested that a hybrid work arrangement be allowed so employees have the option of working on-site or at home. Although BPO employees are considering this due to the pandemic, the fact that the gas price hike is also happening cannot be shunned.
Trade Secretary Ramon M. Lopez said that increased frequency of onsite work is vital boost the country’s recovery from the pandemic. They are aware of the cost-efficiency brought by the Work-from-home setup, so it is going to happen as long as the law allows it.
In business and tourism
On another note, reduced economic growth in Russia will translate to weaker business travel activities, which will also dampen earning prospects of the tourism industry. Investors will think twice about traveling the world to look for sound investments, people will pause in considering travel as a leisure activity.
What can people do?
Due to inflation, pure savings would not be a wise idea for Filipinos and people around the world. Although funds have become tight, it’s wiser to invest while having liquid assets. Real Estate is not liquid, but it serves as a cushion and security for a family’s financial future.
Although real estate investing is highly recommended, there is a catch. Property must be carefully chosen. One must have knowledge about future development so and a city’s economic health in order to ensure that it is a sound investment strategy.
Vista Residences offers notable properties, projects, and developments located strategically from Luzon to Mindanao with access to commercial, retail, business districts, and tourist attractions. Making a smart choice and investing at the best price will definitely create another stream of income. Vista Residences has targeted major cities in Metro Manila, Baguio, Cagayan de Oro, and Cebu City, allowing more Filipinos to an opportunity to live close to top locations and landmarks.
Filipinos living abroad have access to virtual tours, making the purchase of condominiums as offshore investment that prepares them to go home for good and look forward to retirement days being abundant despite working less or just focusing on more time with loved ones at home. The leasing team can also help investors do the tedious work of renting out the property.
If purchasing a condo is not yet an option, being an Affiliate Marketer and helping Vista spread the word will earn a content creator a good amount of cash. Vista Residences is inviting content creators to educate more Filipinos into choosing real estate by becoming an affiliate. A person can write and share posts on social media. Once a property is sold due to the web traffic an affiliate has created, the website will process earnings. These allows one to partner with Vista in three different ways that can be done remotely.
There are thousands of ways to earn in the digital age, so people need to catch up, learn, and work smarter. Reach goals in an environment where creativity thrives, with excellence as the norm.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
