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
Manila's property market in 2025 offers unique opportunities with condo oversupply creating buyer leverage, while rental rates hit 15-year lows. Whether buying property makes sense depends on your timeline, budget, and specific goals - long-term residents can find bargains, while short-term visitors benefit from historically low rents.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Philippines, based on reliable facts and data, not opinions or rumors.
As of June 2025, Manila's property market faces significant condo oversupply with over 75,000 unsold units, creating a buyer's market with negotiation power, while rental rates are at their lowest in 15 years.
Foreigners can own condos (up to 40% of any building) but cannot directly own land, and the best investment opportunities lie in emerging districts like Quezon City and Alabang rather than oversupplied CBDs.
| Factor | Current Status (2025) | Impact on Buyers |
|---|---|---|
| Condo Prices | Down 9.4% YoY in 2024, flat in 2025 | Strong negotiation power |
| Rental Market | 15-year lows, high vacancy | Excellent for renters |
| Foreign Ownership | Condos only (40% limit) | Limited but clear options |
| Best Areas | Quezon City, Alabang rising | Better value than CBDs |
| Investment Entry | ₱2.5M-₱15M depending on area | Wide range of options |
| Market Forecast | 3-7% growth in select areas | Modest appreciation expected |
| Key Risk | 5-8 year absorption for oversupply | Slow price recovery likely |
What property types can you find in Manila and how do prices compare?
In Manila's property market as of June 2025, condominiums dominate the landscape, especially in business districts like Makati and BGC, where you'll find units ranging from ₱150,000 to ₱300,000 per square meter.
Townhouses offer more space for families and typically cost between ₱90,000 and ₱220,000 per square meter, mostly found in gated communities across Quezon City, Mandaluyong, and San Juan. These properties provide better value per square meter compared to condos while offering privacy and often a small garden area.
Residential lots within Manila proper are extremely scarce and expensive, ranging from ₱337,800 to ₱940,000 per square meter in central areas. However, if you look at suburban areas like Antipolo or neighboring cities, land prices drop significantly to ₱18,000-₱35,000 per square meter, making them attractive for custom home builds or long-term investment.
| Property Type | Price Range (per sqm) | Typical Total Cost | Best For |
|---|---|---|---|
| CBD Condo | ₱150,000-₱300,000 | ₱7M-₱40M | Young professionals, investors |
| Suburban Condo | ₱50,000-₱100,000 | ₱3M-₱20M | First-time buyers |
| Townhouse | ₱90,000-₱220,000 | ₱12M-₱50M | Families seeking space |
| Central Manila Lot | ₱337,800-₱940,000 | ₱20M+ | High-end developers |
| Suburban Lot | ₱18,000-₱35,000 | ₱3M-₱10M | Custom home builders |
| Mixed-Use Units | ₱100,000-₱250,000 | ₱5M-₱30M | Live-work lifestyle |
| Pre-selling Condos | 20-30% below ready units | ₱2.5M-₱25M | Long-term investors |
How have Manila property prices changed and where are they heading?
Manila's property prices have experienced significant volatility since 2020, with the pandemic causing a sharp 14.5% inflation-adjusted drop that year, followed by a gradual but uneven recovery through 2024.
As we reach mid-2025, condo prices in Manila's CBDs show a slight year-over-year decline of 0.7% nominally (2.41% when adjusted for inflation), while the overall Metro Manila residential market remains essentially flat with a 0.4% decline. This contrasts sharply with the nationwide trend, where property prices outside Metro Manila have increased 6.7% year-over-year, indicating that growth has shifted to provincial areas.
Looking forward from June 2025, modest price growth of 3-7% is expected in select Manila areas, particularly those near new infrastructure projects like the MRT-7 and LRT extensions. Areas undergoing redevelopment such as Manila Bay, Ermita, and Malate show promise for appreciation, while the oversupplied condo market in traditional CBDs will likely see continued price pressure through 2026 and beyond.
It's something we develop in our Philippines property pack.
What are the current market trends shaping Manila real estate?
The Manila property market in 2025 is dominated by a massive condo oversupply, with over 75,000 unsold units that could take 5-8 years to absorb at current sales rates.
Developers have responded by dramatically reducing new condo launches and shifting focus to affordable housing projects and suburban developments. This pivot reflects changing buyer preferences, as more people seek properties outside central Manila for better value, more space, and improved quality of life - a trend accelerated by remote work adoption.
