Updated: June 21, 2022
Amid rising inflation and market volatility, real estate can offer a safe and sound investment alternative to build wealth.
Financial experts agree that real estate can be a strong inflation hedge because even as prices fluctuate, capital values have always appreciated in the long term. Investors can also benefit over the short term as rents are bound to rise with inflation rates, which means that one may expect a steady income stream from their property investments.
Registered financial planner Henry Ong, in his Inquirer column, pointed out that real estate “protects an investment from losing its value due to decline in purchasing power.”
“Increases in prices of goods and services have enabled real estate prices to keep pace with inflation and maintain its value over time, as property prices increase as a result of higher construction cost and other expenses,” he explained.
Citing the residential real estate price index from 2016 to 2021, Ong pointed out that “property prices have been rising by an average of 4.2 percent every year, faster than the 3.5-percent average rise per year of the consumer price index.”
A Forbes article published online this month also cited real estate as among the “best safe investments of 2022” as you are likely to “get consistent income, keeping you out of stock market ups and downs.”
However, tapping the opportunities that real estate can offer even in an inflationary environment entails a more prudent, cautious approach, especially when it comes to the luxury segment. It needs one to take a deep dive into a developer’s track record and financial performance to ensure that your investment is in safe hands.
Finding the Right Developer
Before investing in a luxury residential property, one should take a deep dive into a developer’s track record and financial performance to ensure that your investment is in safe hands.
It is also crucial to select a trustworthy and credible real estate brand that delivers on or before time, offers better facilities, and delivers luxury homes with a touch of modern lifestyle.
One such developer that can offer a safe haven for your investments is Brittany Corporation, the luxury residential arm of the country’s largest homebuilder Vista Land & Lifescapes, Inc. offers a beautiful and sophisticated collection of homes in the country’s finest locations.
Backed by the publicly listed Vista Land & Lifescapes, a company built by billionaire Manuel B. Villar Jr., it is in itself an indicator that your investment is safe. Vista Land is currently one of the country’s leading integrated property developers.
Despite the pandemic, it posted a 9 percent hike in its net income to P6 billion in the first nine months of 2021. The company’s gross margin also improved by 320 basis points due to the various operational efficiency measures undertaken during the period.
Vista Land’s financial muscle is aptly reflected across its brands. Brittany, for its part, has seen capital values for its communities steadily appreciating even during economic downturns.
Brittany’s luxury mid-rise condominiums, Alpine Villas at Crosswinds Tagaytay, have seen a 13 percent compounded annual growth rate (CAGR) over the last five years; 20 percent for its pre-selling lots Lausanne at Crosswinds Tagaytay; 24 percent for Georgia Club in Sta. Rosa, Laguna; and 13 percent for Portofino in Vista Alabang.
Luxury Home Sales Rebounding
With life slowly returning to “normal”, home buyers and investors are returning, and they’re looking for luxury properties.
They are now rethinking priorities and the money saved during lockdown has given those in the luxury market increased buying power as well as new priorities about the lifestyle they want to lead.
Sales of Brittany’s luxury properties surged this year, with a continuous increase in reservation sales in the first three months, a 49% year-on-year increase, which shows that the overall confidence in real estate as an asset class is pushing home buyers and investors further out on the risk spectrum, a pre-pandemic trend that is re-emerging.
Brittany also attributes this to households saving more money now than they did pre-pandemic and choosing real estate as a safer investment than the stock market.
Digital Sales Up by 24 Percent
The pandemic lockdown has pushed the company to do more sales activities online.
Brittany capitalized on the shifts in consumer’s home buying behavior by ramping up its digital marketing activities and utilizing more digital channels to promote its luxury residential developments, which brought in a 24% increase in reservation sales in the first quarter of 2022, equivalent to more than half of its total sales across its residential projects.
Lifestyle Over Price Consideration
More and more homebuyers consider luxury today as an experience. They want to surround themselves with beauty right away and live. They want to experience the value of the brand—be it the view, the location, or the finishes.
Luxury home buyers also want green homes and more open spaces. Beautifully landscaped lawns, lush gardens, and wide space yards have become almost standard.
As the premium standard in luxury residential development, Brittany creates masterpieces that provide unprecedented space, comfort, absolute attention to detail, and exclusive finishes that are perfect for those with a devotion to perfection and a taste for artful living.
In Brittany, expect nothing less than sophistication, quality, and elegance in the best lifestyle locations: Portofino in Alabang, La Posada in Sucat, Georgia Club and Promenade in Sta. Rosa, Laguna and Crosswinds in Tagaytay.
Besides offering luxurious enclaves that elevate lifestyles, Brittany, more importantly, exemplifies a truly sound, practical real estate investment—one that will no doubt allow you to tap opportunities and capture gains amid a challenging environment.