Is it worth it buying property in Manila in 2025?

Authored by the expert who managed and guided the team behind the Philippines Property Pack

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Manila. If you'd like to learn more about us, you can check our presentation page.

What kinds of properties are available in Manila right now?

Manila's property market offers several distinct types of properties as of September 2025.

Condominiums dominate the market and represent the most accessible option for foreign buyers. These range from studio units starting around ₱3 million to luxury penthouses exceeding ₱30 million. The condo oversupply situation means buyers have extensive choices across all price ranges and can negotiate significant discounts.

Townhouses and single-family houses are available but with restrictions for foreigners who cannot directly own land. Filipino buyers have access to townhouses ranging from ₱8 million to ₱28 million, single-attached homes, and luxury houses in exclusive subdivisions. Foreign buyers can access these through long-term land leases or corporate ownership structures.

Pre-selling and new development projects are particularly abundant in emerging districts like Quezon City, Alabang, and Mandaluyong. These projects often offer attractive payment terms and early-bird pricing, though buyers should verify developer credentials carefully.

Commercial units, serviced apartments, and mixed-use developments provide investment opportunities for those seeking rental income or business use.

Is it smarter to buy or just rent a place in Manila in 2025?

Renting is currently the smarter financial choice for most people in Manila during 2025.

Rental prices have dropped to 15-year lows, with many properties available at 50-60% below pre-pandemic rates due to oversupply. Renters receive incentives like free months, flexible terms, and access to high-quality units that would require substantial capital to purchase. This creates exceptional value for tenants who can access premium accommodations with minimal upfront investment.

Buying makes sense for specific scenarios: long-term residents planning to stay 7+ years, buyers who find distressed sales in emerging areas, or investors who can negotiate 10-20% discounts from asking prices. The current market provides strong leverage for price negotiations, making it potentially attractive for patient buyers.

The key factor is your timeline and flexibility needs. Short-term stays heavily favor renting, while long-term, stable plans in emerging districts can justify buying if you secure favorable pricing.

It's something we develop in our Philippines property pack.

How much did property prices cost before, how much do they cost now, and what's the forecast?

Manila property prices have experienced significant fluctuations over the past five years with clear trends emerging for 2025-2026.

The forecast shows emerging areas like Cavite, Laguna, Bulacan, Quezon City, and Alabang will likely outpace central business districts due to infrastructure development and decentralization trends. These areas benefit from new transport links and more affordable entry points for both residents and investors.

What are the main real estate market trends in Manila right now?

Several key trends are shaping Manila's real estate landscape in 2025.

Condo oversupply in prime districts creates a sustained buyer's and renter's market. This oversupply particularly affects Makati, BGC, and other established central business districts where developers built extensively during pre-pandemic boom years. The result is increased negotiating power for buyers and renters.

Market shift toward affordable and mid-market housing shows strong demand in Quezon City, Alabang, and suburban zones. These areas attract buyers seeking better value propositions and larger living spaces compared to premium CBD locations.

Rental yields remain attractive at 4.5-7.2% depending on unit type and district location. These yields reflect the income potential for investors who can manage vacancy risks effectively.

Interest rate decreases are expected to improve affordability for local buyers, though foreign buyers typically require cash purchases. Infrastructure investments in emerging areas drive property appreciation in districts with new transport links and development projects.

Sustainable and technology-enabled developments represent growing market segments as developers respond to evolving buyer preferences for smart buildings and eco-friendly features.

What's the exact step-by-step process for buying a property in Manila as a foreigner or expat?

Foreign property buyers in Manila must navigate specific legal restrictions and procedures.

Understanding ownership restrictions is crucial: foreigners may only purchase condominiums with a maximum of 40% foreign ownership per building. Foreigners cannot directly own land except through inheritance. Alternative structures include 50-year renewable land leases, purchasing through Philippine majority corporations where foreigners hold less than 40% ownership, or buying buildings while leasing the underlying land.

The purchase process begins with engaging a trusted real estate agent or working directly with reputable developers for new projects. Search and view properties that meet your criteria and budget. Reserve your chosen property and negotiate the purchase price, leveraging current market conditions for potential discounts.

Sign the Sales Purchase Agreement and pay the required deposit, typically 10-30% of the purchase price. Conduct thorough due diligence including checking property titles, liens, ownership structure verification, and developer compliance records.

Settle remaining balances and prepare for transaction costs of 8-16% of the property price covering taxes and fees. Complete the notarized Deed of Sale and receive the Condo Certificate of Title.

Financing options for foreigners are extremely limited, with most purchases requiring cash payment. Local mortgage options are rarely available to non-residents, so ensure adequate liquid capital before beginning the purchase process.