The rental market has become extremely competitive for landlords, with rates at 15-year lows due to high vacancy rates. This creates an unusual situation where renting offers exceptional value compared to buying, especially in prime areas where monthly rents have dropped 20-30% from pre-pandemic levels.
Infrastructure development is creating pockets of opportunity, with properties near new MRT and LRT stations seeing increased interest and price resilience. Areas like Quezon City along the MRT-7 line and districts connected to upcoming subway stations are attracting both investors and end-users anticipating future appreciation.
Should you buy or rent in Manila given your situation?
The decision to buy or rent in Manila in 2025 depends heavily on your timeline and financial goals, with the current market conditions strongly favoring renters in the short to medium term.
If you're planning to stay in Manila for less than 5 years, renting is almost certainly the better choice. With rental rates at historic lows and landlords offering incentives like free months or waived association dues, you can live in premium properties for a fraction of the ownership cost while keeping your capital liquid for other investments.
Buying makes sense if you're committed to Manila long-term (7+ years), have stable income, and can find properties in emerging areas with growth potential. The current oversupply gives buyers strong negotiation power, potentially securing 10-20% discounts from list prices, especially on units that have been on the market for months.
- 1. Buy if staying 7+ years and want to build equity2. Buy if you find distressed sales in growth corridors3. Rent if you value flexibility and low upfront costs4. Rent if uncertain about long-term Manila plans5. Rent if you can invest the saved capital at returns above 5-8% annually
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What's the legal process for foreigners buying property in Manila?
Foreigners can legally own condominium units in the Philippines, but are limited to 40% of the total units in any given building - a restriction that developers monitor closely and will verify before accepting your reservation.
The purchase process starts with preparing essential documents including your valid passport, visa or ACR I-Card, and proof of funds through bank statements or certificates. You'll then pay a reservation fee (usually ₱20,000-₱100,000) to secure the unit, followed by signing a Contract to Sell that outlines payment terms and schedules.
Upon full payment, you'll execute a Deed of Absolute Sale and pay various taxes and fees totaling approximately 8-9% of the purchase price. These include capital gains tax (6%, typically shouldered by the seller), documentary stamp tax (1.5%), transfer tax (0.5-0.75%), and registration fees (0.25%). The entire process concludes with title registration at the Registry of Deeds, where you'll receive your Condominium Certificate of Title (CCT).
For land ownership, foreigners must either lease (up to 50 years with a 25-year renewal option) or purchase through a Filipino-majority corporation where they can own up to 40% of shares. Always engage a licensed real estate lawyer to verify title authenticity, check for liens, and ensure all documentation is properly executed.
Where should you search for properties in Manila?
The most reliable online platforms for property searching in Manila include Lamudi.com.ph, which leads the market with verified listings and detailed property information, and DotProperty.com.ph, which offers strong international reach and English-language support.
For maximum security, use BuySellLease.ph, which exclusively features PRC-licensed brokers and verified listings, reducing the risk of scams. Other useful platforms include Rentpad and Berenta for rentals, while Facebook Marketplace offers numerous listings but requires extra caution due to less stringent verification processes.
When working with brokers, choose established firms like Top Realty, KMC Savills, Leechiu Property Consultants, or Pinnacle Real Estate Consulting. Always verify that your broker holds a valid PRC (Professional Regulation Commission) license, which you can check online through the PRC website - this is your best protection against fraudulent transactions.
It's something we develop in our Philippines property pack.
How much money do you need for a decent property in Manila?
Your budget requirements for a "decent" property in Manila vary dramatically based on location, with prime CBD areas commanding premium prices while suburban districts offer significantly better value.
In prestigious areas like Makati CBD or BGC, a one-bedroom condo starts at ₱7 million and can reach ₱15 million for luxury units, while three-bedroom units range from ₱15 million to ₱40 million. These prices reflect proximity to business centers, international schools, and premium shopping areas, though many units currently offer negotiable prices due to oversupply.
Suburban areas like Quezon City, Alabang, or Marikina offer much better value - you can find quality one-bedroom condos from ₱3-8 million and spacious three-bedroom units for ₱8-20 million. Townhouses in these areas typically cost ₱12-25 million, providing gardens, parking, and more living space than similarly priced CBD condos.
For those seeking maximum affordability, emerging areas like Antipolo or San Mateo offer one-bedroom condos starting at ₱2.5 million and townhouses from ₱8 million. While these require longer commutes to business districts, they provide excellent value for families or investors targeting the middle-income rental market.
