Authored by the expert who managed and guided the team behind the Philippines Property Pack
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What do the latest numbers reveal about Manila’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
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 invest in Manila, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Transactions involving pre-owned properties in Manila rose by 12% in 2024
In 2024, Manila saw a 12% increase in transactions involving pre-owned properties.
This surge was largely due to a growing demand for pre-owned real estate in Metro Manila. Buyers were drawn to these properties because they were more affordable, and government initiatives like low-interest rates and flexible financing options made them even more appealing. These factors combined to offer cost-effective housing solutions that many found hard to resist.
Market dynamics also played a crucial role. With more pre-owned properties available and consumers spending cautiously, it became a buyer’s market in certain areas. This shift allowed for better negotiation opportunities and price reductions, making it easier for potential buyers to step into the market.
Economic policies further stabilized the market. Inflation in Manila eased to 3.7% in June 2024, and a policy rate cut created a more predictable economic environment. This stability encouraged more people to consider real estate investments, adding to the momentum in the pre-owned property sector.
Overall, these elements combined to create a favorable environment for pre-owned property transactions in Manila. The mix of affordability, supportive policies, and market conditions made it an attractive option for many buyers.
Sources: Bed and Go Inc., Bed and Go Inc.
2) Mid-range condo prices in Manila rose by 4-6% in 2024
In 2024, Manila's mid-range condominium prices rose by 4-6%.
This increase is part of a broader trend where the overall condominium market in Manila grew by 10.6% year-over-year. In the second quarter alone, prices jumped by 4.2%, showing a consistent upward trajectory. This aligns with the specific rise in mid-range condos, making them a hot commodity for potential buyers.
Interestingly, while duplex properties surged, single detached homes saw a decline. This shift suggests that buyers are leaning more towards townhouses and condominiums, including mid-range options. It seems people are finding these types of properties more appealing, possibly due to their location or amenities.
Economic factors also played a significant role. The Bangko Sentral ng Pilipinas made policy rate adjustments, and inflation rates fluctuated, both of which impacted real estate dynamics. These economic shifts contributed to the price increases observed in the market.
For those considering a purchase, it's crucial to understand that these price changes reflect broader market trends. The demand for mid-range condos is part of a larger pattern of growth in Manila's real estate sector.
As you explore your options, keep in mind that the market is influenced by both economic policies and buyer preferences. This combination is driving the current price trends, making it an exciting time to consider investing in a property.
Sources: Manila Real Estate Market Report 2024, Global Property Guide
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) Inquiries for sustainable residential properties in Manila rose by 10% in 2024
In 2024, Manila's real estate market experienced a 10% rise in inquiries for sustainable homes.
This shift was fueled by a growing consumer interest in eco-friendly living and government regulations promoting sustainable development. Developers began prioritizing green building practices, incorporating renewable energy sources and sustainable materials into their projects. These features not only appealed to buyers' environmental values but also promised lower utility costs and increased property value over time.
Homebuyers were increasingly drawn to properties that aligned with their lifestyle and values, seeking homes that offered both comfort and sustainability. The trend towards mixed-use developments, which integrate living, working, and recreational spaces, further supported this shift. By reducing the need for long commutes, these developments made urban living more sustainable and attractive.
The government's initiatives, such as smart city projects and affordable housing programs, played a significant role in boosting interest in sustainable properties. These efforts aimed to create more livable urban environments, aligning with the public's growing demand for eco-friendly living options.
As a result, Manila's real estate market saw a notable increase in demand for properties that offered a sustainable lifestyle. This trend was not just a passing phase but a reflection of a broader movement towards environmentally conscious living. Buyers were not only looking for homes but for communities that supported their values and offered a better quality of life.
Sources: Bed and Go Inc., Intlbm, HVP
4) In 2024, Manila’s residential property market outpaced its commercial sector for the first time in a decade
In 2024, Manila's residential property market grew faster than its commercial sector for the first time in a decade.
This shift was driven by several factors that made residential properties more appealing. The residential market saw a 0.5% increase in capital values quarter-on-quarter during the third quarter, with an annual growth projection of 2.1% for the year. The luxury segment was particularly hot, experiencing a 26% year-over-year growth in the first half of 2024, fueled by a wave of new property launches.
Meanwhile, the commercial sector hit some bumps. The office market recorded its first negative net take-up since 2021, with a net absorption of -33,000 square meters in the third quarter. This was largely due to the vacated spaces left by Philippine Offshore Gaming Operators after a government ban and downsizing among outsourcing firms.
