getyourguide.com | From Manila: Panoramic Tagaytay Ridge Tour | Image source: https://www.getyourguide.com/manila-l235/full-day-panoramic-tagaytay-ridge-tour-t4173/
Cavite has always been a good investment location but the land appreciation value has gone up significantly in the last few years. With its proximity to Manila, infrastructure growth and economic developments, Cavite is one of the best places to invest in the Philippines. But what makes Cavite a better investment now compared to other locations?
What is Land Appreciation?
Land appreciation is the increase in value of a land over time. As demand for land increases—due to economic growth, population growth and infrastructure developments—the price of land goes up. This increase in value can be very beneficial to real estate investors looking for long term returns. This increase in value can lead to significant annual returns for real estate investors.
In real estate, land appreciation is one of the key factors that affect property value and investors monitor this to make smart investment decisions.
Cavite Real Estate Situation
Cavite is just south of Manila and is growing fast in terms of residential, commercial and industrial developments. It’s already home to many gated communities and urban developments that cater to different market segments.
Some of the areas that are growing are Bacoor, Dasmariñas, Tagaytay and Imus. These areas are benefiting from new roads, transport systems and commercial hubs that are further increasing their property value appreciation. These developments have also led to high levels of customer satisfaction among residents.
Factors Affecting Land Appreciation in Cavite
Several factors are driving the increase in land value in Cavite making it an investment hotspot:
These factors contribute to higher growth rates in property values.
Infrastructure Development
CALAX, LRT-1 extension and CAVITEX are making Cavite more connected to Manila, increasing demand for residential and commercial properties.
These infrastructure projects significantly enhance the future value of properties in Cavite.
abs-cbn.com | New LRT-1 Cavite Extension opens, seen to improve Metro Manila commuting | Image source: https://www.abs-cbn.com/news/2024/11/16/new-lrt-1-cavite-extension-opens-improving-metro-manila-commuting-1100
Government Policies
The government’s “Build, Build, Build” program is focusing on infrastructure development nationwide including Cavite. These developments increase property demand and hence land value. These policies not only boost the present value of properties but also ensure sustained growth.
Economic Growth and Migration Trends
Cavite is getting an influx of residents from Manila due to its affordability and proximity to the capital. More people moving to the province means more demand for housing and real estate and property values go up. This migration trend positively impacts an investment’s performance in the real estate market.
Why Invest in Cavite Real Estate Now?
Cavite has many advantages for real estate investors:
- Land Appreciation: With increasing demand and limited land supply in some areas, land prices will go up.
- Economic Growth: As Cavite’s industrial and commercial sectors grow, property demand will increase.
- Proximity to Manila: Cavite’s location near Manila makes it a good location for residential and commercial developments. Many are moving to Cavite to escape the high cost of living in Manila but still have access to it.
Investors can expect a higher average rate of return due to these factors.
Compound Annual Growth Rate (CAGR) Formula
CAGR is a tool to calculate the average annual return of an investment over a period of time assuming the investment grows at a constant rate. The CAGR formula requires the starting value, ending value, and the number of years. This will help investors calculate the land appreciation over time.
CAGR After 5 Years
To calculate CAGR, we need to know the starting value, ending value and number of years. For example, let’s say a land in Cavite is currently worth PHP 2 million.
If the land appreciates at 6% per year for 5 years, the formula for CAGR is:
CAGR = (Ending Value / Beginning Value)^(1 / Number of Periods) – 1
In this case:
- Ending Value: This is the future value of the land after 5 years of 6% annual appreciation.
- Beginning Value: This is the initial value of the land.
- Number of Periods: This is the number of years, which is 5 in this case.
So, the formula becomes:
CAGR = (Ending Value / Beginning Value)^(1/5) – 1
By plugging in the specific values for the ending and beginning values, you can calculate the exact CAGR.
CAGR After 10 Years
For a 10 year investment period, if the land continues to appreciate at 6% annually, we can use the same formula to calculate the expected growth of land value after 10 years. The CAGR assumes that the investment grows at a constant rate over the period.
Infrastructure Developments and Land Appreciation
Cavite’s property market is driven by ongoing and future infrastructure projects. With several key roads and transport links being built, these developments directly impact land values. More accessible areas have more demand and prices go up. These developments ensure that property values grow at the same rate over time.
Cavite Real Estate: A Long Term Investment
Real estate in Cavite is a long term investment because of the province’s steady growth and infrastructural developments. Short term fluctuations may happen but overall trend is up over the years. CAGR is a valuable metric for assessing long-term investment performance.
Why Invest Now?
Waiting to invest in real estate can sometimes mean missing out. In Cavite, land values will increase and early investors will get bigger returns. Buying now will also allow investors to lock in lower prices before developments push prices up. Investing now allows you to benefit from the compounded annual growth rate of property values.