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Where's the best place to look for property—are real estate agencies the way to go?

Professional real estate agencies provide the most reliable path for property purchases in Manila.

Trusted agencies include KMC Savills, Santos Knight Frank, CBRE Philippines, and JLL Philippines. These established firms offer comprehensive local market knowledge, ensure proper due diligence procedures, and provide essential legal guidance throughout the transaction process. Their expertise becomes particularly valuable for foreign buyers navigating complex ownership restrictions and legal requirements.

Online directories serve as useful research tools for initial property searches. Sites like Lamudi and Preselling.com.ph showcase available units including pre-selling and resale properties. Developer portals provide direct access to new project information and pricing.

Direct developer purchases can work for new projects, but professional agents still add value through price negotiation and legal process management. Agents understand current market conditions and can leverage oversupply situations to secure better terms for buyers.

The key is selecting reputable professionals with proven track records, proper licensing, and strong local connections. Avoid unlicensed brokers or unclear online listings that may represent scams or problematic properties.

What types of properties can you realistically get depending on your budget?

Manila's property market offers distinct options across different budget ranges as of September 2025.

The current market conditions mean buyers can often negotiate 10-20% below these ranges, particularly in oversupplied areas. Emerging districts offer better value propositions with larger spaces and growth potential compared to established premium areas.

What are the most common mistakes people make when buying property in Manila and how to avoid them?

Several critical mistakes can cost buyers significant money and create legal complications.

Failing to verify property titles and developer reputation represents the most dangerous oversight. Always conduct comprehensive due diligence including title searches, lien checks, and developer financial health verification. Scams and problematic developments can result in total investment loss.

Underestimating transaction costs catches many buyers unprepared. Budget 8-16% of purchase price for taxes, legal fees, registration costs, and other mandatory expenses. Additionally, factor in ongoing property taxes and association dues for condominiums.

Ignoring foreign ownership restrictions leads to legal problems later. Remember that foreigners cannot directly own land and are limited to 40% of units in any condominium building. Verify building foreign ownership ratios before committing to purchases.

Assuming mortgage financing availability for foreign buyers creates cash flow problems. Most foreign buyers must pay cash, so ensure adequate liquid capital before starting the purchase process.

Buying in oversupplied areas without considering resale potential can trap capital in slowly appreciating assets. Research local supply-demand dynamics and focus on emerging areas with growth catalysts rather than saturated prime districts.

It's something we develop in our Philippines property pack.

What's the cost of living like in Manila compared to the property investment needed?

Manila offers moderate living costs relative to regional standards, though property investment requirements remain substantial.

Daily expenses including groceries, dining, transportation, and utilities cost significantly less than Singapore, Hong Kong, or other major Asian cities. Local transportation, street food, and domestic services provide excellent value for money. Imported goods and international-standard services command premium pricing but remain accessible.

Property investment requirements create the largest financial commitment. While rental costs are currently very low due to oversupply, property ownership requires substantial capital outlays plus ongoing expenses. Decent condos rent for ₱20,000-₱40,000 monthly in good districts, while purchasing similar units requires millions in upfront capital.

Property ownership includes additional costs beyond purchase price: monthly association dues, property taxes, maintenance fees, and insurance. These ongoing expenses can add ₱5,000-₱15,000 monthly depending on property type and location.

Rental yields of 4-7% help offset ownership costs for investors, but vacancy risks in oversupplied areas can impact actual returns. The cost-benefit analysis favors renting for most residents given current market conditions and low rental rates.

Which areas are the best to buy in—affordable neighborhoods, upcoming hot spots, or upscale districts—and what are their pros and cons?

Different Manila districts offer distinct advantages and challenges for property buyers in 2025.

Emerging areas like Quezon City and Alabang currently offer the best combination of affordability, growth potential, and rental demand. These districts benefit from infrastructure development while avoiding the oversupply issues affecting premium CBDs.

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.

What's life like as an expat living in Manila day to day?

Manila provides a relatively comfortable environment for expat living with both advantages and challenges.

International infrastructure includes quality schools, healthcare facilities, shopping malls, restaurants, and social clubs that cater to expat communities. The dining scene offers exceptional variety from local street food to international fine dining, while nightlife and entertainment options provide vibrant social opportunities. The large expat community creates networking opportunities and social support systems.

Language barriers remain minimal since English is widely spoken in business, education, and service sectors. Most expats can navigate daily activities without learning Filipino, though basic local language knowledge helps with cultural integration.

Traffic represents the most significant daily challenge, with major congestion affecting commute times and daily planning. Proximity to work, schools, and essential services becomes crucial for quality of life. Many expats choose housing based on commute considerations rather than property features alone.

