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Panay Island's property market is experiencing steady growth driven by infrastructure development and tourism expansion.
Property prices across major cities like Iloilo City and tourist destinations like Boracay are rising moderately at 6% annually, with modern developments and condominiums leading demand. Sales velocity has increased for properties less than five years old, while rental yields in Iloilo City are becoming competitive with Metro Manila rates.
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Panay Island's property market shows positive momentum with 6% annual price growth in key cities and strong demand for modern developments.
Infrastructure projects like the Panay-Guimaras-Negros bridge and tourism growth in Boracay are driving investment opportunities, particularly in condominiums and vacation properties.
| Market Aspect | Current Status | Outlook |
|---|---|---|
| Price Growth | 6% annually (2016-2023) | Continued moderate growth |
| Sales Velocity | 25% faster for properties <5 years old | Modern developments favored |
| Rental Yields | Rising in Iloilo, 33% occupancy rates | Competitive with Metro Manila |
| Tourism Impact | 1.8M visitors to Boracay (2023) | Steady vacation rental demand |
| Infrastructure | Major bridge project underway | Significant value uplift expected |
| Foreign Investment | Active but restricted to condos | Continued interest from Asia-Pacific |
| Main Risk | Flood-prone areas, oversupply | Focus on elevated locations |
What's the current trend in property prices across Panay Island's main cities and tourist areas?
Property prices across Panay Island are experiencing moderate but consistent growth, with Iloilo City leading the charge at 6% annual price increases from 2016 to 2023.
The Iloilo metropolitan area shows the strongest price appreciation due to its expanding business process outsourcing (BPO) sector and urban development projects. Modern residential developments in the Iloilo Business Park and surrounding areas command premium prices compared to older properties.
Tourist areas in Aklan, particularly around Boracay and Kalibo, are seeing steady price growth driven by tourism recovery and infrastructure improvements. Vacation properties near beaches and tourist attractions are appreciating faster than residential properties in less touristic zones.
Roxas City and other secondary cities on Panay Island are experiencing more modest price growth of 3-4% annually, but this is expected to accelerate as new infrastructure projects improve connectivity and attract more businesses to these areas.
How fast are properties selling right now compared to a year ago?
Property sales velocity has increased significantly, with modern developments selling 25% faster than properties built more than five years ago.
Condominiums in Iloilo City and vacation properties near Boracay are experiencing the quickest sales cycles, often moving within 2-3 months of listing compared to 6-8 months for older properties. This acceleration is driven by buyer preference for modern amenities, better construction quality, and move-in ready conditions.
The fastest-selling properties are typically located in established developments with amenities like swimming pools, security systems, and proximity to commercial centers. Properties priced competitively within their respective market segments are moving particularly quickly as buyers become more selective about value propositions.
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What are the average rental yields in Iloilo City, Roxas City, Kalibo, and Boracay?
Rental yields across Panay Island vary significantly by location and property type, with Iloilo City showing the most promising returns for long-term rentals.
| City/Area | Average Rental Yield | Property Type |
|---|---|---|
| Iloilo City | 4-6% | Condominiums, apartments |
| Boracay | 8-12% | Vacation rentals (seasonal) |
| Kalibo | 4-5% | Houses, small apartments |
| Roxas City | 3-5% | Residential properties |
| Iloilo City (Short-term) | 6-8% | Airbnb properties (33% occupancy) |
| Boracay (Annual) | 10-15% | Vacation villas (52% occupancy) |
| Caticlan Corridor | 5-7% | Tourist-oriented properties |
Which types of properties are in highest demand right now?
Condominiums in urban centers are experiencing the highest demand across Panay Island, particularly in Iloilo City's business districts.
Modern residential houses less than five years old are selling rapidly, especially those located in gated communities with amenities like security systems, landscaped gardens, and proximity to shopping centers. These properties appeal to both local professionals and returning overseas Filipino workers.
Vacation properties near Boracay and other tourist destinations remain highly sought after by both domestic and foreign investors looking for short-term rental opportunities. Beach houses, resort-style condominiums, and properties with ocean views command premium prices and sell quickly.
Commercial properties near new infrastructure projects, particularly retail spaces and small office buildings in growing business districts, are attracting significant investor interest as businesses expand operations across the island.
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How much new real estate development is underway, and in which areas?
Major real estate development projects are concentrated in three key areas across Panay Island as of September 2025.
Iloilo City leads with significant projects including expansions at Atria Park District and the Iloilo Business Park, targeting the growing BPO workforce and urban professionals. These developments include residential towers, office complexes, and mixed-use facilities designed to accommodate the city's rapid economic growth.
The Caticlan-Kalibo corridor in Aklan province is experiencing substantial tourism-related development, with new resort properties, vacation condominiums, and hospitality infrastructure being constructed to serve the increasing visitor traffic to Boracay.
Roxas City is emerging as a development hotspot with the Pueblo de Panay project, an eco-friendly, technology-focused development that aims to position the city as a sustainable business hub. This project represents a new model for environmentally conscious real estate development in the Philippines.
What infrastructure projects are planned or ongoing, and how might they impact property values?
The most significant infrastructure project is the Panay-Guimaras-Negros Islands Bridge, which will dramatically reduce travel times and connect previously isolated markets.
This bridge project is expected to increase property values in areas that will benefit from improved connectivity, particularly in coastal zones and previously less accessible parts of the island. Properties near the bridge terminals and along improved transportation corridors are already showing price appreciation in anticipation of completion.
