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What will happen in Calabarzon’s real estate market? Will prices go up or down? Is Laguna still a hotspot for foreign investors? How is the Philippine government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who buy properties in Calabarzon, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Demand for residential properties in Calabarzon will rise as overseas Filipino workers show more interest in investing
Overseas Filipino workers (OFWs) are showing a growing interest in investing in Calabarzon, which is set to boost the demand for residential properties.
Between April and September 2023, OFWs sent home about 116.5 billion Philippine pesos in remittances, mostly through bank transfers. This surge in remittances means OFWs have more disposable income, making it easier for them to invest in real estate.
Surveys reveal that the percentage of OFWs interested in owning properties jumped from 8.1 percent to 11.7 percent in the second quarter of 2023. This shift highlights a growing trend among OFWs to invest in real estate, naturally boosting demand for residential properties.
Calabarzon stands out as a strong investment hub outside Metro Manila, thanks to its economic growth and rising property values. The region's development, coupled with improved infrastructure and transportation links, makes it an attractive investment destination.
These improvements facilitate easier access to properties and potential rental income, further driving demand. The region's appeal is enhanced by its proximity to Metro Manila, offering a balance of urban convenience and suburban tranquility.
As more OFWs look to invest in Calabarzon, the demand for residential properties is expected to rise, creating opportunities for both buyers and investors. The region's growth potential and strategic location make it a promising choice for real estate investment.
Sources: Statista, PPIE, Inquirer
2) Calabarzon property prices will keep rising as new infrastructure improves links to Metro Manila
Residential property prices in Calabarzon have been on the rise, with an average annual increase of 6% from 2016 to 2023.
In 2023, the trend continued with a 6.5% year-on-year increase in the fourth quarter, according to the Bangko Sentral ng Pilipinas. This surge is largely due to improved connectivity between Calabarzon and Metro Manila.
Projects like the Cavite-Laguna Expressway (CALAX) have transformed once remote areas into prime locations for property buyers. The North-South railway project, including the South Commuter Railway, is also making the region more accessible and attractive.
The Department of Public Works and Highways is pouring funds into road and bridge works, boosting economic development in Calabarzon. This infrastructure investment is drawing in real estate developers eager to tap into the region's growth potential.
As more developers enter the market, the demand for residential properties is climbing, driven by a desire for affordable housing and better living conditions outside Metro Manila.
With these ongoing developments, it's clear that property prices in Calabarzon will keep rising as connectivity with Metro Manila improves.
Sources: Global Property Guide, World Highways, Railway Technology
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Rental yields will rise significantly near new transport hubs as commuting gets easier
Rental yields are set to rise in areas close to new transportation hubs as commuting becomes easier.
Take Calabarzon, for example, where infrastructure upgrades have already boosted property values. When the Cavite-Laguna Expressway (Calax) extension wrapped up in 2023, it eased traffic and improved access to industrial zones. This led to rental rates jumping by 14% in Tanza and 25% in Dasmarinas.
In Bulacan, the Plaridel Bypass Road expansion, finished in early 2024, cut down on traffic jams and sparked real estate growth. This attracted big e-commerce and retail companies, pushing up land and industrial property prices. It's clear that better transportation links can directly boost property values and, in turn, rental yields.
People are showing a strong preference for homes near transportation hubs, according to surveys and market studies. This trend is likely to push rental yields higher as more tenants choose these convenient spots. In Calabarzon, ongoing projects like the Cavite-Batangas Expressway and the SLEX TR4 extension are set to improve connectivity and economic activity, further driving up property values and rental yields.
These infrastructure projects are not just about roads; they're about transforming regions into thriving economic zones. As commuting becomes more convenient, areas around these hubs are becoming hot spots for real estate investment.
Investors are keenly watching these developments, knowing that improved infrastructure often leads to higher demand for nearby properties. This demand naturally translates into better rental yields, making these areas attractive for both investors and tenants.
Sources: Inquirer, FMP Fervid, Camella
4) Property prices in rural Calabarzon will dip slightly as urbanization focuses on developed areas
Some rural areas in Calabarzon are seeing a slight decline in property prices as urbanization shifts focus to more developed areas.
In recent years, people have been moving from rural to urban areas within Calabarzon, with urban centers like Cavite, Laguna, and Batangas driving economic growth. This migration is fueled by major property developers who are building high-quality townships and residential developments in these urban areas, making them more attractive to residents.
