Real estate investing is no child’s game. You can’t just buy a property because it is near where you live or because the broker is a friend of yours.
Real estate investing requires a lot of research before you can arrive at an informed decision. There are a lot of factors that you need to consider, not just the price and the aesthetics of the property. Because in a city like Metro Manila, it takes more than a beautiful design to determine whether the property is a good investment.
Bonifacio Global City or BGC, a first-rate urbanized district straddling between Makati and Taguig, is one of the fastest-growing central business districts in Metro Manila. This booming financial district boasts of high-rise buildings, luxurious condos, commercial offices, posh restaurants, first-class facilities, and relaxing parks. With these residential and commercial developments popping left and right, BGC has become a honeypot to a lot of investors.
Why invest in BGC?
Here are some of the factors that make BGC worth your time and money:
- Best location.
When choosing an investment property, location is a huge factor. BGC is technically in the middle of everything. It’s neighbor, the Makati business district is just a few steps away while Ortigas is 10 minutes away. Taguig also boasts of a very lively business and commercial environment, featuring:
-16 commercial banks and 10 rural banks
-1,126 manufacturing firms
-243 restaurants
-2 shopping malls
-24 cottage industries
-7,776 registered commercial establishments
-53 subdivisions
Whatever people need or want to do, they don’t have to go far because BGC has everything. This is one of the things that make BGC attractive to international corporations and businesses. - Easily accessible.
BGC has become a major landmark in Metro Manila and there are several ways to get to this master-planned city. People can travel via EDSA, C5, Kalayaan Avenue, or Makati City. A faster route would be going through the McKinley Road from the West or the Villamor Airbase from the South. - 24-hour security
In a crazy city like Metro Manila, security is often a serious problem, even in gated communities or cities. Hence, BGC invested heavily in round-the-clock security for its dwellers. Aside from the dedicated security guards in every building and establishment along Bonifacio High Street, there are also roving guards patrolling the whole community on motorcycles. - Smart urban planning
Following the 60-40 rule, BGC’s city planning incorporates sustainable factors in its design. Aside from the high-rise buildings and establishments, you’ll also find parks and greenery within the area, allowing for efficient air circulation and minimizing pollution. Traffic rules are strictly implemented and utilities, such as cables, electric posts, phone lines, and water pipelines are all designed underground to maintain orderliness. - No blackouts
Power interruption is bad for business. In fact, it’s bad for everyone. People can’t work, appliances won’t run, and your life is put on hold until the power comes back. In BGC, power interruption is almost non-existent because all buildings have backup power. In case the power goes out, the backup power supply kicks in so you can continue with your life. - Higher rental yield
In 2017, the average rental yield of properties in Taguig is 7.07%, which is the 7th highest among the cities in Metro Manila. But over the years, the average rent for commercial spaces in Taguig, particularly the BGC area, has increased so much that they are now more expensive than those in Makati. By the end of 2018, the average rent in Taguig is P1,173 per square meter/month (14% increase year-on-year), which is significantly higher than the average rent in the whole Metro, which is P899 per sq.m./mo.A high rental yield means that you’ll be able to earn more from your investment compared to the same property located elsewhere. - Low tax rates.
Taguig has one of the lowest tax rates in Metro Manila. The Taguig Revenue Code contains provisions that implement lower local taxes on banks, insurance companies, hotels, telecom, pharmaceuticals, software companies, car dealers, and manufacturing firms. This move was designed to encourage more investors to come to Bonifacio Global City and generate more income. Banks in Taguig, for example, are charged with an 8% tax compared to Quezon City’s 25% and Makati City’s 15%.
Future Developments
Property experts predict that the highest concentration of wealth will be in Bonifacio Global City. This is because this posh community is still developing, catering to the upper-mid to the richest population in the city.
Aside from the existing residential structures, commercial spaces, and hotels, several projects are already in the pipeline to boost BGC’s property value. Several real estate developers are currently building various luxury condominium projects with high-quality architecture, world-class facilities, and top-rated amenities for the affluent locals, foreign investors, and offshore gaming companies.
Road infrastructures are also expected to be completed in a few years to ensure that BGC is well-connected. These projects include the Metro Manila Subway, which will be completed by 2025, the four-lane BGC-Ortigas Link that will be the main route for those going to or coming from Pasig, and the Makati-Taguig Skytrain.
Aside from these road projects, BGC will soon become the home of some of the most popular and luxurious hotels in the world, including the Grand Hyatt Residences, Shangri-La Hotel, Ascott Hotel, and another one from the Shimao Group.
Wrapping Up
All these developments point to one thing — BGC is in an upswing and there is no indication of it ever-changing in the near future. The latest numbers from Colliers International reveal that capital values in Bonifacio Global City have increased by an average of 6.7% in early 2019, and these prices are expected to continue to increase by an annual average of 6.3% until 2021.
Geographical advantages, rapid development, premium facilities, and first-class design all contribute to the growing appreciation value of properties in BGC. So if you’re looking for a safe, prime property investment in Manila, BGC in Taguig is probably the best place.
References:
https://propertyreport.ph/insights-on-the-property-appreciation-of-bgc/
https://www.philstar.com/metro/2006/02/05/320103/taguig-generates-p208-m-revenue-despite-low-tax-rate
https://www.taguig.gov.ph/doing-business/why-invest-in-taguig/
https://www.bworldonline.com/average-rents-in-taguig-now-higher-than-in-makati/
https://bgcmegaworld.com/why-invest-in-bonifacio-global-city/
https://lifestyle.abs-cbn.com/articles/8177/in-focus-investing-in-property-check-out-this-rising-residence-in-bgc
https://business.inquirer.net/111407/bgc-safest-place-to-invest-say-experts
https://www.zipmatch.com/blog/highest-rental-yield-metro-manila/