Is buying a property in BGC a good investment?

Last updated on December 20, 2023

Yes, the analysis of Manila's property market is included in our pack

If you've appreciated the modern amenities and corporate atmosphere of BGC (Bonifacio Global City), you may have contemplated establishing a residence in this dynamic Manila district, enjoying its cosmopolitan vibe and urban conveniences.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for the Philippines, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in BGC?

Bonifacio Global City (BGC) in Manila stands out as a highly attractive location for property buyers, drawing in a diverse crowd with its unique blend of modern urban living and cultural richness.

When you're considering real estate in Manila, BGC often comes up as a top choice, and for good reasons.

Let's start by looking at what sets BGC apart from other real estate markets, not just in Manila but globally. BGC is a meticulously planned area, known for its wide, clean streets, well-organized layout, and a distinct absence of the chaotic traffic commonly found in other parts of Manila.

This kind of urban planning is a breath of fresh air, especially when compared to the more congested and less structured areas of the city.

Another key factor in BGC's popularity is its modern infrastructure. The area is equipped with state-of-the-art facilities, high-end shopping centers, and world-class restaurants, making it a hotspot for luxury living. It's a stark contrast to other parts of Manila, where such amenities might not be as readily available or of the same quality.

BGC started gaining traction as a prime real estate location in the early 2000s. Its development was a part of the government's efforts to modernize and internationalize Manila's urban landscape. Since then, it has consistently grown in popularity, becoming a symbol of modern living in the Philippines.

The question of whether BGC will maintain its hype is interesting. Given its continuous development, influx of multinational companies, and growing reputation as a lifestyle hub, it seems likely that BGC will remain a sought-after area for the foreseeable future.

The type of people attracted to BGC is diverse, but there's a clear trend. You'll find a mix of young professionals, expatriates, and affluent families drawn to the area for its cosmopolitan vibe, safety, and high standard of living. BGC's appeal to a global audience also adds to its diversity, making it a melting pot of cultures and backgrounds.

However, like any place, BGC has its drawbacks. The cost of living and property prices in BGC are significantly higher than in other parts of Manila. This price premium can be a barrier for some buyers, making it less accessible to a broader population.

Additionally, while its modernity and urban planning are strengths, they can also give BGC a somewhat sterile feel compared to more historical and culturally rich areas of Manila.

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Why is BGC a nice place to live?

Bonifacio Global City (BGC) offers a unique blend of lifestyle and culture, making it a desirable place to live, especially if you're looking for a blend of modernity and comfort.

When considering a move to Manila, understanding the nuances of living in BGC can be quite insightful.

The lifestyle in BGC is often described as upscale and dynamic. It's a place where contemporary art installations and lush green spaces coexist with high-rise buildings.

The area is known for its vibrant cultural scene, hosting various events and festivals that showcase both local and international talent. This cosmopolitan atmosphere is a significant draw for residents and visitors alike.

As for the expat community, BGC is a hub. The area's modern amenities, English-friendly environment, and the presence of multinational companies make it a preferred choice for expatriates. Living in BGC, you'll find a diverse community, with people from all over the world, which contributes to a globally inclusive culture.

Regarding the cost of living, it's important to note that BGC is one of the more expensive areas in Manila. From high-end apartments to upscale dining and shopping options, the cost of enjoying the lifestyle BGC offers can be significant. Many find the quality of life justifies the expense.

Safety is a priority in BGC. The area is known for its well-maintained public spaces and relatively low crime rates compared to other parts of Manila. This sense of safety is crucial for many when choosing a place to live, especially in a bustling city.

In terms of amenities and facilities, BGC doesn't disappoint. The area boasts some of the city's best schools, like the International School Manila and the British School Manila, catering to diverse educational needs.

For healthcare, St. Luke's Medical Center provides world-class medical services. The shopping experience in BGC is also top-notch, with malls like SM Aura and Bonifacio High Street offering a wide range of shopping and dining options.

The quality of infrastructure in BGC is another significant factor that enhances its livability. The roads are generally well-maintained and less congested compared to other parts of Manila. Utilities like electricity and water supply are reliable, and internet connectivity is among the best in the city, which is crucial in today's connected world.

Accessibility is one of BGC's strong points. It's well-connected to other parts of Manila via major thoroughfares like EDSA and C5. This makes commuting to and from business districts like Makati and Ortigas relatively straightforward.

For international connectivity, BGC is reasonably close to Ninoy Aquino International Airport, making travel in and out of the country convenient for residents.