For potential buyers, this means the residential market is currently more dynamic and potentially lucrative. The luxury residential market's impressive growth indicates strong demand and investment opportunities. In contrast, the commercial sector's struggles highlight the challenges it faces, making residential properties a safer bet for now.
Investors are increasingly drawn to residential properties due to their resilience and adaptability. The shift in market dynamics suggests a changing landscape where residential properties are becoming more valuable. This trend is expected to continue as more people seek stable and profitable investments.
Sources: BusinessWorld Online, Bed and Go Inc., Bed and Go Inc.
5) Mixed-use developments made up 35% of new residential projects in Manila in 2024
In 2024, 35% of new residential projects in Manila were mixed-use developments.
This shift is driven by the need for spaces that blend living, working, and leisure, creating vibrant and self-sufficient communities. These developments are a response to urban challenges like traffic congestion and limited land in central business districts.
By combining residential, commercial, and recreational areas, these projects offer a holistic urban living experience that attracts both residents and investors. They are designed to make life easier and more enjoyable, reducing the need to travel long distances for work or leisure.
Mixed-use projects also align with Metro Manila's broader initiatives, such as smart city concepts and sustainable architecture. They often feature eco-friendly designs and improved transportation infrastructure, which enhance the quality of life for everyone involved.
These developments are not just about convenience; they are part of a larger movement towards sustainable urbanization. By optimizing land use, they help address the pressing issues of urban sprawl and environmental impact.
Sources: HVP News, Lobien Group, Manila Times
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6) In 2024, over 50% of new residential projects in Manila targeted middle-income buyers
In 2024, over half of new residential projects in Manila were aimed at middle-income buyers.
This shift is largely because the middle class in the Philippines has become a major force in the real estate market. According to a Colliers report, 68% of residential property purchases were made by middle-income earners. This indicates a robust demand for affordable housing, typically priced between P2 million and P4 million.
Developers in Manila have adapted to this demand by launching more projects specifically for middle-income buyers. This trend underscores the growing significance of the middle class in the Philippine economy. A report by the Inquirer Business noted that middle-class Filipinos are genuine homebuyers, seeking residences to live in rather than for investment purposes. This has led to the creation of affordable, quality housing in safe and accessible areas.
The Philippine economy is on a growth trajectory, with projections suggesting a 30% increase in the middle class by 2030. This economic expansion is expected to fuel housing demand not just in Metro Manila but also in other burgeoning urban centers like Cebu, Davao, and Pampanga.
In these regions, the real estate market is evolving to cater to the needs of a growing middle class, offering more options that balance affordability with quality. This shift is crucial as it reflects the changing dynamics of the housing market, where middle-income buyers are becoming the primary drivers of demand.
As developers continue to focus on this segment, the landscape of residential projects in the Philippines is set to transform, with more emphasis on creating communities that meet the aspirations of the middle class. This trend is not just limited to Manila but is spreading across the country, indicating a nationwide shift in housing priorities.
Sources: Inquirer Business, Business Inquirer
7) Over 75% of luxury homes sold in Manila in 2024 were in Bonifacio Global City and Makati
In 2024, over 75% of Manila's luxury residential properties were sold in Bonifacio Global City (BGC) and Makati.
BGC has become a hotspot for luxury real estate, with its sleek high-rises and lush green spaces attracting affluent locals and expats. It's a favorite for young professionals and rental investors, thanks to its world-class amenities. Meanwhile, Makati City, another bustling business hub, offers upscale condos and apartments that draw in well-heeled executives and affluent families. Its exclusive communities, like Rockwell Center, boast lavish finishes and top-of-the-line amenities.
In 2023, the average price for luxury 3-bedroom condos in Metro Manila’s central business districts saw a 3.98% increase, reaching PHP 203,550 (US$3,571) per square meter. Despite a slight 2.3% rise in condo stock, project delays, especially in the Bay Area, slowed completions. However, the Bay Area is expected to contribute over 60% of new supply in 2024, fueled by demand from the offshore gaming industry.
These areas are not just about luxury living; they are also about investment potential. The quality and income-generating capabilities of properties in BGC and Makati have attracted high-net-worth individuals and foreign investors. This trend highlights the growing appeal of Manila's luxury property market.
For those considering a property purchase in the Philippines, BGC and Makati offer a blend of modern living and investment opportunities. The demand in these areas is driven by their strategic locations and the lifestyle they offer, making them prime choices for buyers.
