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
What is happening in Manila’s real estate market? Are prices on the rise or decline? Is Makati still a prime location for foreign investors? How are government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Metro Manila and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Manila real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Luxury property prices in central business districts will keep rising due to limited supply and strong demand
Luxury property prices in Manila's central business districts are climbing, and this trend is set to continue.
One big reason for this is the limited land available for new developments. In 2023, the total number of condos in Metro Manila’s CBDs grew by just 2.3%, reaching 154,700 units. But here's the kicker: new completions took a nosedive, dropping from 8,970 units the year before to just 3,540 units. This was mainly due to project delays, making the existing properties even more valuable.
Another driving force behind the price surge is the rising number of high-net-worth individuals in the Philippines. These wealthy folks, along with foreign investors, are flocking to luxury properties. Why? Because these homes offer top-notch quality and details, plus they have great potential for generating income. This demand is pushing prices even higher.
Economic growth is also playing a part. The Philippine economy grew by 5.7% in the first quarter of 2024, slightly up from 5.6% in the previous quarter. This strong performance is boosting investor confidence, leading to more investments in real estate. Investors are feeling optimistic, and they're putting their money into properties, which is driving up prices.
Government infrastructure projects are making central areas more attractive. New transportation projects and road expansions are improving connectivity in and around Manila. This enhanced accessibility is making these areas more appealing to buyers, which in turn is pushing property values higher.
Sources: Global Property Guide, Lamudi Journal, Luxury Homes
2) Manila’s property prices will stabilize as the market adapts to post-pandemic conditions
In Manila, residential property prices are stabilizing as the market adapts to post-pandemic realities.
In 2023, the average price for a luxury 3-bedroom condo in Metro Manila's business hubs increased by just 3.98%, and when you factor in inflation, prices stayed pretty much the same. This trend carried on into late 2023, showing a slowdown in property price growth, which hints at a market finding its footing.
There's also been a boost in the number of available homes, thanks to the completion of projects that were delayed, like the Metro Rail Transit (MRT) Line 7. This influx of new units is expected to help keep prices steady. Plus, the rise in luxury developments, fueled by local wealth and demand from affluent buyers, is adding to the supply.
Experts in real estate are seeing these changes too. Colliers International predicts that while residential rents will keep rising, it will be at a slower rate due to high vacancy rates and new units coming in. This suggests that the market is gradually balancing itself out.
Sources: Global Property Guide, Santos Knight Frank, Manila Standard, BusinessWorld Online
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) High-rise condos will become more popular than traditional houses due to limited urban space
In Metro Manila, high-rise condominiums are becoming the go-to choice for urban living.
In 2023, the city saw a boom in the residential condo market, with 40,555 units sold, marking a significant recovery. This momentum carried into 2024, with 23,400 units in pre-selling stages in central business districts, showing a clear demand for high-rise living.
The shift towards condos is largely driven by the rising cost of land in urban areas. In 2023, the total condo stock in Metro Manila's CBDs increased by 2.3%, a direct result of these high land prices. As land becomes more expensive, high-rise buildings offer a more cost-effective solution than traditional houses.
Urban planning reports highlight the limited space for new traditional houses in Metro Manila. With land prices soaring, high-rise living is not just practical but necessary. Consumer surveys also reveal a preference for condos due to their amenities and prime locations.
Condominiums offer attractive amenities like fitness centers and content creation rooms, which are a big draw for high-end buyers. These features make condo living appealing, especially in bustling urban centers where space is at a premium.
Sources: Manila Bulletin, Global Property Guide, CondoControl
4) New tax incentives for green buildings will boost eco-friendly residential developments
In 2023, Mandaue City introduced a Green Building Ordinance that offers tax discounts for buildings certified under the BERDE rating system.
These new tax incentives are making eco-friendly construction more appealing by offering real property tax discounts ranging from 5% to 25% based on the level of certification achieved. This means developers can save money while contributing to a greener environment.
There's a noticeable shift towards sustainable building practices, with 61% of new developments in Metro Manila projected to be green-certified by 2025. This trend is gaining momentum, supported by a steady growth rate of certified green buildings in the Philippines.
People are showing a strong preference for green spaces, with 72% of Filipino occupiers interested in working in eco-friendly environments. This interest is also evident in the residential market, where homebuyers are leaning towards low-density, green spaces for their next home.
The combination of tax benefits and consumer demand is creating a strong incentive for developers to focus on eco-friendly projects. This is not just a trend but a growing movement towards sustainable living.
