Why investing in real estate is a sound decision amid soaring inflation

Financial experts say investing in real estate is the best storage of wealth during economic downturns. (Artist’s illustration of DMCI Homes’ Fortis Residences development along Chino Roces Avenue, Makati City)

At 6.4% inflation rate as of July 2022, the Philippines may be experiencing the worst financial setback in four years. To put things into perspective, the rate was at 6.1% in June and 3.7% in July 2021. 

What is inflation and should you be concerned about it, you may ask. To put it simply, Forbes.com said inflation describes the gradual rise in prices and slow decline in purchasing power of your money over time.

The high inflation rate shouldn’t be a surprise to anyone who has been outside to buy, well, anything: from gasoline, to meat, to sugar, to food in general. 

As prices of commodities increase because of inflation, the value of your savings, on the other hand, declines over time.

Given this data, it is important to find ways to grow your money by spending on investments that fend off inflation. Real estate in the Philippines can be your best bet.

Where to invest?

Investorjunkie.com states that when it comes to investing, always look at the bigger picture, and long-term solution.

In their article, “Is real estate a good investment right now?” the author states, “A 5.5% 30-year fixed rate mortgage is still very low compared to historical average annual interest rates since 1975. While novice investors are looking at the short-term increases as a reason to not invest, savvy investors understand that real estate is a long-term investment and today’s rates are still historically low.” 

This is true, as well, in the Philippines, where we see hard-to-resist benefits of buying a home.

It is important, however, to push for investments that have sure value in the future.

Is real estate a good investment?

For, Mr. Tsubasa Shiina, a Japanese investor, the answer is a resounding “yes.”

Mr. Shiina had bought units at DMCI Homes’ projects, The Oriana and Infina Towers in Quezon City and Fairlane Residences in Pasig.

The Japanese investor said despite the pandemic he remains confident of buying properties especially because of one distinct advantage of real estate compared to other forms of investment, particularly against inflation.

“I think the best advantage of investing in real estate is it has strong foundations against inflation,” Mr. Shiina said in an interview as he pointed out that unlike traditional investment options, real estate investment can profit from inflation in terms of driving rents and property values higher in the long term.

Why DMCI Homes?

When investing, Mr. Shiina said it is important to consider rental income potential, price point, and construction design and quality when deciding on what property to invest in.

“DMCI Homes properties’ price point is always excellent compared to others. The building structure is also very different and unique from other developers. Sunlight and wind can easily enter the building that help reduce costs,” he said.

The aesthetics of all DMCI Homes properties are surely a good measure of its attractiveness to investors. The unique setting, which comes with large units unknown in other development projects, gardens that make you feel at home, world-class amenities, good security, to name a few, puts it on top of the list of real estate investors and even renters.

Not only that, DMCI Homes have a penchant for finding quiet spaces in the middle of bustling areas. This means that while all their properties feel like sanctuaries, these properties are also near malls, schools, hospitals, grocery stories, and the major transportation hubs in the city—the latter, especially, ensures that the value of their properties rise through the years. Plus, DMCI Homes has been known to maintain its properties well so that they are always in good condition even after decades of use. It's top tier real estate in the Philippines.

In conclusion, while it is good to save up for rainy—or rainier—days, it is also good to put your money where it will grow in just a few years.

DMCI Homes is the Philippines’ first Quadruple A real estate developer known for building quality resort-inspired communities in Mega Manila, Baguio, Boracay, and Davao City. The company now has over 60 properties in its portfolio since it was launched in 1999.

To learn more about DMCI Homes' pre-selling and ready for occupancy projects, units for lease, and special promos, call (632) 5324-8888. You can also visit DMCI Leasing Services to know more about opportunities in leasing and rent-to-own (Home Ready™) programsof DMCI Homes. News and other updates are also posted on the company's official website and social media accounts on Facebook, X, Instagram, and YouTube.