What are the common mistakes to avoid when buying in Manila?
The most costly mistake buyers make in Manila is failing to verify property titles thoroughly - always hire a lawyer to check for authenticity, liens, adverse claims, or issues with previous transfers that could invalidate your ownership.
Many buyers fall victim to developer delays, particularly with pre-selling projects where completion can be pushed back by years. Research the developer's track record thoroughly, checking their previously completed projects and reading reviews from actual buyers. Avoid developers with multiple delayed projects or those offering prices significantly below market rates.
Manila's flooding issues catch many foreign buyers off guard - numerous districts including parts of Manila Bay, Marikina, and even some areas in Pasig face regular flooding during typhoon season. Always check flood hazard maps from Project NOAH or consult locals about historical flooding before purchasing, and factor in higher insurance costs for flood-prone properties.
- 1. Never skip professional title verification - fake titles exist2. Account for hidden costs: association dues (₱3,000-₱10,000/month), insurance, repairs3. Avoid buying at pre-selling launch prices - negotiate after construction starts4. Check actual (not just advertised) internet connectivity and mobile signal5. Verify parking slots are included - they often cost extra ₱500,000-₱1.5M6. Research building management companies - poor management destroys property values7. Don't trust floor areas in ads - physically measure or verify from approved plans
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 the real cost of living in Manila and does buying make sense?
A single person in Manila needs approximately ₱36,800 per month for basic expenses excluding rent, while a one-bedroom apartment in the city center costs ₱20,000-₱43,000 monthly to rent, making the total cost of living ₱57,000-₱80,000 for a comfortable lifestyle.
When you factor in mortgage payments at current rates of 5-10% annually, owning a ₱7 million condo translates to monthly payments of ₱40,000-₱55,000 over 20 years, plus association dues of ₱5,000-₱10,000 and property taxes. This means owning costs roughly 40-60% more than renting equivalent properties in 2025's market.
The calculation shifts for high earners or those with substantial down payments - if you can put down 50% or more, monthly ownership costs become comparable to renting while building equity. Additionally, if you're earning in foreign currency, the peso's volatility could work in your favor for mortgage payments.
Buying makes financial sense if your monthly income exceeds ₱200,000, you have at least ₱1.5 million for down payment and closing costs, and you're committed to Manila for the long term. Otherwise, the current rental market offers exceptional value while you save for a larger down payment or wait for better market conditions.
Which Manila neighborhoods offer the best value and lifestyle?
Makati CBD and BGC remain Manila's premium districts, offering world-class amenities, international restaurants, and expat-friendly environments, but with condo prices ranging from ₱150,000-₱300,000 per square meter, they're increasingly difficult to justify given the oversupply.
Quezon City emerges as 2025's sweet spot for value and growth potential, with properties 40-50% cheaper than Makati while offering excellent schools, larger living spaces, and improving infrastructure through the MRT-7 line. Areas like UP Diliman, Katipunan, and New Manila provide a more local feel with growing café culture and creative communities.
For maximum appreciation potential, consider Alabang in the south - it's transforming into a mini-CBD with new office towers and retail developments while maintaining a suburban feel. Properties here cost 30-40% less than BGC but offer larger units, better air quality, and family-friendly environments with international schools nearby.
| Area | Price Level | Best For | Key Advantages | Main Drawbacks |
|---|---|---|---|---|
| Makati/BGC | Premium | Expats, executives | Walkable, international | Expensive, oversupplied |
| Ortigas | Mid-High | Young professionals | Central, good transport | Congested, limited charm |
| Quezon City | Mid | Families, artists | Space, schools, culture | Traffic, mixed development |
| Alabang | Mid | Families, investors | Growing CBD, clean | Far from central Manila |
| Manila Bay | Mid | Investors, students | Redevelopment potential | Flooding, older buildings |
| Marikina | Low-Mid | First-time buyers | Affordable, improving | Flood-prone areas |
| Antipolo | Low | Retirees, remote workers | Cool climate, nature | Far commute, limited amenities |
What's daily life really like for foreigners living in Manila?
Manila offers foreigners a vibrant but challenging urban experience, with large expat communities in Makati, BGC, and Ortigas providing easy social integration through clubs, sports groups, and professional networks.