Government infrastructure projects are also playing a role, as they are often concentrated in urban centers, enhancing their appeal and economic growth. This focus on urban development is leaving rural areas with less demand for properties, contributing to the decline in prices.
Real estate market reports highlight this trend, with data from the Bangko Sentral ng Pilipinas showing a decline in residential real estate prices in the third quarter of 2024. This is partly due to the lower demand in rural areas, as younger generations are drawn to urban living for better job opportunities and amenities.
Surveys reveal that younger people prefer urban areas, which offer more job prospects and amenities, further decreasing interest in rural properties. This preference is shaping the real estate market, as developers and investors focus on urban growth.
As urbanization continues to reshape the region, rural areas in Calabarzon may experience a continued decline in property prices, while urban centers thrive with new developments and infrastructure.
Sources: BusinessWorld, Inquirer Business, Inquirer Plus, PSA Calabarzon
5) Foreign investments in Calabarzon's residential market will rise as foreign ownership laws are relaxed
The relaxation of foreign ownership laws in Calabarzon is set to boost foreign investments in the residential market.
In 2023, the Philippine Statistics Authority noted a jump in approved foreign investments, hitting 59.09 billion pesos, which marks a 27.8% increase from the previous year. This uptick highlights a growing interest from international investors in the country's real estate sector.
Platforms like Lamudi have seen a rise in rental demand from overseas property seekers, especially from Singapore and the Middle East. Singapore leads in inquiries for condos and houses, showing a keen interest in the Philippine market. As ownership laws become more favorable, this interest is likely to turn into real investments.
Historically, changes in legislation, like tweaks to the Foreign Investments Act, have made investing easier and more appealing, boosting foreign direct investment. The recent law changes are expected to continue this trend, drawing in traditional investors from the US and new ones from Europe.
The government's push to make business operations smoother further supports this positive outlook. Efforts to simplify processes are crucial in attracting more foreign investments.
With these developments, Calabarzon's residential market is poised for growth, driven by a mix of legislative support and international interest. Foreign investors are eyeing opportunities in this region, eager to capitalize on the favorable conditions.
Sources: Withers Worldwide, GMA Network, HSBC Business
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6) Property prices in Cavite will rise steadily as families prefer suburban living with easy access to Metro Manila
Cavite is quickly becoming a top pick for families seeking suburban life with easy access to Metro Manila.
Thanks to new infrastructure like the Cavite-Laguna Expressway (CALAX) and the CAVITEX C5 Link, commuting is now faster and more convenient. This is a huge plus for city workers who want to enjoy a quieter, more spacious home life. These projects are not just roads; they're lifelines connecting Cavite to the bustling city, making it a sweet spot for those who want the best of both worlds.
Residential demand is on the rise, and it's no surprise. In 2024, vacant lot prices in Cavite jumped by 5-7% as more people sought homes there. Improved transport links are a big reason for this surge. By the end of 2025, the completion of key segments of CALAX and CAVITEX C5 Link is expected to boost traffic by over 30%, highlighting the area's growing popularity.
Population growth is another key factor. Cavite is seeing a steady influx of young and middle-aged folks setting down roots. This growing population means more people are on the hunt for homes, naturally driving up property prices. The trend towards suburban living is strong among Metro Manila residents, who find Cavite's more affordable real estate prices appealing.
For those eyeing a move, Cavite offers a compelling mix of affordability and accessibility. The area's development is not just about new roads; it's about creating a lifestyle that balances city convenience with suburban peace. As more families discover this, property prices are expected to continue their upward trend.
With its strategic location and ongoing development, Cavite is poised to become a preferred residential hub. The combination of infrastructure improvements and population growth is setting the stage for a vibrant community. Expect property values to rise as more people choose Cavite for its unique blend of benefits.
Sources: AIIB, City Population, Cavitex
7) More foreign investors will target Calabarzon because of its strategic location and growth potential
Foreign buyers are eyeing Calabarzon for its strategic location and growth potential.
In recent years, foreign direct investment in Calabarzon has surged, with international investors recognizing the region's promise. This area is conveniently close to Metro Manila and major economic zones like the Clark Freeport Zone, making it a prime spot for businesses. Companies find it easier to access markets, resources, and talent here, which is essential for expansion.
