Demographics

• Population density

Due to the positive economic outlook and the urbanization of the Philippines, the Filipino population
continues to grow which leads to further mobility issues on an everyday basis. Because of the
working Filipino population’s high density, the delays due to traffic congestion are inevitable. This
demographic factor was recognized by Ayala Land and the company’s realization was that there are
opportunities to prevent the issue of losing work hours and business opportunities by providing
pedestrian-friendly and transport-oriented developments. These developments include facilities that
promote walkability, ease street congestion, and improve the pedestrian experience. Examples of
these facilities can be observed from the new projects of Ayala Land at the Bonifacio Global Center
(BGC). Based from previous projects of Ayala Land, they designed a 1.2-kilometer strip at the BGC
which is called the Bonifacio High Street (BHS) that is for pedestrians use only. Along with this, Ayala
Land continues to further improve BGC’s pedestrian environment in order to cope with the high
population density by traffic improvement measures such as pedestrian traffic signals, speed limits,
speed tables, and greenways, among others. On other areas, an extensive system of pedestrian
underpasses, elevated walkways, covered sidewalks, public transport stops and terminals, and
rebuilt sidewalks were made and implemented to transform the place from a congested area to a
haven for pedestrian and commuters.

• Economic Class

In the Philippines, majority of the population belong to the lower and middle economic class who
cannot afford quality residential houses. The Ayala Land, having acknowledged this other
demographic factor, used their expertise and track record to build new residential subsidiaries,
namely “Amaia” and “BellaVita”, to provide quality yet affordable housing for broader markets.
Amaia’s affordable housing was made possible by their active involvement with the Subdivision and
Housing Developers Association (SHDA). With the help of SHDA, Amaia has been successful in
pushing for the inclusion of Mass Housing into the Investment Priority Plan (IPP) of the Board of
Investments (BOI). In effect, the government incentives for developers will be retained, which is then
passed on to customers in the form of more affordable prices. Meanwhile, BellaVita makes home
ownership for more Filipinos possible through their extensive effort in partnering with various
companies that meet the needs of the socialized housing market. Together with the Metro Manila
Development Authority, PLDT-Smart Foundation, and other partners, they have developed various
financing mechanisms to reach out to soldiers, public school teachers, cooperative members, and
ordinary citizens. With Amaia and BellaVita, the Ayala Land continues to expand their presence and
cater to the sheltering needs of those in the lower and middle economic class by offering affordable,
high-class houses.

Socio-Cultural

• Advertising Techniques

One Socio-Cultural factor that Ayala Land recognized was the utilization of advertising techniques. In
the Philippines, Overseas Filipino workers (OFWs) play a major role in keeping the country’s
economy afloat. Because of this, the influx of OFW remittances together with their desires to
acquire a quality home in the Philippines was embarked upon by Ayala Land to establish an Amaia
International Sales Team which kicked off the “Bagong Bayani, Bagong Bahay Handog ng Amaia”
campaign. By utilizing various platforms, the program yielded remarkable results. There was a 69%
growth in sales from OFWs and the social media fan base grew to more than 320,000. In fact, in
2013, the Philippines was considered a hot spot for real estate due to these growths in the market
brought about by the OFWs. Another successful execution of the integrated marketing brand
campaign “I am Amaia” resulted in an unprecedented 83% in brand awareness and 70,000 hits in its
social media page, topping other players in the economic housing segment.

• Generations (Gen X, Gen Y – Millenials)

Another Socio-Cultural factor that Ayala Land should take into consideration is the generation they
cater to. For example, “Baby boomers” or those who were born between 1945 and 1964 (those who
are 54 to 73 years old) may potentially or significantly influence the real estate market. One of the
most interesting generational trends in the last century is the transition of these baby boomers to
retirement and these retirements are bound to be noticed in the market for decades to come. This
generational trend may cause an apparent increase in the market sales of Ayala Land since, as baby
boomers retire, the demand for permanent quality housing increases.

Natural

• Climate Change and Natural Resources Depletion

According to the Integrated Annual and Sustainability Report of Ayala Land in 2014, the Philippines
ranks third among the countries globally that are most vulnerable to climate change. Because
resilience is best seen as the ability to overcome these challenging times, Ayala Land continuously
develops projects that are able to reduce risks and also thrive for generations. One example would
be their creative use of passive design to minimize water usage. In particular, Nuvali’s Solenad and
Evoliving zones have a man-made lake that runs through its retail and business districts. The lake
provides people a great place for relaxation because of the boat rides and the kois that inhabit the
lake water which can be fed by visitors. Just behind the Evoliving Center is the South Evozone
Wetland which is a part of the storm-water management system of the Nuvali estate. The system
helps preserve water and minimize water usage by having a filter that removes potential pollutants
and sediments from storm-water. After this, it is either slowly absorbed into the ground or released
to the man-made lake. Some of other sustainability efforts of Ayala Land in water management
include pilot operation of water recycling properties in UP Ayala Land TechnoHub.

• Vulnerability to Disasters

Because of the previous years’ natural calamities, the need for resilient communities was sharpened.
This factor was recognized and addressed by the Ayala Land through the project development cycle
and technical due diligence (TDD) process. This process ensured that all land acquisitions and
projects were screened for geo hazards and project impacts on surrounding communities, including
the ecosystem. Some of these projects include parks and open spaces in Alveo developments, such
as Venare and Mirala, that does not only provide amenities for their residents, but also ensure
optimum water absorption into the ground which makes the project designs storm-sensitive.