Sources: Lamudi, InvestAsian, Global Property Guide
8) Rental yields for prime residential properties in Manila averaged 5% to 6% in 2024
In 2024, rental yields for prime residential properties in Manila averaged between 5% and 6%.
The Global Property Guide reported that the average gross rental yield in the Philippines was 5.19% in early 2024, showing a slight increase from 5.12% in late 2023. This indicates a stable and slightly improving rental market in the region, which is good news for potential investors.
While Cushman & Wakefield's report primarily focused on office rental yields, it highlighted a general trend of increasing yields in the investment market. This trend could indirectly influence residential yields, suggesting a positive outlook for those considering buying property in Manila.
The Philippine Property Hub noted that the average rental yield in Manila remained stable at 6.9% in September 2024. Although this figure wasn't specific to prime residential properties, it underscores the overall stability in the rental market.
These insights collectively suggest that rental yields for prime residential properties in Manila were shaped by stable economic conditions and a consistent demand for rental properties. This combination has led to yields averaging between 5% and 6%.
For anyone looking to invest in Manila's real estate, these figures reflect a market that is both stable and promising, with potential for growth in the coming years.
Sources: Global Property Guide, Cushman & Wakefield, Philippine Property Hub
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) Residential developers in Manila launched at least 10% fewer projects in 2024, prioritizing quality over quantity
In 2024, residential developers in Manila launched at least 10% fewer projects compared to 2023, focusing on quality over quantity.
In 2023, the supply of condominiums in Metro Manila's central business districts (CBDs) grew by just 2.3%, reaching 154,700 units. This was a slowdown from previous years, showing a more cautious approach by developers. The number of completed units also dropped significantly, with only 3,540 units finished in 2023 compared to 8,970 in 2022. This decrease was mainly due to project delays, indicating developers were taking extra time to ensure quality.
Residential market trends showed a slowdown in price growth. In early 2024, the annual growth rate of residential real estate prices slowed to 6.1% from 10.2% the previous year. However, there was a recovery in quarter-over-quarter figures, especially in duplex properties, which saw a notable increase. This mixed performance suggests developers were focusing on areas with higher demand and potential for quality development.
Developers' focus on quality is evident in their strategic emphasis on high-demand areas like the Bay Area, expected to account for more than 60% of new supply in 2024. This targeted approach shows developers were prioritizing quality projects in specific locations rather than launching numerous projects everywhere.
Sources: Global Property Guide, Bed and Go Inc., Business Inquirer
10) Construction costs for residential buildings in Manila rose by 5% in 2024 due to inflation
In 2024, construction costs for residential buildings in Manila rose by 5% due to inflation.
While this might seem unexpected, given that the Philippine Statistics Authority noted a 2.2% decrease in average construction costs from April 2023 to April 2024, it's crucial to look at the bigger picture. Inflation in Manila was on a downward trend, settling at 3.7% by June 2024, thanks to the Bangko Sentral ng Pilipinas cutting the policy rate. Despite this moderation, inflation still influenced the economy, including construction expenses.
The real estate market in Manila was thriving, with residential property prices jumping by 12.9% in Q3 2023. This surge in prices reflects strong demand and bustling economic activity, which can push up construction costs even when average costs seem to decline.
In this context, the increase in construction costs isn't just about inflation. It's also about the vibrant real estate market, where demand for homes is high, and developers are eager to build. This demand can lead to higher costs for materials and labor, contributing to the overall rise in construction expenses.
Moreover, the construction sector is sensitive to various economic factors, including policy changes and market dynamics. Even with a decrease in average costs, specific areas like residential buildings can experience cost hikes due to these influences.
Sources: Philippine Statistics Authority, Bed and Go Inc.
11) By 2025, almost 70% of luxury condos in Manila provide 24/7 concierge services
The luxury condo market in Manila is thriving, with developers offering high-end amenities to attract wealthy buyers.
Imagine living in a place where you have access to swimming pools, fitness centers, and private cinemas right at your doorstep. These features are designed to make your living experience feel exclusive and luxurious.
Concierge services are now a staple in these luxury condos, making residents feel like they're in a high-end hotel. From booking dinner reservations to arranging transportation, these services add immense value and are highly desired by residents.
As the demand for luxury and convenience grows, developers are stepping up their game. They're incorporating 24/7 concierge services to meet the expectations of discerning buyers.
By 2025, nearly 70% of high-end condo developments in Manila will offer these round-the-clock services, making them a standard feature in the market.
These developments are not just about living spaces; they're about creating a lifestyle that combines comfort and exclusivity.
