Property remains viable investment

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Property remains viable investment

Iris Gonzales (The Philippine Star) – November 3, 2020 – 12:00am

MANILA, Philippines — Property remains a viable investment despite the uncertainties brought about by the pandemic, according to Ayala Land Inc (ALI).

While its mall operations have been affected by the negative business environment, ALI maintains its optimistic outlook for the sector through long-term investment strategy and innovative business approach.

Investors can use it as an opportunity to establish a richer property portfolio, said ALI assistant vice president of Ayala Land Estates Cris Zuluaga.

Thus, the uncertainty should not deter those with capital, especially when attractive returns can be expected in the future.

“We have seen in past crises how the property sector has constantly been able to recover after a downturn, with values appreciating over time. Given our country’s stable economy, it remains one of the best options for investment today,” Zuluaga said.

The property sector posted consistently strong performance despite economic downturns.

Historically, ALI has proven the sustainability and viability of its projects as it saw tremendous growth in the land value of its developments in strategic growth centers.

Reflecting the recent growth of the industry, based on the land values reported by Colliers in September 2018 and December 2019, both Alabang and Makati grew by about 12 percent annually in the past 10 years.

Taking financial risks during a pandemic may seem unwise to some, but Zuluaga argues on taking advantage of the potential returns of an intelligent, calculated risk.

Ayala Land’s progressive estate Vermosa in Cavite, for instance, presents an investment opportunity for homebuyers, industries and businesses who are banking on reaping returns post pandemic.

Vermosa has reached an 82 percent growth on its commercial properties since its introduction in 2015, with a compounded annual growth rate of 14 percent.

Upon full build out, Vermosa is expected to house around 30,000 people across several of its residential developments and generate about 500,000 jobs.

In recent years, Vermosa has become the destination for modern active living and lifestyle pursuits south of Manila, and soon to rise as a progressive commercial center.

ALI is hitching a ride on the growth potential of the province of Cavite as it goes full-swing with the development. The estate is seen to gain improved access through several major infrastructure projects that establish Cavite as a booming growth center such as the Aguinaldo and Molino flyovers, Skyway extension and the Cavite-Laguna Expressway (CALAX).

“The historical performance of our properties in terms of land value, and the strategy and careful management that we continue to commit to our estates are assurances that we provide to homebuyers and investors who wish to secure strong future returns with Ayala Land,” Zuluaga said.