Utilities, internet, and security systems generally function well in major developments, though power outages and water interruptions can occur. Modern condominium complexes and planned communities typically provide reliable infrastructure and 24-hour security services.

The tropical climate requires adjustment for those from temperate regions, with year-round warmth and distinct wet/dry seasons affecting lifestyle patterns and housing preferences.

If you rent the property out long-term, which areas should you target, what kind of tenants will you get, what do they want, and how much income and yield can you expect?

Long-term rental strategies should focus on districts with strong tenant demand and manageable vacancy risks.

Target areas include Quezon City for students and young professionals, Alabang for expat families and local executives, and Mandaluyong for commuters working in nearby business districts. These areas demonstrate consistent rental demand while avoiding the oversupply issues affecting premium CBDs.

Typical tenants include university students seeking affordable accommodations near schools, BPO workers requiring convenient access to call centers and business districts, young professionals starting their careers, and expat families needing family-sized units with international school access.

Tenant preferences focus on reliable internet connectivity for remote work, proximity to public transportation, security features, parking availability, and reasonable association fees. Modern amenities like swimming pools, gyms, and function rooms add rental appeal but also increase operating costs.

Rental yields range from 4.5-7% in prime performing areas, though vacancy risks can significantly impact actual returns. The oversupplied market means landlords often provide incentives like free months or reduced rates to secure tenants. Successful long-term rental strategies require careful tenant screening, competitive pricing, and proactive property management.

Monthly rental income varies by location and property type, with 1-bedroom units generating ₱15,000-₱35,000 and larger units commanding ₱25,000-₱60,000 depending on location and amenities.

If you rent the property out short-term, what areas make sense, what kind of guests you'll get, what's the expected income and yield, and what are the regulations you need to know?

Short-term rental opportunities target business and leisure travelers in specific Manila districts.

Optimal areas include Makati, BGC, Manila Bay, and Ortigas due to proximity to business centers, tourism attractions, nightlife, and international airports. These locations attract guests who prioritize convenience and are willing to pay premium rates for short stays.

Typical guests include business travelers attending meetings or conferences, international tourists exploring Manila attractions, returning Filipino overseas workers visiting family, and digital nomads seeking temporary accommodations. These guests value location convenience, modern amenities, and professional hosting standards.

Potential yields can exceed 8-10% in top-performing locations, though actual returns depend heavily on occupancy rates, management costs, and seasonal demand fluctuations. Short-term rentals require more active management than long-term leasing including guest communication, cleaning services, and property maintenance.

Regulatory considerations include condominium association rules that may restrict or prohibit short-term rentals. Many upscale buildings implement policies limiting short-term guests to maintain residential character and security standards. Verify building regulations before purchasing properties intended for short-term rental use.

Additional compliance requirements may include business registration, tax obligations, and safety certifications depending on local government regulations and property management policies.

It's something we develop in our Philippines property pack.

So overall, is it worth it to buy in Manila in 2025—for living, for renting out, or for buying to resell later at a higher price?

Manila property investment viability in 2025 depends heavily on your specific objectives and timeline.

For living purposes, buying makes sense for long-term residents planning 7+ years in Manila who can secure favorable pricing through current market conditions. The oversupply situation provides negotiating leverage for 10-20% discounts, while established infrastructure and expat-friendly environment support comfortable long-term living. However, short-term residents should favor renting given exceptional rental value and flexibility benefits.

For rental investment, the market offers cautious optimism with important caveats. Focus on emerging districts with demand growth rather than oversupplied CBDs. Quezon City, Alabang, and similar areas demonstrate better rental prospects than Makati or BGC. Successful rental strategies require careful area selection, competitive pricing, and active vacancy management.

For resale speculation, only emerging neighborhoods with infrastructure catalysts present viable opportunities. CBD property flipping carries significant risks due to oversupply and slow price recovery. Areas benefiting from new transport links, government development projects, or demographic shifts offer better appreciation potential than established premium districts.

The bottom line: 2025 represents a renter's market with selective buying opportunities for patient investors. Success requires thorough market research, reputable professional guidance, and realistic expectations about returns and timelines. Use established agencies, verify all legal requirements, and avoid common pitfalls to maximize your investment success.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. BambooRoutes Manila Property Analysis
2. Bed&Go Manila Real Estate 2025 Report
3. OnePropertee Pre-selling Houses Philippines 2025
4. Preselling.com.ph Manila Properties
5. Property Developments Philippines
6. InvestAsian Real Estate Agents Philippines
7. BambooRoutes Philippines 5-Year Forecast
8. BambooRoutes Philippines Price Forecasts
9. Philippine Daily Inquirer Real Estate 2025
10. EmerHub Foreign Property Buying Guide