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How Does Tourism Influence Housing Affordability and Real Estate Value

28 June 2022
How does tourism influence housing affordability and real estate value

Our country's economy seems to be greatly influenced by tourism since the Philippines have some of the world's most attractive tourist sites, luring both international tourists and investment. As a consequence of the enormous numbers of tourists visiting these areas, it is wise to buy real estate properties that are quite close to these tourists' hot spots.

 

As a tropical nation with a rich history and culture, the Philippines has a lot to offer in terms of customs and traditions. Even more so, we have yet to uncover the stunning natural landscape that lies under the surface. Through these natural treasures, our country might benefit from tourism as a result of its ethereal landscapes.

 

Real estate is in high demand during travel seasons like the summer, therefore it's no secret that tourists sometimes reserve rooms in advance of their trip. As a consequence of the growing demand from visitors or tourists, numerous businesses-- including the housing rental markets-- are flourishing.

 

How does tourism affect real estate and housing market?

Even though the tourism and real estate businesses are poles apart, they are connected in some way. The word "tourism" is used to describe the act of vacationers stopping by a popular tourist destination for a few days or a few hours.

 

Some of you may wonder whether or not the value of real estate might be affected by tourism. The value of your real estate property is influenced by a number of factors, one of which is its location. If, for example, your house and lot is near the area of Boracay. Real estate properties situated in tourist destinations are more valuable than those in places where tourism is less prevalent. Condos and single-family houses near local tourist sites are in high demand, therefore this is the result of supply exceeding demand. The tourism demand for these assets will drive up the housing prices if entrepreneurs and others in the company see a chance to do so. A great deal of companies are also located close to the attractions on or around your property.

 

To give a background about the correlation between residential property values and economic growth, developments incorporating both aspects were launched in the 1990s, highlighting the link between tourists and real estate. For example, there are integrated complexes that incorporate entertainment components, such as theme parks and malls, that are created in tandem with residential components.

 

Known as mixed developments or integrated developments, these types of projects are still popular with the general population.

 

What tourism demand for?

Tourism has a direct effect on homes situated near popular tourist destinations, as you may imagine. Let's take a look on what are the different demands or developments that are involved if your real estate property is located near a popular destination in the Philippines:

 

Upgrades to the infrastructure are needed.

When a site is well-known as a tourist destination, the infrastructure and amenities available in the area will be regularly improved and expanded. The road or highway leading to the destination, public transit in the vicinity, hotels, restaurants, food and beverage outlets, retail malls, and entertainment centers are among the facilities that will be created on the site.

 

Property owners in this area should expect a boost in their home's value due to the abundance of services and amenities available to their renters and prospective purchasers in the neighborhood.

 

Attract foreigners to the area.

Tourist sites generally feature high-end facilities and services that make it easier for outsiders to get about. This is why long-term residents of our nation, better known as expats, exhibit interests in remaining in these areas since they feel more at home. Expatriates and tourists alike enjoy traveling and exploring our wonderful beaches and islands.

 

The fact that the expats are prepared to splurge on their rental or purchase of real estate leads to the rise in capital and rental prices and the seasonal tourism fluctuations-- not to mention the house prices in the area.

 

A preferred location for businesses

In the real estate market, tourists' hot areas tend to do well since a large number of individuals are aware of their existence due to their prominent placement in travel guides. Many luxury projects may be built in such areas, making it a highly sought-after destination for many people in the long run. Such locations' property values rise over time because of the high demand for homes in certain locations.

 

Nature-lovers will find the Philippines an ideal place to immerse themselves while on vacation and experience being transported to a tropical haven with over 7, 000 islands at your disposal. If you have a condo unit or a house and lot near the most popular tourist destinations in the Philippines, you may want to consider building into a tourist accommodation your real estate investment.

 

In addition to this, you can also be presented with a wide range of business options, and just decide whether you're interested in following up on these leads. If you live in the Philippines near a popular tourist destination, here are some of the potential enterprises that might spring up there, as well as some business concepts you might wish to explore:

 

Café

Are you a lover of both coffee and pastries? Whether or not you're a coffee drinker but you do like making cakes and cupcakes, it would be an excellent idea to open a coffee shop if your home is located near one of the most sough-after tourist attractions in the Philippines. Who knows, this might bring you luck for your business venture!

 

Coffee shops for travelers who need a break from driving in frigid regions like Baguio and Tagaytay are ideal, particularly if they're open during the off-season. Before embarking on a long, exhausting, yet rewarding journey, a cup of coffee would be a perfect boost for them. Coffee's strong flavor is well complemented by the soft and sugary sweets served at the café. Before heading to their destinations, this is great for those who need a quick rest break.

 

If you're planning to explore this business, then, of course, the atmosphere of your cafe will have a positive impact on clients who decide to stop by and see what you have to offer.

 

Creating a coffee shop that people will remember as a location where coffee and pastries taste like no other might be a better strategy. It could help you draw in more consumers. In order to attract more customers, you could also consider opening a pet-friendly cafe where customers may bring their dogs along.