With these incentives, developers are finding it easier to justify the initial costs of green construction, knowing that the financial benefits and consumer interest are on their side.
Sources: SunStar, Inquirer, Daily Tribune
5) Manila will attract more foreign retirees due to its affordable living costs and healthcare
Manila is becoming a hotspot for foreign retirees, thanks to its affordable cost of living and healthcare.
Living in Manila is a bargain compared to major U.S. cities. Imagine paying nearly 78% less in rent than you would back home. Even when you add in other expenses, consumer prices with rent are about 59% lower. This means you can enjoy a comfortable lifestyle without breaking the bank.
Healthcare is another big draw. While Medicare isn't accepted here, healthcare costs are generally more affordable than in the U.S. PhilHealth, a government-owned corporation, offers affordable health insurance for both locals and foreigners, making healthcare accessible and cost-effective. Plus, many private hospitals and clinics in Manila cater specifically to foreign retirees, ensuring you get quality care.
The expat community in Manila is thriving, with an estimated 200,000 U.S. expats and many more from other countries. This creates a vibrant and welcoming environment for retirees. The government sweetens the deal with incentives like the Special Resident Retiree’s Visa (SRRV), offering flexibility and benefits for foreign retirees.
Sources: The Filipino Chronicle, Philippine Traveler, Taxes for Expats
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6) Demand for mid-range residential properties will rise as the middle class expands
The growing middle class in Manila is driving up demand for mid-range residential properties.
With more Filipinos moving into the middle-income bracket, rising income levels are a key factor. Back in 1991, only 28.5% of Filipinos were considered middle-income, but by 2021, that number had jumped to 39.8%. This means more people now have extra cash to spend on better housing options.
Looking ahead to 2024, it's expected that 1.5 million households will earn around $25,000 annually. This bump in income isn't just for buying gadgets; it's also pushing people to seek out mid-range homes. These properties strike a nice balance between being affordable and offering good amenities, making them attractive to those looking to upgrade their living situation.
Financing is also becoming more accessible, which is a big deal. The Philippine government is actively promoting affordable housing, leading to more financing options for mid-range properties. This makes it easier for the middle class to buy homes, further fueling demand.
As more people earn higher incomes, they naturally want to improve their living conditions. Mid-range properties offer a sweet spot—they're affordable yet come with decent amenities, making them a popular choice for those looking to upgrade.
Sources: Inquirer, PIDS, Trade.gov
7) Co-living spaces in Makati will draw young professionals looking for affordable and flexible living options
Co-living spaces in Makati are drawing in young professionals who want affordable and flexible living options.
In recent years, the high cost of living in the Philippines has made traditional apartments out of reach for many. Co-living spaces have stepped in as a budget-friendly alternative, especially appealing to those eager to live in bustling urban areas like Makati.
Makati is seeing a wave of young professionals moving in for work, which is boosting the demand for flexible living setups. Co-living spaces, with their shared amenities and managed services, are perfectly suited to meet this need. As remote work becomes more common, people are increasingly looking for flexible living arrangements.
Surveys highlight a strong preference among millennials and Gen Z for flexible, managed living spaces. For example, a Housr survey found that over 60% of respondents want fully-managed spaces with all necessary amenities. Another survey by JLL showed that 90% of millennials in co-living spaces are satisfied and plan to continue living in such setups.
These trends suggest that co-living spaces are not just a passing fad but a growing preference among young professionals. The convenience and community aspects of co-living make it an attractive option for those who value flexibility and affordability.
Sources: Housr Survey, MyTown Co-Living, The Grid Co-Living
8) Urbanization will boost demand for properties in well-planned, mixed-use developments
Urbanization is driving up demand for properties in well-planned, mixed-use developments.
In bustling cities like Manila, where the population is expected to hit 14,942,000 by 2024, finding efficient and convenient living spaces is becoming crucial. This surge is part of a broader trend, with the urban population in the Philippines growing by 2.1713% in 2023. People are flocking to cities, drawn by the promise of better job opportunities and a vibrant lifestyle.
Manila stands out as a major employment hub, attracting a steady stream of migrants. This influx naturally boosts the demand for both residential and commercial spaces in mixed-use developments. These developments are popular because they offer the convenience of living close to work, cutting down on long commutes and improving quality of life.
Government initiatives are also making a difference. Programs like Build Better More are investing in infrastructure and urban projects, which support the growth of mixed-use developments. This not only enhances physical and digital connectivity but also makes urban living more appealing and sustainable.
