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
Why is Manila emerging as a prime destination for property investment in 2025? Is it the robust rental yields, the vibrant economic growth, or the affordability compared to other Asian markets? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Manila's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Manila’s location makes it a prime hub for international trade and business
Manila's location is a key gateway for international trade and business.
The Ninoy Aquino International Airport (NAIA) is bustling with activity, handling a high volume of international flights and cargo. Before the pandemic, it was already managing nearly 50 million passengers annually, despite being designed for 32 million. This highlights Manila's importance as a travel and trade hub.
Manila's strong connectivity to major Asian markets is another advantage. With ongoing airport expansion and major shipping routes passing through, Manila remains a vital hub for regional trade. This connectivity simplifies cross-border operations for businesses.
Export-oriented industries in Manila are thriving, underscoring its strategic role. The trade relationship between the U.S. and the Philippines is robust, with significant export and import volumes, showcasing Manila's facilitation of international trade.
Manila's strategic position is further emphasized by its role in the global supply chain. The city's infrastructure supports efficient movement of goods, making it a preferred location for businesses looking to expand in Asia.
With its strategic location and robust infrastructure, Manila is not just a city but a gateway to opportunities in the international market.
Sources: Census.gov, Statista, Foreign Policy
2) In Manila, you’ll find a more stable property market than in other Asian cities
Manila's real estate market is known for its steady growth in property prices, making it a stable choice for buyers.
In June 2024, property prices in Manila saw a 2.7% year-over-year increase, following a 6.1% rise in the previous quarter. This kind of consistent growth helps keep the market less volatile compared to other Asian cities.
One reason for this stability is the lower frequency of market crashes in Manila. Even during the 2024 slowdown in sales, the market showed resilience, thanks in part to government policies like tightened lending practices that reduced nonperforming loans.
Manila's real estate market also benefits from a balanced supply-demand ratio. In 2024, new project launches were cautious, with only half the volume of the previous year, preventing an oversupply and keeping the market stable.
Demand for residential and commercial spaces remains strong, as evidenced by the recovery of condominium sales to 85% of pre-pandemic levels by late 2022. This ongoing demand supports market stability.
Overall, Manila's real estate market is less volatile due to its consistent growth and balanced dynamics, making it an attractive option for property buyers.
Sources: Property Report, CEIC Data, Business Inquirer
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) In Manila, you’ll find diverse property options to suit any investor's needs
Manila's real estate market is incredibly diverse, offering a range of property types to suit various investor needs.
In bustling areas like Makati and Bonifacio Global City, there's a high demand for residential condominiums. These spots are magnets for professionals and families who want to be near work and amenities, making them prime choices for urban living.
Adding to the mix are the increasingly popular mixed-use developments. These projects blend residential, commercial, and retail spaces, offering a balanced lifestyle. Take the Manila Mixed-Use Development in Calle Arroceros, for instance, which features a retail mall and residential towers, creating a vibrant live-work-play-learn environment.
The luxury real estate segment is also on the rise, contributing to the market's variety. High-end condominiums and exclusive subdivisions, like Shangri-la Rise Makati, are designed for affluent buyers seeking premium living experiences.
On the other end of the spectrum, affordable housing projects are expanding in suburban areas. These developments are crucial for low- to middle-income families, offering more budget-friendly options and addressing housing needs.
Manila's real estate market is a tapestry of options, from luxury condos to affordable homes, each catering to different lifestyles and budgets.
Sources: Philippine Daily Mirror, Ascendix Tech, Sta. Lucia Land
4) Manila’s lifestyle-focused shopping centers boost property values nearby
Manila's shopping centers are evolving into vibrant lifestyle hubs, boosting nearby property values.
Take SM Supermalls, for example, which saw a 21.2% rise in daily foot traffic in early 2024, drawing over 4 million visitors. This surge shows that these centers are becoming more than just places to shop. People are flocking to them for a mix of experiences, from dining to entertainment, making the surrounding areas more appealing for potential homeowners.
Mixed-use projects like Ayala Center in Makati and Vertis North in Quezon City are also key players in this transformation. These developments offer a blend of living, working, and leisure spaces, reducing the need for long commutes. This convenience is a big draw, leading to a rise in property values as more people want to live close to such comprehensive amenities.
The retail market in Metro Manila is thriving, thanks to stable retail rents and a growing array of retail and entertainment options. New malls are popping up, and existing ones are expanding, which keeps the market robust. This growth is in line with the increasing disposable income of the middle class, who are eager to spend on lifestyle experiences, further fueling the demand for these lifestyle hubs.
As these shopping centers continue to evolve, they are not just places to buy things but are becoming integral parts of the community. This shift is making the areas around them more desirable, attracting both investors and homebuyers who see the value in being close to such dynamic environments.