Government infrastructure projects, such as the North-South Railway Project, are underway to improve connectivity, further enhancing Calabarzon's attractiveness. The region is buzzing with industrial and commercial developments, fueled by the rise of e-commerce and manufacturing. This boom is driving demand for logistics hubs and industrial parks, positioning Calabarzon as a top choice for businesses eager to seize these opportunities.
Moreover, the government is rolling out favorable policies for foreign investors, encouraging more international companies to establish operations in the area. The strategic location and ongoing developments make Calabarzon a hotspot for investment. Investors are drawn to the region's potential for growth and its proximity to key economic zones.
As infrastructure improves and policies become more favorable, Calabarzon's appeal to foreign investors continues to grow. The region's strategic advantages and development projects are making it an increasingly attractive destination for international investment. Businesses looking to expand are finding Calabarzon's location and resources hard to resist.
Sources: Business World Online, DTI, Railway Technology, Business Inquirer
8) Rental yields in suburban areas will increase as remote workers seek larger homes outside Metro Manila
Remote work is reshaping where people choose to live.
In recent years, many have been on the hunt for homes with more space, especially those that can fit a home office. This trend is particularly noticeable in suburban areas like Calabarzon, where folks are moving to find larger living spaces and better amenities. As property prices in Metro Manila keep climbing, more people are eyeing suburban areas for better value. Even though the market in Metro Manila is stabilizing, the high prices push people to look for more affordable options outside the city.
Surveys show that a large number of employees prefer remote or hybrid work setups, which are easier to manage in suburban settings. The Philippines has been investing heavily in improving internet connectivity, making suburban living more appealing. With better internet access, people can work remotely more efficiently, which supports the trend of moving away from crowded urban centers.
Real estate analysts have noted that this shift in residential preferences is driving up property prices in suburban areas, leading to higher rental yields. The rise of remote work is leading to higher rental yields in suburban areas as people seek larger living spaces outside Metro Manila. This trend is supported by surveys showing that a large number of employees prefer remote or hybrid work arrangements, which can be more easily accommodated in suburban settings.
As property prices in Metro Manila continue to rise, more people are considering suburban areas for better value. Even though the market in Metro Manila is stabilizing, the high prices push people to look for more affordable options outside the city. This trend is supported by surveys showing that a large number of employees prefer remote or hybrid work arrangements, which can be more easily accommodated in suburban settings.
Additionally, the Philippines has been investing heavily in improving internet connectivity, making suburban living more appealing. With better internet access, people can work remotely more efficiently, which supports the trend of moving away from crowded urban centers. Real estate analysts have noted that this shift in residential preferences is driving up property prices in suburban areas, leading to higher rental yields.
Sources: Remote People, World Bank, Minut Blog, Exploding Topics
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Rental yields in Calabarzon will rise as professionals and families relocate for improved living conditions
Rental yields in Calabarzon are on the rise as more professionals and families flock to the area for better living conditions.
Calabarzon's population is booming, with expectations to hit around 16 million by 2025. This surge is mainly due to migration, as people are attracted by the region's growing economy and urbanization. As more folks settle in, the demand for housing naturally spikes, pushing rental yields higher.
The government's "Build Better More" initiative is a game-changer, enhancing connectivity and infrastructure across Calabarzon. These upgrades not only increase property values but also make the region more appealing to live in, further boosting the demand for homes. With 31 world-class industrial estates and economic zones, major companies are setting up shop, fueling economic growth and creating jobs, which draws even more residents.
People are choosing Calabarzon over Metro Manila for its cleaner air and lower pollution levels. The region's natural beauty, with spots like Tagaytay and Batangas, adds to its charm, making it a hot spot for living and investment. This preference is evident in the rising property values and the growing interest in sustainable and green developments.
As more professionals and families move to Calabarzon, the region's rental market is thriving. The combination of economic opportunities, improved infrastructure, and a healthier environment makes it an attractive choice for those seeking a better quality of life.
With these factors in play, Calabarzon is set to become a prime real estate destination, offering promising returns for investors and a desirable living environment for residents.
Sources: Inquirer Business, PRB, Inquirer Business
10) Rental yields in rural areas will drop as more people move to cities
In recent years, urban migration has reshaped regions like Calabarzon.
People are flocking to cities, drawn by better infrastructure and job opportunities. Calabarzon, with its booming manufacturing and tech industries, has become a hotspot. Improved transportation and connectivity make urban living more appealing, pushing up demand for rentals and property prices.