Risks and Considerations
Real estate investment has risks. Market fluctuations, changes in government policies or slower than expected infrastructure developments can affect land values. Do your research and consider these risks before investing. Evaluating a company’s CAGR can help mitigate investment risks.
Real Estate Investment Strategies
For investors who want to maximize their investment in Cavite, buy in developing areas with high growth potential. Research market trends, evaluate infrastructure developments and be patient with your investment. Comparing the returns from a savings account with real estate investments can provide a clearer insight into potential gains.
Cities with High Value Properties
Cavite has several cities that have seen significant increase in real estate value in recent years. These cities are good for both residential and commercial investment because of their proximity to Manila, ongoing infrastructure projects and overall economic growth. Here are the cities in Cavite with high valued real estate: These cities have shown a strong compounded annual growth rate in property values.
1. Tagaytay
Tagaytay has been a favorite for both residential and commercial real estate because of its cool climate, scenic views of Taal Volcano and proximity to Manila. As a popular weekend getaway and retirement destination, property values in Tagaytay especially near Tagaytay Ridge have gone up. The city’s development especially with new commercial and tourism related projects has further boosted its real estate market. Investing in Tagaytay now can significantly enhance the future value of your property.
If you’re searching for valuable investment opportunities in Bacoor, consider exploring Crosswinds Tagaytay, Alpine Villas, Pinevale and Pine Suites Tagaytay.
2. Bacoor
Bacoor is one of the fastest growing cities in Cavite because of its proximity to the southern part of Metro Manila. Bacoor’s location along major roads like Manila-Cavite Expressway (CAVITEX) and ongoing infrastructure projects like Cavite-Laguna Expressway (CALAX) has led to more residential developments and commercial centers. As more people move to Bacoor for affordable housing, land values have gone up. The present value of properties in Bacoor is already high due to its strategic location.
If you’re seeking a convenient and valuable residential investment in Bacoor, the following properties are excellent options: Camella Carson, Citta Italia, Ponticelli, and Milano.
3. Dasmariñas
Dasmariñas is the most populous city in Cavite and is still a big player in the real estate market. Its residential areas especially those near schools, malls and major roads have seen increase in value. The city’s development as an urban hub with its own business districts, malls and industrial zones makes it attractive to investors and homebuyers. Dasmariñas’ proximity to Cavite Expressway further boosts its real estate market. The city’s development positively impacts an investment’s performance in the real estate market.
4. Imus
Imus is experiencing urbanization, its central location and proximity to Manila has contributed to its real estate growth. The city is known for its mixed use developments, residential, commercial and industrial properties. With the completion of major infrastructure projects like Cavite-Laguna Expressway, Imus is still seeing increase in property values especially in areas near malls and business centers. Investors can expect a higher average rate of return due to the city’s growth.
Settle into premium living with properties in Imus. Explore Camella Bucandala as a prime investment opportunity.
5. General Trias
General Trias is another city in Cavite that has seen significant increase in real estate value. The city has several large scale residential developments and industrial parks. Its proximity to Cavite Expressway (CAVITEX) makes it a good location for commuters going to Manila. As more businesses move in and infrastructure projects expand, land values in General Trias have gone up. Property values in General Trias have grown at the same rate over the years.
Elevate your lifestyle with premium properties in Imus. Explore your investment options in Camella General Trias and Allegria.
6. Silang
Silang is located north of Tagaytay and is more of a rural setting but is slowly becoming a popular location for residential developments. Its scenic views and growing proximity to the more developed areas of Tagaytay and Cavite makes Silang a good investment area for real estate. Residential communities, resorts and commercial developments are sprouting up and land values are going up. CAGR is a valuable metric for assessing long-term investment performance in Silang.
Experience the best of Silang with Camella Terrazas and Camella Alta Silang. Your ideal investment awaits.
7. Cavite City
Cavite City being one of the oldest cities in the province has seen a revival in real estate development in recent years. It is the gateway to the province with its proximity to Manila and historical significance. The city has several commercial establishments and ongoing infrastructure projects will further boost its appeal. As more developments are planned, property values in Cavite City will go up. Cavite City has shown a strong compounded annual growth rate in property values.
8. Trece Martires
Trece Martires being the capital city of Cavite is slowly becoming a hot spot for real estate development. Being in the center of the province it has attracted a mix of residential, commercial and institutional projects. As more industries and businesses expand in the area land values will go up making it a good option for investors. Evaluating a company’s CAGR can help investors make informed decisions about properties in Trece Martires.
Conclusion
These cities in Cavite are high value real estate areas driven by infrastructure, population growth and increasing demand for housing and commercial spaces. With ongoing developments these areas will continue to appreciate and are good locations for real estate investment.
Invest in Cavite now for a better investment opportunity. Growth is strong, infrastructure is ongoing and land is in demand. Calculate land appreciation and CAGR and make your move. Hurry! 😊