Sources: Megaworld Lifestyle Malls Wins Big at Retail Asia Awards 2024, Manila Prime Retail Rents to Increase by Year-End, Mixed-Use Developments in the Philippines, Metro Manila Retail Market Thrives with Sustained Activity
5) With Manila's growing population, there's a rising need for more housing options
Manila's population is on the rise, with an estimated 14,942,000 people in 2024 and projections of 15,230,600 by 2025.
As the world's most densely populated city, Manila has over 42,857 people per square kilometer, and its urban area swells to 15 million during the day. This density underscores the pressing need for more housing to accommodate both residents and daily commuters.
The government is aware of the housing crunch, with a reported backlog of 6.5 million units, which could rise to 22 million by 2040. To tackle this, initiatives like the 4PH Program are in place, aiming to build 1 million housing units annually until 2028.
For those considering buying property in Manila, this growth means a bustling city with increasing demand for housing. The government's efforts to address the shortage could present opportunities for investment in new developments.
Living in Manila offers a vibrant urban experience, but the high population density means that space is at a premium. This makes the city's real estate market competitive, with potential for property value appreciation as demand continues to rise.
Sources: World Population Review, BusinessWorld Online, PopulationStat
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6) Manila’s BPO industry draws many professionals, ensuring a constant demand for housing
Manila is a bustling hub for business process outsourcing (BPO), drawing in professionals who need housing.
The BPO industry is a big deal in Manila, with 65% of leasing activity in Metro Manila in 2024 linked to it. This means more office spaces are being snapped up by BPO companies, which in turn attracts a steady stream of professionals looking for places to live. The city is buzzing with opportunities, making it a magnet for those in the industry.
Expectations are high, with the BPO sector projected to see a 7% revenue increase from 2023 to 2024. This isn't just about numbers; it's about more jobs and more people moving to Manila for work. As these companies grow, so does the need for housing, creating a vibrant real estate market.
In 2023, the BPO sector brought in a whopping $35.4 billion in revenue, and it's expected to hit nearly $40 billion by 2025. This kind of growth is a big deal for Manila's economy, driving more people to the city and boosting the demand for housing. The influx of professionals is reshaping the urban landscape, making it an exciting time for property buyers.
With the BPO industry thriving, Manila is not just a place to work but a place to live. The city's transformation is evident in the bustling neighborhoods and the ever-growing skyline. For those considering buying property, this means a dynamic market with plenty of opportunities.
Sources: Creathink Solutions, Outsource Accelerator, Unity Connect
7) Manila's booming tech industry attracts workers, increasing demand for housing
The tech industry in Manila is booming, and it's changing the real estate landscape.
In recent years, tech jobs in Manila have surged by 28%, drawing a wave of tech workers to the city. This influx is not just about numbers; it's reshaping neighborhoods and creating vibrant communities. Areas like Bonifacio Global City and Makati are becoming tech hubs, buzzing with new energy and opportunities.
The startup scene is also thriving, with valuations jumping from $3.5 billion to $6.4 billion in just a year. Success stories like GCash, which has reached unicorn status, are just the tip of the iceberg. The government is playing a big role too, offering tax breaks and innovation grants to keep the momentum going.
As more tech professionals move to Manila, the demand for housing in these tech-centric areas is skyrocketing. Urban living is becoming increasingly popular among tech workers, who are drawn to the convenience and lifestyle these neighborhoods offer. The ease of obtaining work permits is also making it easier for international talent to settle in.
Co-working spaces and tech hubs are popping up everywhere, reflecting the growing number of tech professionals. This trend is transforming the city, making it a hotspot for innovation and collaboration. If you're considering buying property, these areas are worth a look.
With the local tech industry on the rise, the demand for housing is only expected to grow. This makes it an exciting time for potential property buyers looking to invest in Manila's future.
Sources: The Future of Tech Jobs in Manila, Philippines: An Analysis, Inside Philippines's Thriving Tech Hub: Startups and Success Stories, Getting a Job in Tech in Philippines in 2025: The Complete Guide
8) The Build, Build, Build program is enhancing infrastructure, making properties easier to access
The Build, Build, Build program has revolutionized infrastructure in the Philippines.
With a hefty budget of $26 billion allocated for infrastructure by 2024, the government is making significant strides in developing new roads and public transport. This investment is about 5.7% of the country's GDP, showing a strong commitment to improving connectivity.
Take the Central Luzon Link Expressway, for example. This 30-kilometer expressway connects Tarlac City to Cabanatuan City, cutting down travel time and easing traffic. It's a game-changer for those commuting in and out of Metro Manila.
Another key project is the Luzon Spine Expressway, which enhances connectivity across Luzon. This not only saves time but also boosts local economies by facilitating the movement of goods and people.