Public transportation in BGC is also evolving. While the area is pedestrian-friendly, with dedicated walking paths and green spaces, there are also buses and a shuttle service that connect BGC to other parts of the city. The development of more comprehensive public transport options is ongoing, which will further enhance accessibility.

How much does it cost to buy real estate in BGC?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in the Philippines.

Buying property in Bonifacio Global City (BGC) can be quite an investment, considering its status as a premier residential and business hub.

The types of residential properties available in BGC vary, catering to a range of preferences and lifestyles.

In BGC, you'll primarily find high-rise apartments and condominiums. These range from studio units to more spacious multi-bedroom layouts. Luxurious penthouses and upscale condominiums are also part of the mix, catering to those seeking premium living spaces. While standalone houses and villas are less common in BGC, they do exist, albeit in more limited numbers.

The high demand in BGC is mainly for apartments and condominiums. This preference is due to BGC's urban planning, which emphasizes vertical living to maximize space in this highly urbanized area.

The convenience of condominium living, with amenities like gyms, pools, and security, is a significant draw for young professionals, expatriates, and small families.

Regarding property types, BGC offers a mix of new developments and resale properties. New developments are common, reflecting the area's ongoing growth and modernization. These often come with the latest in building technology and design, attracting buyers looking for contemporary living spaces.

The price range for properties in BGC can vary widely depending on the type, size, and location of the property. Prices per square meter in BGC could range from relatively affordable to quite steep, especially for luxury units or properties with premium features or locations.

It's important to keep in mind that these values can fluctuate based on market conditions and the ongoing development of the area.

Over recent years, property values in BGC have generally seen an upward trend. This increase is attributable to BGC's growing reputation as a major commercial and lifestyle center, continuous development, and overall demand for properties in prime urban locations.

Looking ahead, there are several developments and city planning changes in BGC that might affect property values. For instance, new commercial complexes, further improvements in infrastructure.

The addition of lifestyle amenities could all contribute to increasing property values. Specific upcoming projects or changes in city planning, if any, could have a significant impact on the real estate market.

Predictions for the real estate market in BGC in the coming years lean towards continued growth, albeit potentially at varying rates.

Factors that indicate a potential increase in value include continuous development, infrastructure improvements, the influx of multinational companies, and the overall allure of BGC as a top-tier urban residential area.

When considering buying property in BGC, it's crucial to think about these various factors. The potential for value appreciation is there, influenced by BGC's ongoing development and status as a desirable location in Manila.

However, market trends, future developments, and changes in urban planning should all be considered as part of your investment decision.

Where is the best area to buy a property in BGC?

When considering buying property in Bonifacio Global City (BGC), it's important to understand that different areas within BGC offer varied atmospheres, property types, and price ranges.

This diversity makes BGC appealing to a wide range of buyers, but it also means that choosing the 'best' area depends on your personal preferences and needs.

BGC is broadly divided into several areas, each with its unique character. For instance, the area around Bonifacio High Street and Serendra is known for its vibrant lifestyle, with a plethora of shopping, dining, and entertainment options.

This area tends to have a lively atmosphere, making it popular among younger professionals and families. The properties here are primarily high-end condominiums, and the prices reflect the area's popularity and the level of amenities available.

In contrast, areas like Burgos Circle offer a more laid-back vibe. This area is still centrally located but is a bit quieter compared to the bustling High Street area. The properties here are a mix of older and newer condominiums, and the prices can be somewhat more moderate, offering a balance between luxury and value.

An up-and-coming area within BGC to keep an eye on is the Uptown Bonifacio area. This part of BGC is undergoing rapid development, with new residential and commercial projects continually being added.

The properties here are on the newer side, and while prices are currently competitive, they are expected to rise as the area becomes more developed.

If you're looking for a property in BGC, areas like Bonifacio High Street, Serendra, and Uptown Bonifacio are worth exploring. Each offers a unique living experience – from the dynamic and trendy atmosphere of High Street to the more balanced and quieter environment of Burgos Circle, and the growing and modern feel of Uptown Bonifacio.

On the other hand, some areas in BGC may be less advisable for certain buyers. For example, areas closer to the peripheries of BGC might not offer the same level of convenience and accessibility as the more central locations.

Additionally, properties in these areas might not appreciate in value as quickly as those in the more developed parts of BGC.

Ultimately, the best area to buy a property in BGC depends on what you're looking for in a home and an investment. Whether it's a bustling urban atmosphere, a more relaxed environment, or potential for future growth, BGC has diverse options to suit different preferences.

