The Philippine banking sector is poised for increased demand in real estate loans as the Monetary Board continues its easing cycle. Jason C. Valderrama, President and CEO of JCV & Associates, indicated that further interest rate cuts would likely stimulate loan applications.
As of December 2023, banks and trust entities' exposure to the property sector decreased slightly to 20.17% from 20.55% in the previous quarter. However, investments and loans to the property sector rose by 4.3% to P3.15 trillion.
Governor Eli M. Remolona, Jr. of Bangko Sentral ng Pilipinas (BSP) confirmed that the Monetary Board plans to continue reducing interest rates in increments of 25 basis points, though a pause may occur at the December meeting. Since August, the BSP has lowered rates by a total of 50 basis points, bringing the policy rate to 6%.
Looking ahead to 2025, JCVA is optimistic, projecting a revenue growth of 50-60%, with over 60% of projects stemming from existing clients. Key growth areas include logistics, healthcare, and tourism, with plans for an 11-hectare sorting center in Cavite and an eight-megawatt hyperscale data center in Quezon City.
Valderrama noted the increasing importance of digital solutions in construction, highlighting the use of Building Information Modeling and AI-powered platforms for real-time project monitoring. Compliance with green certifications, such as WELL and LEED, is also becoming essential for clients.