Now is the best time to invest in Bacolod City real estate. Bacolod City is experiencing its best market condition in 20 years. And looking at the economy of Bacolod, the future of the real estate industry is definitely looking brighter.
If you’ve been to Bacolod City these past five years, you’ve probably seen the changing landscape of the city. Real estate developments have been sprouting around the city from local and national developers. This is a clear indication of their confidence in the local economy of Bacolod.
What brought this upsurge in demand for real estate in Bacolod City and what will sustain it? Well, here are the top 5 reasons why you should invest in Bacolod City real estate in 2016.
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1. Bacolod Has a Growing IT-BPO Industry
Like the rest of the Philippines, it is the IT-BPO industry which is driving the local economy forward. Bacolod City was named as a Center of Excellence for Business Process Management (IT-BPM) in 2013 by ICTO-DOST and IBPAP joining the ranks with Metro Manila, Metro Cebu and Metro Clark. The rating was based on a scorecard looking at talent, infrastructure, cost and business environment.
Bacolod City is one of the top destinations for BPOs not only in the Philippines but also worldwide. In fact, Bacolod City has improved its ranking in the Tholons 2016 Top 100 Outsourcing Destinations worldwide from 86 to 85.
In 2005, the province started with only 1,000 BPO employees and increased to 11,000 by 2010. According to Atty. Jocelle Batapa-Sigue of the Bacolod-Negros Occidental Foundation for Information and Communications Technology (BNEFIT), in 2015 there were about 24,000 BPO employees in the province from 20 major companies. These existing companies are growing by 20% every year.
Let’s do a little Math. Let’s say these BPO employees earn an average of P12,000 per month. When we multiply that by the number of employees, that’s Php 288Million per month of money going around the local economy. Imagine these employees who have disposable income, they would be buying food, clothing, renting or buying their homes. And they are increasing every year!
It is not only Bacolod City that is being positioned for the BPO industry but the rest of Negros Occidental. The provincial government has constructed the Negros First CyberCentre (NFCC) which was inaugurated by no less than President Aquino in April 2015. The NFCC is a mixed-use PEZA accredited ICT and BPO hub which is hoped to create 6,000 direct jobs and 20,000 indirect jobs, and raise P90 million in annual rentals.
To support these targets, the provincial government is operating the Negros Occidental Language and Information Technology Center (NOLITC), one of the biggest ICT-BPO training providers in the province.
The provincial government is also planning to create a 6-year roadmap for ICT-BPO industry in order to encrourage investors to invest not only in Bacolod but in other cities and municipalities in Negros Occidental. According to Atty. Batapa-Sigue, the roadmap will serve as the blueprint and basis of the target number of local BPO employees in 2022.
With this kind of support from the local government and private sector, the ICT-BPO industry in Bacolod City and Negros Occidental will continue to grow in the coming years. This will continue to spur the real estate demand not only in Bacolod but also in key locations in Negros Occidental.
2. Bacolod is One of the Most Popular Philippine Cities for Home Buyers
According to global online property portal Lamudi, Bacolod topped the Philippine cities that experienced an increase in search traffic on its site. Lamudi said search traffic for Bacolod increased by 279 percent from the fourth quarter of 2014 to the first quarter of 2015.
The recent investments made by some of the Philippines’ top real estate companies have prompted the interest of home buyers to look for homes in Bacolod according to Lamudi.
The flourishing construction and the bidding war between Ayala Land and SM Prime Holdings has pushed the prices of land to increase to as high as 50 percent in the downtown areas, according to Lamudi. Thus, the property portal ranked Bacolod 5th on its list of the 8 cities to watch in 2016 considering the amount of upcoming projects in the pipeline aligned with affordability.
3. Bacolod Has a Diverse Property Sector
Bacolod City has a diverse property offerings ranging from socialized to high-end properties. Bacolod has both residential villages and mid-rise condominiums.
According to property portal MyProperty.ph, Bacolod City is one of the 6 cities in the Philippines where you can buy a relatively spacious house below Php 1Million. In Bacolod, a start-up family could buy a two-bedroom house for as low as P550,000.
On the other hand, Lamudi noted that based on 1,674 listings for Bacolod as of May 2015, the average house prices are at P7.1 million. Ayala Land Premier has an earlier foothold in the prime property sector in Negros Occidental with its Ayala North Point estate. More high-end properties are expected to rise in Bacolod with the entry of Megaworld which will develop two integrated townships in Bacolod namely, the 50-hectare Northill Gateway and the 34-hectare The Upper East
MyProperty.ph noted that Negros Occidental has a modern airport, good infrastructure, and Bacolod has also been declared as a Center of Excellence for IT-BPO industry and some of its prime areas host shopping malls and BPO centers. Negros Occidental also boasts of heritage homes owned by the sugar barons. These are factors which make Bacolod City and Negros Occidental attractive to home buyers.
4. Big Projects in Bacolod are in Pre-Selling Stages
The best time to buy a real estate property is at its pre-selling stage when it is at its lowest price. Most projects in Bacolod by some of the biggest property developers in the Philippines are currently in the development stages. It is the best time to own a piece of these prime properties in Bacolod which are expected to increase in price in different stages of development.
Ayala Land will invest Php 6Billion in its Capitol Central and construction is currently in full swing for its mall, residential condominiums and hotel. This mixed-use development project will cover 9 hectares, 4.04 hectares of which has been leased from the Negros Occidental provincial government. Construction of the Ayala Mall Capitol Central is expected to be completed by 2018 and Seda Hotel by 2017.
Megaworld will invest Php 35Billion in its two townships in Bacolod. Development in its will 50-hectare Northill Gateway is expected to start in March 2016 and the 34-hectare The Upper East is expected to follow. These townships will have upscale residental villages and condominiums, shopping malls, commercial centers and office spaces. Megaworld is the country’s biggest residential condominium developer and business process outsourcing office developer and landlord. Megaworld will be a big boost to the IT-BPO industry of Bacolod.
5.Bacolod will be the Business Hub of Negros Island Region
Negros Island Region was created by virtue of Executive Order No. 183 issued by President Benigno Aquino III on May 29, 2015. Negros Occidental is no longer part of Western Visayas and was joined with Negros Oriental so that the whole Negros Island will be a separate region. The Technical Working Group (TWG) has identified an area between Kabankalan City (Negros Occidental) and Mabinay City (Negros Oriental) to be the regional center. The creation of the new region is hoped to benefit the two provinces and hopefully close the economic gap between the two provinces.
By population, Negros Occidental has 2,907,859 while Negros Oriental has 1,286,666. In terms of revenue allotment, Negros Occidental receive a total of P11.07 billion in internal revenue allotment (IRA) funds in 2015, while Negros Oriental would get a total of P5.86 billion. In terms of income, Negros Occidental generated an income of P2.2 billion in 2013 while Negros Oriental earned P1.4 billion.
Bacolod City is classified as a first class city and the biggest city in Negros Island Region in terms of population and economy. Clearly, Bacolod will be the business hub of Negros Island Region.
Either you’re an investor looking for a real estate property to invest your money, or you’re looking for a home for your family, Bacolod City is a good choice. And the best time to invest in Bacolod City real estate is now!