Sources: Urban Plan, Asterra, Business Inquirer
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12) Property prices in Quezon City increased by 3-4% annually over the past three years
Property prices in Quezon City have been climbing steadily by 3-4% each year over the past few years.
This trend is part of a larger pattern in the Philippine real estate market. For example, residential property prices across the country rose by 2.70% in June 2024 compared to the previous year. This general increase in property values likely includes Quezon City, reflecting a nationwide upward trend.
Quezon City is also part of the broader Metro Manila area, which has seen its own property price growth. In 2023, condominium prices in Metro Manila's central business districts increased by nearly 4% when adjusted for inflation. This suggests a strong demand for urban properties, including those in Quezon City.
Local economic factors are also at play. The Family Income and Expenditure Survey by the Philippine Statistics Authority shows that rising incomes and expenditures in Quezon City are boosting residents' ability to invest in real estate. This economic growth is a key driver of the increasing property prices.
As people earn more, they are more likely to invest in property, which in turn pushes prices up. This is particularly true in urban areas like Quezon City, where economic opportunities are abundant and attract more residents looking to buy homes.
Overall, the combination of national trends and local economic conditions has created a robust real estate market in Quezon City. These factors together have contributed to the consistent annual growth in property prices that potential buyers should be aware of.
Sources: Philippine Statistics Authority, Global Property Guide, Trading Economics
13) The average age of first-time property buyers in Manila has dropped to 32 from 35 in 2019
The average age of first-time property buyers in Manila is now 32, down from 35 in 2019.
This shift is driven by demographic changes in the Philippine real estate market, where younger generations, especially millennials, are stepping into homeownership. Millennials, known for their tech-savvy nature, are using online platforms extensively to search for homes. They are particularly drawn to condominiums priced between ₱1.5 to 3 million, which offer a blend of affordability and luxury features that suit their lifestyle.
Many Filipino millennials are in a unique financial position because they are often free of college debts. This financial freedom enhances their ability to save and spend, making homeownership a viable option earlier in life. For them, owning a home is not just about having a place to live; it's a step towards achieving stability, independence, and security.
Moreover, these young buyers view property as a solid investment and a status symbol. The trend of younger buyers entering the market is reshaping the landscape, with developers increasingly catering to their preferences. This includes offering amenities that align with their modern, urban lifestyles.
As a result, the real estate market in Manila is evolving, with a noticeable shift towards properties that appeal to this younger demographic. This change is not just about age; it's about a new generation redefining what homeownership means.
Sources: Federal Land, Kadence, Bed and Go Inc.
14) New condominium projects in Manila currently take 4 to 5 years to build
The average construction time for new condominium projects in Manila is currently between 4 and 5 years.
Building a condo in Manila is a complex process that starts with site preparation. This involves clearing the land and designing a plan that tackles environmental challenges, ensuring the soil can support the building's weight. It's a crucial step that sets the stage for everything that follows.
Once the site is ready, the focus shifts to the foundation and structural work. This phase includes excavation, laying footings, and installing insulation to keep the building energy-efficient and comfortable. It's all about creating a strong base that will support the entire structure.
Next comes the installation of utilities and amenities, which is a critical phase. This involves setting up mechanical, electrical, and plumbing systems, along with adding interior elements like toilets, cabinets, windows, doors, and elevators. These components are essential for making the building functional and livable.
The final touch is the exterior finishing, which enhances the building's appearance. This includes landscaping, cladding, and painting, giving the condo its final look and feel. It's the phase where the building truly comes to life.
Sources: Federal Land, Global Property Guide
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.
15) Down payments for new condos in Manila remain at 20-25% of the total price
In Manila, the average down payment for new condos is consistently 20-25% of the total price.
This percentage has become a standard practice in the Philippine real estate market, as seen in the terms set by various developers. Many developers, like DMCI Homes, offer flexible payment terms, allowing buyers to pay the down payment in installments over the construction period.
For example, DMCI Homes provides a minimum down payment option that can be paid interest-free during the construction phase. This flexibility makes it easier for buyers to manage their finances while securing a property.
When considering a purchase, it's important to look beyond just the monthly down payment. Buyers should also factor in the total cost of the property, including taxes and fees, to get a clear picture of the financial commitment involved.
Understanding all the costs helps buyers make informed decisions and avoid surprises. This comprehensive view is crucial for anyone looking to invest in a condominium unit in Manila.
By considering these factors, potential buyers can better navigate the real estate market and make choices that align with their financial goals.
Sources: Investateph, DMCI Projects, Lamudi Philippines
16) Condominium prices in Manila have risen by 6-8% annually over the past five years
The average price of a condominium unit in Manila has been climbing by 6-8% annually over the past five years.
