Property developer Ayala Land Inc. (ALI) said Tuesday it will launch P115 billion worth of commercial and residential projects in 2024 after registering a robust growth in 2023.
ALI president and chief executive Anna Margarita Dy said 80 percent of the company’s launches would involve premium commercial and residential projects, as this market remained robust despite the current market conditions.
“Our desire for the core market is to come back, but I think this year, we are still not uncertain how robust that core market will be, which is why we are ready with our premium segment,” Dy said.
Dy said the prolonged weakness in its core market, primarily the middle-income segment, could have negative effect over the medium term.
The current high-interest rate environment and the lingering impact of the pandemic affected the residential sales to middle and affordable markets last year.
“The core market is very reliant on mortgages. So that itself gives you an idea of the changes in behavior. Also, I suppose inflation and everything that has happened since the pandemic, it’s usually the middle market that I guess is more vulnerable to these changes,” Dy said.
She noted, however, that ALI would continue to nurture its brands catering to the middle income and affordable markets and prepares to launch projects once this segment recovers.
The company said that prior to the pandemic, about 60 percent of its launches were premium projects while 40 percent were for the middle-income market.
Most of the launches this year will be in Southern Luzon, Central Luzon and Metro Manila, it said.
Dy said 52 percent of the residential projects would be horizontal and 48 percent, vertical
ALI also set aside P100 billion in capital expenditures primarily to build residential and estate projects, land acquisitions and construction of malls, hotels and offices.
The property firm earlier reported that it was planning to borrow P50 billion this year to partially finance maturing debts and refinance corporate requirements.
“We are optimistic about the opportunities for 2024, but pragmatic in addressing potential challenges of a higher-for-longer interest rate regime,” Dy said.