AFTER facing several challenges in the first half of 2024, the country’s real estate sector is expected to bounce back in the second half of the year.

In its recent Mid - year Report of the Real Estate Industry, Lobien Realty Group, Inc. ( LRG) CEO Sheila Lobien said they are bullish in the second half because of the country’s resilient economy and the positive movements in transaction volume year- on- year ( YOY) across the real estate industry.

Real estate provider Lobien Realty Group presented the 2024 mid-year property market outlook for the country in a media briefing held at World Plaza, Taguig, on July 18, 2024. The briefing covered updates on the country's overall economy, office market, residential, and industrial market.

The contribution of real estate to the economy is seen going back to pre-pandemic levels this year, according to Sheila Lobien, chief executive officer of Lobien Realty Group (LRG).

In a press briefing, Lobien said real estate chipped in P1.1 trillion to the economy in 2023, a 90-percent recovery rate from 2019 when it contributed P1.2  trillion.

THE Philippines' real estate industry is expected to return to its pre-pandemic levels due to increasing demand across various sectors, especially for office spaces, Lobien Realty said in its midyear outlook.

Lobien Realty Group Chief Executive Officer Sheila Lobien said despite the challenging environment at the start of 2024, the second half prospects are "very positive" as transaction volumes rise.

The vacancy rate stands at 18 percent while rents have declined by 12.3 percent year on year from P1,130 per square meter (sqm) to P990/sqm, the group's midyear report said.

The real estate industry had a slower-than-expected recovery in the first half of 2024. However, the prospects are favorable for a better performance for the rest of the year because of a surprisingly resilient economy. Another good year.

The McKinsey Report released on March 7 is a good reference point to assess whether the economy can provide a favorable 2024 to the industry. Using the metrics set forth by the said report, the Philippines may have achieved a soft landing, at the very least, and could yet have another good year in terms of economic growth.

Lobien Realty Group sees the real estate sector continuing its recovery trajectory in 2024.

For the Metro Manila office space segment, annual demand will reach 400,000 sqm while new supply will be at about 500,000 sqm, resulting in vacancy rates easing to less than 15 percent. Average rental rates, however, are seen staying in the P1,100-per-sqm level.