Employment is a major pull factor, especially for the younger crowd. They’re heading to cities for better job prospects, leaving rural areas with fewer tenants. This shift is causing rental yields in the countryside to dip as urban areas thrive.
Calabarzon's urban allure is undeniable, with its bustling industries and modern amenities. As more people choose city life, rural rental demand is taking a hit. The trend is clear: urban centers are the new frontier for growth and opportunity.
For potential property buyers, understanding this migration pattern is crucial. Investing in urban areas might offer better returns, while rural properties could face challenges. The urban pull is strong, reshaping the real estate landscape.
As cities expand, rural areas might struggle to keep up. The draw of urban living is powerful, and rural rental yields are feeling the pressure. This shift is transforming how and where people choose to live.
11) Property prices in Calabarzon will rise moderately as new businesses boost housing demand
Calabarzon is buzzing with new businesses, making it a hotspot for economic growth.
In 2023, the region saw a surge in business registrations, with 189,662 MSME establishments popping up. This boom in entrepreneurship is a clear sign of a thriving economy, drawing more people to the area. As these businesses expand, they create more job opportunities, which in turn boosts the local employment rate.
By April 2024, Calabarzon's employment rate had climbed to 94.7%, up from 94.1% just a few months earlier. With more people finding work, there's a growing need for housing as folks want to live closer to their jobs. This demand is pushing property prices up, as more people are on the hunt for homes.
Adding to the appeal, the government is rolling out infrastructure projects to improve connectivity within the region. Better transportation links make commuting a breeze, making residential areas near business hubs even more desirable. This ease of travel is another reason why housing demand is on the rise.
All these factors are contributing to a moderate increase in property prices. More people are competing for the limited housing options available, driving up the cost of homes. If you're considering buying property here, it's a good idea to act sooner rather than later.
With the influx of new businesses and improved infrastructure, Calabarzon is becoming a prime location for both living and working. The region's growth is a testament to its potential as a thriving economic center.
Sources: Regional Accounts Calabarzon, Employment Situation Calabarzon April 2024, Key Trends Shaping Commercial Real Estate in 2025
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12) Calabarzon's property prices will grow more slowly than Metro Manila, making it a more affordable investment option
Calabarzon offers a more affordable investment opportunity compared to Metro Manila due to its slower price growth.
In 2023, while Metro Manila's luxury 3-bedroom condos in central business districts saw a price hike of 3.98%, Calabarzon's property prices grew more modestly. This makes it a great spot for those looking to invest without breaking the bank.
Calabarzon's average property prices are generally lower than those in Metro Manila, making it an attractive option for budget-conscious investors. The cost of living in Calabarzon is also more budget-friendly, adding to its appeal for potential buyers.
Exciting infrastructure projects like the Malolos Clark Railway and the South Commuter Railway are underway in Calabarzon. These developments promise better connectivity, which is likely to draw more residents and businesses to the area, boosting its growth potential.
With these projects, Calabarzon is not just about affordability; it's about future growth. Improved transport links are expected to enhance the region's appeal, making it a smart choice for long-term investment.
Investing in Calabarzon means getting in on the ground floor of a region poised for development, with the added benefit of lower initial costs. It's a region on the rise, offering a blend of affordability and potential.
Sources: World Economic Magazine, Invest Asian, Asian Development Bank, Global Property Guide
13) Property values in Batangas will rise as coastal areas attract more retirees seeking beachfront living
Batangas is quickly becoming a prime spot for property investments, especially along its beautiful coastlines.
People are increasingly looking for second homes and leisure properties to escape the hustle and bustle of city life. In areas like Nasugbu and Laiya, this trend is evident as property investments have surged.
Over the past few years, property values in Batangas have seen a notable rise. By late 2023, Batangas boasted the highest concentration of available units in the country, highlighting its growing allure. The average selling price jumped from Php 92,411 per square meter in 2020 to Php 110,276 in 2023, showing a strong upward trend.
The Philippine government is actively promoting tourism and retirement, drawing more retirees to the country. This influx naturally boosts the demand for real estate, especially in attractive coastal areas like Batangas.
Infrastructure projects like the Manila-Batangas Bypass Road and the Cavite–Tagaytay–Batangas Expressway are making Batangas more accessible, enhancing its appeal to tourists and retirees.
These developments are turning Batangas into a sought-after destination for those seeking beachfront living, both locally and internationally.
Sources: Pocket Communities, Inquirer, BusinessWorld Online
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.