The higher cost of land will lead to higher philippines number list sales prices for apartments, which will force some developers to cut margins to maintain the interest of buyers.
The difficulty of finding well-located plots of land is a challenge for the real estate market. Investors are forced to look for lower-quality plots of land, for example in small towns or areas with buildings that are due to be demolished or redeveloped. Market analysis therefore provides an opportunity to identify new real estate opportunities. In particular, due to the low percentage of solvency, potential clients are looking for more favourable prices. It is the cheaper plots of land located in the outskirts that allow investments to be made at cost price.
Rising costs for finishing work
In recent years, the real estate market has grown considerably, so the increase in the price of finishing work must be sought in the face of increased demand and also as a result of pressure from developers eager to deliver their investments on time. Inflation should not be forgotten either. This translates into increases in the cost of energy, fuel, building materials and interest rates. In addition, it makes budgeting difficult, so finishing companies have to approach it very carefully in order not to expose themselves to losses.
The increase in subcontractors' contributions is also linked to changes in the labour market. In 2023, contributions to retirement and disability insurance and the minimum wage have been increased - by up to twofold. Employees themselves also expect even higher wages to offset the negative effects of the rising cost of living.