For those considering a property investment, these mixed-use developments are a smart choice. They cater to the growing urban population's needs, offering a blend of residential, commercial, and recreational spaces. This setup is perfect for those who want everything within arm's reach.
Sources: World Population Review, Trade.gov, Tolj Commercial, Trading Economics
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) Remote work trends will boost demand for properties with home office spaces
Remote work is becoming a big deal, especially in places like Manila.
By 2025, 22% of full-time employees worldwide are expected to work entirely from home, and the Philippines is a key player in this shift. In Metro Manila, office vacancy rates are climbing, projected to hit 19.6% by the end of 2024, which shows a clear move towards remote and hybrid work setups.
People are loving the flexibility of working from home. A 2023 survey by FlexJobs found that 58% of workers want a fully-remote setup, while 39% are into the hybrid model. This trend is making folks look for homes with dedicated office spaces to fit their work-from-home needs.
In Manila, real estate listings are now highlighting home office features, which means buyers are actively searching for properties that support remote work. The demand for home office furniture is also on the rise, with online stores in Manila offering custom-made solutions for home offices.
As more people work from home, the need for properties with home office spaces is growing. This trend is evident in the increasing popularity of online furniture stores in Manila, which cater to the specific needs of remote workers.
With the shift towards remote work, the real estate market in Manila is adapting to meet the demands of buyers looking for homes that can accommodate their work needs. This change is reshaping how people think about their living spaces.
Sources: Outsource Accelerator, BusinessWorld Online, Manila Office Furniture Den, TypeScouts
12) New MRT lines will raise property values in areas that were previously less accessible
The new MRT lines in Manila are set to boost property values in areas that were once hard to reach.
When public transport improves, property values usually go up. Properties near MRT stations often see a price premium, with residential values rising by about 5% and commercial ones by 30%. This isn't just theory; it's backed by historical data.
Take Manila's existing MRT lines as an example. Residential parcel values increased by $154 per m² more, and commercial ones by $545 per m² more compared to areas farther from MRT-3 stations. This isn't just a Manila thing; Bangkok has seen similar trends, with land values rising as transit access improves.
Real estate experts are predicting growth near new MRT stations. Colliers Philippines points out that infrastructure development outside Metro Manila will drive demand for homes. The government's focus on economic growth is expected to boost investor confidence, leading to more real estate investments near these new lines.
Homebuyers are increasingly looking for properties near public transport hubs. As cities grow and populations rise, the demand for housing near MRT lines is expected to increase. Developers are already buying up land in these areas, anticipating the boom.
Sources: ADB, Property Report PH, Business World Online
13) Caloocan will see more affordable housing projects with the government's urban development push
Caloocan is on the brink of a housing boom thanks to a hefty government push for urban development.
With a whopping P10.7 billion earmarked for 2025, the government is all in on transforming the cityscape. This budget is not just numbers on paper; it's a real game-changer for housing projects that are set to reshape Caloocan. The city is becoming a focal point for affordable housing, driven by this substantial financial backing.
Metro Manila's need for affordable homes is skyrocketing, and Caloocan is right in the mix. The construction industry is riding a wave, having grown by 8.5% in 2023, and it's not slowing down. With a projected annual growth of 7% from 2025 to 2027, the focus is clear: build more homes. This surge is fueled by the government's commitment to infrastructure and housing, making it a top priority to meet the growing demand.
Caloocan's local government isn't just sitting back; they're taking action. They've rolled out the "Pambansang Pabahay para sa Batang Kankaloo" Program, a bold move to provide low-cost housing for informal settlers and residents without homes. This initiative is a key part of the city's strategy to ensure more families find affordable housing solutions.
For those eyeing property in Caloocan, this is a golden opportunity. The city's proactive stance and the government's financial muscle are setting the stage for a housing transformation. With these developments, Caloocan is poised to become a hub for affordable living, attracting new residents and investors alike.
Sources: Philstar, Tribune, Business Wire, Manila Standard
14) Waterfront properties in Parañaque will attract more interest as infrastructure projects enhance accessibility
Parañaque is becoming a hotspot for property buyers thanks to major infrastructure upgrades.
One standout project is the Pasig River Expressway (PAREx), which now links various parts of Manila directly to Parañaque. This new expressway makes commuting a breeze, drawing more attention to the area's waterfront properties. Imagine cutting down your travel time significantly while enjoying scenic views!