It's always recommended to visit these areas, get a feel for the neighborhood, and consider how they align with your lifestyle and investment goals before making a decision.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for the Philippines.

Area	Atmosphere	Property Types	Price Trend
Bonifacio High Street & Serendra	Vibrant, Lively	High-end Condominiums	High
Burgos Circle	Laid-back, Quieter	Mix of Older and Newer Condominiums	Moderate
Uptown Bonifacio	Rapidly Developing, Modern	New Residential Projects	Competitive, Rising
Peripheral Areas of BGC	Less Convenient	Varied	Lower, Slower Appreciation

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Is there a strong rental demand in BGC?

Bonifacio Global City (BGC) has a robust rental market, driven by its status as a premier urban area in the Philippines.

Understanding the dynamics of the rental demand in BGC can be crucial if you're considering investing in rental property.

In terms of rental duration, BGC sees a mix of both short-term and long-term rental demands. However, the market leans more towards long-term rentals. This is due to the presence of multinational companies and embassies in the area, attracting expatriates and professionals who often seek longer-term accommodations.

The target demographic for rentals in BGC is quite specific. It largely includes expatriates, business executives, and high-income professionals, both local and foreign.

These individuals often look for properties that offer convenience, comfort, and a sense of luxury. The profiles of potential tenants typically include young professionals, small families, and expatriates working in the numerous multinational corporations based in BGC.

When it comes to the type of properties in demand for rentals, modern condominium units are highly sought after. Tenants usually prefer one to two-bedroom units, equipped with modern amenities and finishes.

Furnished units are particularly in demand, as they offer immediate liveability, especially for expatriates and professionals on the move.

Specific areas within BGC, such as around Bonifacio High Street, Serendra, and Uptown Bonifacio, are highly popular for rentals. These areas are preferred for their proximity to commercial hubs, shopping centers, and lifestyle amenities, making them convenient and desirable for tenants.

To reduce vacancy rates and attract tenants, properties with certain amenities are more advantageous. Amenities like swimming pools, fitness centers, 24-hour security, and proximity to public transportation significantly enhance a property's appeal. Properties with these features are often rented out faster and command higher rental prices.

Speaking of potential returns on investment, properties in BGC can offer attractive yields, especially given the high demand for rentals.

While specific numbers vary, rental yields in prime areas like BGC are generally competitive, making them an appealing option for investors.

In terms of future trends, properties that offer a blend of luxury, convenience, and modern amenities are likely to see increasing demand. Condominiums with smart home features, sustainable design elements, and those in locations with easy access to commercial and business districts are poised to offer better yields in the long run.

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Is it easy to buy a property as foreigner in BGC?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in the Philippines.

Buying property in Bonifacio Global City (BGC) in Manila as a foreigner involves navigating specific regulations and understanding the local real estate market; it is feasible, there are important aspects to consider.

Firstly, the Philippines has regulations that restrict foreign ownership of land. Foreigners cannot own land but can legally own condominium units or apartments in a building, provided that the total foreign ownership in a single condominium project does not exceed 40%.

This means that in BGC, a popular area for condominiums, foreign buyers can purchase units without owning the land.

The purchasing process in BGC typically starts with identifying a property that meets your requirements. As a foreigner, you would usually focus on condominium units.

After choosing a property, you negotiate the price and terms of sale, followed by the signing of a Reservation Agreement and payment of a reservation fee. This is succeeded by a down payment and signing a Contract to Sell or a Deed of Absolute Sale, leading to the transfer of the property title.

A primary risk associated with property investment in BGC for foreigners is the fluctuating real estate market, which can impact property values and rental yields.

Additionally, navigating the legalities and ensuring compliance with the 40% foreign ownership cap in condominium projects can be challenging.

Common pitfalls in buying property in the Philippines include overlooking due diligence. It's crucial to verify the developer's track record, ensure the property has a clean title, and confirm that all necessary permits and approvals are in place.

Unique to the Philippines, issues such as 'right of way' disputes or unrecognized property claims can arise, emphasizing the need for thorough due diligence.

Working with a local real estate agent or lawyer is highly recommended. They can provide valuable insights into the local market, assist in navigating the legal and administrative processes, and help in understanding the nuances of property ownership in the Philippines.

Common exit strategies for property investors in BGC include selling the property, often aiming for capital appreciation, or renting it out to generate rental income. Given BGC's popularity and growth, these strategies can be viable, but market conditions and future developments should always be considered.