The city's infrastructure presents daily challenges - traffic congestion means a 10-kilometer journey can take 1-2 hours during rush periods, making proximity to work essential. However, the new MRT and LRT extensions are improving connectivity, and ride-hailing apps like Grab provide reliable transport. Most expats find that living within walking distance of their office dramatically improves quality of life.
English is widely spoken throughout Manila, making daily transactions straightforward, while international schools, world-class hospitals like St. Luke's and Makati Medical Center, and modern shopping centers provide familiar Western amenities. The food scene is exceptional, ranging from street food at ₱50 to high-end international dining, with 24/7 convenience stores and delivery services for everything imaginable.
Safety varies significantly by area - BGC and Makati CBD are generally very safe with visible security, while some districts require more caution, especially at night. Most expats report feeling secure once they understand which areas to avoid and basic safety practices like using official taxis or ride-hailing services.
It's something we develop in our Philippines property pack.
Which areas work best for rental investment and what returns can you expect?
Despite the current oversupply, certain Manila areas still generate acceptable rental yields of 5-8% annually, though this is down from pre-pandemic levels of 8-12%.
BGC and Makati attract premium tenants - expatriate executives, embassy staff, and international company employees - who pay ₱40,000-₱100,000 monthly for one-bedroom units. However, high purchase prices mean yields often fall below 5%, and competition from thousands of empty units keeps rents suppressed. Focus on buildings with exceptional amenities or unique features to stand out.
Ortigas and Quezon City offer better yields around 6-8% by attracting young professionals and BPO workers who pay ₱15,000-₱30,000 for studios and one-bedrooms. Properties near IT hubs, call centers, and universities maintain steady demand, especially those offering fast internet and 24/7 security.
Student housing near major universities (UP Diliman, Ateneo, La Salle) provides consistent 7-8% yields with lower vacancy rates. Students and their families prefer properties within walking distance of campus, and demand remains steady regardless of economic conditions. Consider properties that can be rented by the bed space for maximum returns.
What about short-term rentals - what are the rules and opportunities?
Foreigners can legally operate short-term rentals from their owned condo units, but must first check building regulations as many prohibit or restrict Airbnb-style rentals to maintain security and prevent disruption to long-term residents.
The best short-term rental locations include Makati and BGC for business travelers, Manila Bay and Ermita for tourists visiting historical sites, and areas near airports for transit passengers. Medical tourism creates demand near major hospitals like St. Luke's and Asian Hospital, with patients and families seeking monthly rentals during treatment periods.
Realistic income varies dramatically by season and location - a well-positioned one-bedroom in BGC might earn ₱3,000-₱5,000 per night with 60-70% occupancy, generating ₱60,000-₱100,000 monthly. However, competition is fierce with thousands of units listed, and you'll need professional photography, responsive management, and competitive pricing to succeed.
Operating costs include platform fees (3-5%), cleaning (₱500-₱1,000 per turnover), utilities, supplies, and potential management fees (20-25% if outsourced). Many buildings now require registration of short-term guests and charge additional fees, while some cities within Metro Manila are developing regulations that may restrict or tax short-term rentals more heavily in the future.
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.
Manila's property market in 2025 presents a unique window where patient buyers can secure significant discounts while renters enjoy the best rates in over a decade.
The key to success lies in choosing the right property type in the right location - avoid oversupplied CBD condos unless you find exceptional deals, and instead focus on emerging areas with infrastructure development and growing demand. Whether buying or renting, Manila offers diverse options for every budget and lifestyle, but success requires careful research, professional guidance, and realistic expectations about returns in this transitioning market.
Sources
- Manila Real Estate Forecasts - BambooRoutes
- Investing in Manila Real Estate Guide 2025 - Bed and Go Inc
- 2025 Philippine Real Estate Market Outlook - Lamudi
- PH Real Estate 2025 Growth Dynamics - Business Inquirer
- Manila Condo Market Imbalance Analysis - BusinessWorld
- Philippines Property Price History - Global Property Guide
- Metro Manila Land Prices Drop - Bilyonaryo
- Cost of Living in Manila - Numbeo
- Buying Property in the Philippines Guide - TransferGo
- Top Real Estate Brokers Manila - Clutch
-Philippines Real Estate Market Overview
-Davao City Real Estate Market Analysis
-CALABARZON Real Estate Market Trends
-Central Luzon Real Estate Market Guide
-Negros Island Real Estate Market Insights
-Panay Island Real Estate Market Report
-Mindoro Island Real Estate Market Overview