On top of that, the government is pouring money into the area, like the Php695 million expansion of the sewerage network by Maynilad Water Services. This isn't just about better plumbing; it's a sign that Parañaque is being groomed as a top spot for both living and business. Such upgrades make the idea of owning a waterfront property here even more tempting.
Property values are climbing, especially in places with better access. In 2024, over 60% of new condo supply in the Bay Area was snapped up, showing just how hot the market is. This boom in development is a clear signal that people want to live in places that are both easy to get to and visually appealing, like waterfronts.
Plus, new commercial and recreational spots are popping up along the waterfront, hinting at a rise in tourism and leisure activities. This buzz naturally makes living nearby more attractive. The Parañaque City Government is on board too, with plans to boost the city's livability, which only adds to the allure.
Sources: Global Property Guide, Maynilad Water Services, PNCC Annual Report
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) Smart home technology will be a standard feature in new residential projects in Manila
In Manila, smart home technology is becoming a must-have for new residential developments.
Back in 2023, 10.4% of Filipinos owned at least one smart home device, and this number is on the rise. People are increasingly interested in making their homes smarter, and it's not just about having the latest gadgets. It's about convenience and energy efficiency, like controlling your home with a smartphone or voice assistant.
Imagine being able to adjust your lights or thermostat from anywhere. That's what Filipino consumers are looking for, and 70% of home buyers are actively seeking smart homes. They want the ease, time savings, and security that come with these tech-savvy spaces.
Real estate developers are catching on, investing heavily in smart home technology. The Department of Energy in the Philippines, for instance, poured over USD 120 million into energy efficiency tech in 2023. This investment is a big push for the smart home market, making these features more common in new builds.
Partnerships between tech companies and real estate firms are also making it easier for residents to manage their smart devices. This collaboration is key to integrating smart solutions into new developments, ensuring that residents can enjoy a seamless tech experience.
As more people embrace this technology, smart home features are set to become standard in Manila's new residential projects. It's not just a trend; it's the future of living in the city.
Sources: MarkNtel Advisors, Exploding Topics, Statista
16) Pasig will attract eco-friendly developments, drawing in environmentally conscious buyers
Pasig City is turning into a prime spot for eco-friendly developments, attracting buyers who care about the environment.
In recent years, investment in green infrastructure has surged, thanks to Pasig's Green City Development Code. This code pushes for eco-friendly building designs and materials, ensuring that new projects align with sustainable urban living. The city backs this up by issuing City Environmental Certificates and Environmental Permits to keep everyone on track.
Eco-friendly residential projects are popping up all over. Condominiums like Elements Residences and Suntrust Kirana are setting the standard with features like solar panels, rainwater systems, and green roofs. These not only cut down on energy use but also appeal to buyers who value sustainability.
The local government is all in on sustainability, too. They've rolled out initiatives like the Green City Development Code, which enforces green building rules and encourages retrofitting older government buildings. Solar panels on streetlights and new government buildings highlight their dedication.
Pasig's commitment to eco-friendly growth is clear, making it a magnet for those looking to invest in sustainable living. The city's proactive approach to green development is reshaping its landscape, offering a fresh perspective for potential buyers.
With these efforts, Pasig is not just keeping up with global trends but is also setting an example for other cities aiming for sustainability. The city's focus on eco-friendly initiatives is a game-changer for the real estate market.
Sources: One Planet Network, Elements Residences, Suntrust Kirana
17) Virtual reality tours will become standard for property viewing, particularly for international buyers
Virtual reality tours are now a staple in property viewing, especially for international buyers.
In recent years, particularly around 2023 and 2024, the real estate industry has embraced virtual reality technology on a global scale. Imagine being able to walk through a potential new home without leaving your couch—more than half of adults have already experienced this through virtual tours. It's no wonder that 67% of home buyers are eager for virtual tours when browsing property listings.
Take Manila, for instance, where the influx of international property buyers is driving this trend. Foreigners can own condo units in the Philippines, making them a hot commodity among expats and foreign investors. In bustling business districts, international buyers are snapping up condos without the hassle of traveling, thanks to virtual tours.
Consumer surveys reveal that virtual tours are preferred over static photos by half of the buyers. Many won't even consider a property if it lacks a virtual tour. This is especially true for the younger crowd, aged 18 to 34, who are much more likely to schedule a showing if they can first explore the property virtually.
Sources: Richest PH, LUNAS VR, PhotoUp
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.