Migration is a significant factor driving the demand for rental properties, particularly apartments, in the Philippines. As more and more Filipinos leave their homes in rural areas to work and study in urban areas, the need for affordable housing in these areas increases.
According to data from the Philippine Statistics Authority (PSA), the population of urban areas in the Philippines has been steadily increasing over the past decade. In 2010, approximately 57% of the population lived in urban areas. By 2020, that number had grown to 63%. This trend is expected to continue in the coming years as more and more people are drawn to the job opportunities and better living conditions that urban areas offer.
This migration from rural to urban areas is driven by various factors. One of the main drivers is the search for employment opportunities. Urban areas in the Philippines tend to have a higher concentration of job opportunities, particularly in the manufacturing, finance, and services industries. This makes them an attractive destination for people looking for work.
Another factor driving migration is access to education. Urban areas in the Philippines tend to have better educational facilities than rural areas, which makes them an attractive destination for families who want to give their children access to better education.
Combined with the Philippines’ growing population, these factors have led to a significant shortage of affordable housing in urban areas. According to data from the National Economic and Development Authority (NEDA), there is a backlog of around 7.7 million housing units in the Philippines, with most of this backlog concentrated in urban areas. This shortage of affordable housing creates a high demand for rental properties, particularly apartments. Many people who migrate to urban areas need help to afford a house. So they turn to rental properties as a more affordable option. This is particularly true for young professionals and students, who often have limited budgets and are looking for reasonable accommodation near their workplaces or schools.
The demand for rental properties like apartments is also driven by lifestyle preferences. Many people prefer to live in apartments due to their convenience and amenities. Flats are often located in the city’s heart, close to shopping centers, restaurants, and other amenities. They also usually come with additional amenities like swimming pools, gyms, and playgrounds, which can be a big draw for renters.
The government has also supported the housing and real estate sector. For example, the government has implemented policies to encourage the construction of more affordable housing. This creates a positive environment for the development and leasing of apartments. It has also introduced tax incentives for developers and landlords. This support is helping to create a more favorable environment for rental properties, particularly apartments.
Migration from rural to urban areas is a significant factor in driving the demand for rental properties, particularly apartments, in the Philippines. The shortage of affordable housing in urban areas, lifestyle preferences, government support, and availability of job opportunities and education make apartments an attractive option for many Filipinos looking for a place to live in the city. This trend is expected to continue in the coming years as more and more people are drawn to the opportunities and amenities that urban areas offer.