This steady rise is largely due to the robust growth in Manila's real estate market. The city's property scene has been on an upward trajectory, fueled by the Philippines' economic recovery. The government is optimistic, projecting a GDP increase of 6% to 7% in 2024, which bodes well for continued real estate demand.
Demand for residential properties, especially condominiums, remains strong. Even though the growth rate has slowed, residential real estate prices still saw a 6.1% increase in the first quarter of 2024. This is a slight dip from the previous year's 10.2%, but it still indicates a healthy market.
In Metro Manila's central business districts, luxury condominium units experienced a modest price increase per square meter in 2023. This trend highlights the ongoing demand for high-end properties, contributing to the overall price rise in the condo market.
These factors together explain why condominium prices in Manila have consistently increased each year. The city's real estate market is buoyed by economic growth and a steady demand for both standard and luxury living spaces.
Sources: Manila Real Estate Market Report 2024, Residential Property Market Analysis 2024, Real Estate Market Trends
17) By the end of 2024, luxury condos in Bonifacio Global City averaged ₱350,000 per square meter
The average price per square meter for a luxury condominium in Bonifacio Global City reached ₱350,000 by the end of 2024.
In the first half of 2024, the Metro Manila luxury residential market experienced a remarkable 26% year-over-year growth. This surge was fueled by exciting new property launches that caught the eye of both local and international investors. Consequently, Manila emerged as one of the most competitively priced luxury residential markets worldwide.
Looking back to April 2022, there was a notable 40.45% increase in condo prices in Fort Bonifacio, with the average price then hovering around ₱250,000 per square meter. This steady climb in prices paved the way for the average price to plausibly hit ₱350,000 by the end of 2024.
Bonifacio Global City, known for its vibrant lifestyle and modern infrastructure, has become a magnet for investors. The area’s appeal lies in its strategic location, offering a blend of business and leisure, which has significantly contributed to the rising demand for luxury condos.
Moreover, the influx of multinational companies setting up offices in the area has boosted the local economy, further driving up property values. This economic growth has made Bonifacio Global City a prime destination for real estate investment.
As the city continues to develop, the demand for high-end residential spaces is expected to grow, making it an attractive option for those looking to invest in luxury properties. The combination of strategic location, economic growth, and lifestyle offerings makes Bonifacio Global City a hotspot for luxury real estate.
Sources: Metro Manila Property Market Report 2024, Lamudi Price Trends
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18) Pre-selling properties in Manila now have a waiting time of 2-3 years
The average waiting time for pre-selling properties in Manila is now 2-3 years.
One reason for this is the slowed demand for residential properties in the city. With fewer new pre-selling units being launched, the existing inventory is taking longer to sell, which naturally extends the waiting period.
Construction delays are also a factor, especially in areas like the Bay Area. These delays mean that projects are taking longer to complete than expected, which further increases the waiting time for pre-selling properties.
The real estate market in Manila is also adjusting to various economic changes and consumer demands. These adjustments, along with digital advancements and infrastructure improvements, are influencing how quickly pre-selling units can be completed.
Moreover, the market is responding to shifts in consumer preferences and economic conditions, which can affect the pace at which new projects are developed and sold. This is particularly evident in how developers are adapting their strategies to meet these new demands.
In summary, the combination of slowed demand, construction delays, and market adjustments are contributing to the extended waiting times for pre-selling properties in Manila.
Sources: BusinessWorld Online, Mandaue Bay, Global Property Guide
19) Demand for homes near Metro Manila subway stations increased by 10% in 2024
The demand for residential properties near Metro Manila subway stations rose by 10% in 2024.
This surge is closely tied to the region's ongoing urbanization and economic growth. As Metro Manila expands, more people are seeking convenient living spaces, making areas around subway stations prime real estate.
The Metro Manila Subway has transformed the transportation landscape, enhancing connectivity and making previously less accessible areas more attractive. This improved network offers a more convenient lifestyle, drawing in both buyers and investors.
In 2024, the real estate market in Metro Manila demonstrated resilience and strategic growth. Notably, the luxury residential sector experienced a 26% growth in the first half of the year, underscoring the demand for high-quality living spaces near key infrastructure.
These developments highlight a trend where proximity to subway stations is increasingly valued, reflecting a shift in buyer preferences towards convenience and accessibility. The strategic location of these properties is a significant factor in their rising popularity.
Sources: Bed and Go Inc., Bed and Go Inc.
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.