Public transportation is also getting a facelift with expansions in the Mass Rapid Transit and Light Rail Transit systems. These improvements make it easier to reach business districts, which is a boon for residents and businesses alike.
As a result, property values near these new infrastructure projects have risen, attracting more investors. This surge in interest is also increasing foreign direct investment in real estate.
Sources: DBM - Build Build Build Program, International Trade Administration - Philippines Digital Economy, BSP - A Glimpse into the Philippines' Infrastructure Flagship Projects, Kelmer - Philippines 2024 Economic Transformation Through Infrastructure Development
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
10) With better public transport, more areas in Manila are becoming attractive places to live
Manila's public transportation has seen major improvements, making more areas appealing for living.
The Metro Rail Transit (MRT) and Light Rail Transit (LRT) systems are now bustling with activity, with the MRT alone serving 357,198 passengers daily in 2023. This surge in ridership shows that public transport is becoming a go-to choice for daily commutes, offering convenience and reliability.
Looking ahead, the Metro Manila Subway Project is a game-changer, expected to benefit 370,000 commuters by 2025. It will link key spots like Valenzuela City, Taguig City, and the Ninoy Aquino International Airport, making city travel a breeze. Plus, the North–South Commuter Railway is set to boost connectivity in the metro and beyond.
With the government pouring funds into efficient public transport and better cycling and pedestrian paths, people are ditching their cars. This shift is easing traffic jams and making areas with good transit access more attractive for living. As a result, neighborhoods near transit hubs are seeing a boom in residential and commercial development, pushing property values up.
Sources: Camella, Wikipedia, Railway Technology, Statista, Manila Bulletin
11) Urban renewal projects are making neighborhoods in the city more attractive
Manila is buzzing with urban renewal projects that are making its neighborhoods more attractive.
Thanks to the Marcos administration, infrastructure spending is set at 5 to 6% of GDP, with a hefty $26 billion earmarked for 2024. This investment is a game-changer, fueling the city's transformation.
Public-private partnerships, or PPPs, are also playing a big role. These collaborations combine public and private sector strengths to push forward urban renewal projects, making them more effective and efficient.
As these projects unfold, property values in redeveloped areas are climbing. In places like Bonifacio Global City and Makati Central Business District, real estate prices are on the rise, driven by luxury housing developments and a tight housing market.
For those eyeing property in Manila, these changes mean more than just new buildings. Neighborhoods are becoming more vibrant and livable, with improved infrastructure and amenities.
Investors and homebuyers are taking note, as the city's landscape evolves with these ongoing projects, promising a bright future for Manila's real estate market.
Sources: International Trade Administration, Inquirer Business, Inquirer Business
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12) With expanding healthcare, Manila is a top choice for retirees seeking easy access to medical care
Manila is becoming a top choice for retirees because of its expanding healthcare facilities.
In recent years, the city has seen a boom in hospitals and clinics, like the Manila Doctors Hospital, which now offers international healthcare services. This means Manila is ready to serve both locals and foreigners, showing its growing ability to provide comprehensive medical care.
Investments in healthcare are on the rise, with the Medical Devices market in the Philippines set to grow by 9.14% from 2024 to 2029. This surge is fueled by the need for cutting-edge medical devices, reflecting a strong commitment to enhancing healthcare facilities.
The government is also stepping up, with a $450 million loan from the Asian Development Bank to boost healthcare reform through the Build Universal Health Care Program. This initiative is set to further improve healthcare services in Manila.
International healthcare providers are making their mark too. Organizations like International SOS are setting up shop in Manila, offering medical and security assistance to global companies and agencies, which highlights the city's growing reputation as a healthcare hub.
Medical tourism is on the rise, thanks to the growing use of telemedicine and remote patient monitoring devices. This trend is making Manila even more appealing to retirees looking for quality healthcare.
Sources: Manila Doctors Hospital, Statista, International SOS
13) Manila's universities and colleges mean there's always a need for student housing
The city's universities and colleges are always buzzing with students, creating a steady demand for nearby housing.
Take the University of the Philippines, for instance, which had over 17,000 undergraduates enrolled for the 2024-2025 academic year. With so many students, it's no wonder there's a scramble for housing close to campus. Everyone wants to be near their classes, right?
And it's not just local students. The Philippines has become a hotspot for international students, with a 52.7% jump in international enrollments in 2022. Many of these students hail from India and China, and they prefer living near their universities for the convenience and safety it offers.
Looking ahead, the student housing market is on the rise. By 2031, there are plans for 734,000 more beds to accommodate the growing student population. This boom is fueled by increasing enrollment rates and the lure of job opportunities, ensuring that the demand for student housing isn't going away anytime soon.
Sources: University of the Philippines Enrollment Statistics, Inbound Student Mobility, Student Housing Market Analysis
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.