 

Give pet lovers a designated area to rest since some clients are allergic to cats and dogs and don't want to be around the creatures. These days, people are more likely to seek out photogenic coffee shops to publish on their social media profiles since we have arrived in the current era. Good coffee and pastries, as well as a beautiful setting and a calm atmosphere, will make any cafe business a success.

 

Restaurants

Food is the most essential thing. Period. Who among us has the willpower not to give in to the allure of mouthwatering cuisines and dishes?

 

Restaurants near popular tourist attractions are in high demand since many people want to sample the specialties and dishes of many provinces and towns they visit. Our recommendation: If you're a talented chef who wants to start a restaurant, buy a condo or a house and a lot near the popular tourist destinations in the Philippines.

 

Just make sure that your menu is distinctive yet offers a wide range of options, and that all of the food offered is worth the price. In addition, local cuisine, which may be found in your neighborhood, is highly recommended. If they are willing to pay for a unique experience, people will be eager to try new things and eat different food in exchange for that experience.

 

Souvenir Shop

It's impossible to forget and not to bring home some mementos after a trip. Travelers would always carry a souvenir from the location they visited to commemorate their joyful journey. They buy a lot of these souvenirs to offer as gifts to family and friends.

 

In this scenario, imagine that you own a home that is situated in a prime location near popular tourist attractions. To make money and raise the worth of your real estate, you'll need to start a business. Real estate owners might benefit greatly from souvenir stores, particularly if the property is situated near popular tourist sites. In addition to the major attractions, the most frequented locations are those where visitors may purchase t-shirts, key chains, and other locally produced goods.

 

Make yours stand out from the crowd at one of the Philippines' numerous souvenir stores. Relate your offerings to the area's primary attractions. Make money by selling anything linked to the water or the beach if you live near a seaside town.

 

On the other hand, if you live near hills and mountains, consider selling nature-themed items. Key chains and T-shirts are great options, but don't be afraid to branch out into other forms of merchandise. The scope of the creative endeavor is vast.

 

You may even open a tattoo parlor or henna parlor, if you'd like. It's also OK to offer additional accessories like bracelets and anklets. If you've got the skill, why not use it to make some money via the arts?

 

On the positive side, tell your clients that the finest memento they can bring back to their families is their recollections of the area and the good times they had there.

 

Vacation homes

Short-term rentals are becoming more popular among backpackers and visitors since they are both economical and handy. The internet and other forms of communication have made it easier for travelers to reserve a short-term vacation home at a lower cost in these popular destinations, despite the fact that many well-known hotels and resorts are accessible.

 

Many real estate websites are available for landlords to market their properties online, such as Booking.com, Agoda.com, and others. In certain cases, the visitor may be able to pay for the rental right away, depending on the situation, and this is pretty common.

 

Getting your home investment in tourism destinations

It is also a good idea to buy a house or a unit close to tourist attractions. Why? Simply because it will bring in a lot of money over time. Let's imagine, for example, that you acquired a piece of real estate this year. Your asset's worth and housing price will rise during the next five to ten years since the value of the real estate is anticipated to rise. It's also important to consider where your business is situated, especially if it's near a popular tourist destination.

 

So if you are asking how tourist accommodation help in maintaining economic status of a country, it is because of the surge in the housing markets brought by the different developments and businesses around the area.

 

Looking for a place where tourism development is in place? Below are some of the provinces all over the country that shows great tourism economics and the available Lumina Homes communities in the area:

 

LUZON

Province of Bataan

  • Lumina Pilar – Brgy. Liyang, Pilar, Bataan
  • The Balanga Residences – Brgy. Cupang Proper, Balanga City, Bataan

Province of Zambales

  • Lumina Subic – Brgy. Pamatawan, Subic, Zambales

Province of Albay

  • Lumina Legazpi – Brgy. Maslog, Legazpi City, Albay

 

Province of Sorsogon

  • Lumina Sorsogon – Brgy. Macabog, Sorsogon City, Sorsogon

 

VISAYAS

Province of Cebu

  • Lumina Carcar – Brgy. Can-asujan, Carcar City, Cebu

Province of Negros Occidental

  • Lumina Bacolod – Brgy. Vista Alegre, Bacolod City, Negros Occidental
  • Lumina Bacolod East – Granada Alangilan Road, Bacolod, Negros Occidental
  • Lumina Silay – Brgy. Rizal, Silay City, Negros Occidental

 

MINDANAO

Province of Agusan del Norte

  • Lumina Butuan – Brgy. Taguibo, Butuan City, Agusan del Norte

Province of Bukidnon

  • Lumina Malaybalay – Brgy. Casisang, Malaybalay City, Bukidnon
  • Lumina Valencia – Brgy. Poblacion, Valencia City, Bukidnon

Province of Davao del Norte

  • Lumina Tagum – Brgy. Cuambogan, Tagum City, Davao del Norte

Province of Zamboanga del Sur

  • Lumina Pagadian – Brgy. Tiguma, Pagadian City, Zamboanga del Sur

 

Start your wise investment with us and take advantage of the rich culture, tradition, and tourism of these regions in the Philippines by getting your home investment and witnessing the significant impact of the tourism industry on your housing market value.

 

Be wise and turn them into a passive generating income by converting your vacation home into Airbnb rental housing. Hurry and make your home reservations now with Lumina Homes!

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