Airport upgrades in Kalibo and Caticlan are expanding capacity to handle increased tourism traffic, directly benefiting vacation property values in Aklan province. These improvements make the region more accessible to international visitors, supporting the vacation rental market.
The government's "Build, Build, Build" infrastructure program continues to fund road improvements, port expansions, and utility upgrades across Panay Island, creating a foundation for sustained real estate value growth in previously underserved areas.
Are foreign buyers actively investing in Panay Island, and are there any restrictions they should know about?
Foreign investment in Panay Island real estate is active but subject to Philippine ownership restrictions that limit foreign buyers to condominium units only.
International buyers, particularly from China, South Korea, and Western countries, are focusing their investments on condominiums in Iloilo City and vacation properties near tourist areas. Foreign individuals cannot own land directly but can purchase condominium units in buildings where foreign ownership does not exceed 40% of the total units.
Creative ownership structures through Philippine corporations or long-term leases are sometimes used by foreign investors, but these arrangements require careful legal guidance to ensure compliance with local regulations. Many foreign buyers partner with Filipino citizens or permanent residents to access a broader range of property types.
Government incentives for business process outsourcing and eco-friendly development projects are attracting foreign developers and multinational companies, creating opportunities for foreign investment in commercial and mixed-use projects.
What financing options are available locally, and what are the current mortgage rates?
Local banks in the Philippines offer mortgage financing primarily to residents and foreign residents, with current rates ranging from 6-8% for qualified borrowers as of September 2025.
Filipino citizens and permanent residents have access to standard bank mortgages through major institutions like BDO, BPI, and Metrobank, with loan-to-value ratios typically reaching 80-90% for qualified applicants. Overseas Filipino workers often receive preferential rates and terms due to their stable foreign income sources.
Foreign buyers face more limited financing options, with most international investors choosing to purchase properties with cash or securing financing from their home countries. Some developers offer installment payment plans that can extend over several years, providing an alternative to traditional bank financing.
Creative financing arrangements, including rent-to-own schemes and developer financing, are becoming more common as competition among property developers increases and they seek to accommodate diverse buyer financial situations.
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How are tourism trends on Boracay and surrounding islands affecting the property market?
Boracay's tourism recovery continues to drive vacation property demand despite a modest decline in visitor growth rates compared to pre-pandemic levels.
The island received approximately 1.8 million visitors in 2023, supporting a robust vacation rental market with average occupancy rates of 52% and annual revenues of PHP 630,000 for well-positioned properties. This sustained tourism flow creates consistent demand for short-term rental properties and vacation homes.
Government initiatives promoting sustainable tourism are influencing property development standards, favoring eco-friendly projects and properties that comply with environmental regulations. This shift is creating opportunities for developers who incorporate sustainable design and construction practices.
Tourism diversification efforts beyond Boracay are spreading visitor traffic to other parts of Aklan and neighboring areas, creating new opportunities for vacation property investment in previously overlooked coastal areas and cultural destinations.
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What government policies or regulations could influence property investment in Panay over the next few years?
The Philippine government's infrastructure spending programs and special economic zone designations are the primary policy drivers affecting Panay Island real estate investment.
Special economic zones for business process outsourcing, technology companies, and eco-friendly industries are being established across the island, creating concentrated areas of economic activity that drive property demand. These zones typically offer tax incentives that attract businesses and create employment, supporting residential property values in surrounding areas.
Environmental regulations related to coastal development and flood management are becoming stricter, affecting where and how properties can be developed. Properties in flood-prone areas face increased regulatory scrutiny, while elevated and environmentally compliant developments receive preferential treatment.
Foreign ownership regulations remain stable but restrictive, with no indication of significant changes that would allow foreign individuals to own land directly. However, policies encouraging foreign business investment continue to create indirect opportunities for real estate investment.
What risks should property investors be aware of in Panay Island?
Natural disaster exposure, particularly flooding, represents the most significant risk for property investors in Panay Island.
Climate change is increasing the frequency and severity of flooding in low-lying coastal areas and river basins, making location selection crucial for long-term investment success. Properties in elevated areas and those with proper drainage infrastructure are commanding premium prices as buyers become more risk-conscious.
Oversupply risk exists in certain market segments, particularly condominiums and commercial office spaces in secondary cities where development has outpaced population and economic growth. Investors should carefully analyze local supply-demand dynamics before committing to specific property types and locations.
Economic risks include potential shifts in overseas Filipino worker remittances, which significantly impact local purchasing power, and broader macroeconomic challenges that could affect tourism and business investment flows to the region.
Where are the emerging hotspots on Panay Island showing strong growth potential?
The most promising emerging hotspots are clustered around major infrastructure developments and business growth centers.
- Iloilo Business Park expansion areas - New residential and commercial developments serving the growing BPO and technology sector workforce
- Panay-Guimaras Bridge corridor - Properties along the route of the new bridge connection showing early price appreciation
- Caticlan tourism zone - Areas serving as gateways to Boracay with improved airport access and tourism infrastructure
- Pueblo de Panay vicinity in Roxas City - Eco-friendly development attracting technology companies and sustainable businesses
- Kalibo airport corridor - Properties benefiting from increased international flight capacity and tourism traffic
- Coastal areas with flood protection - Elevated waterfront properties that combine tourism appeal with climate resilience
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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.
Panay Island's property market outlook remains positive for 2025 and beyond, supported by infrastructure development, tourism growth, and economic diversification.
Smart investors should focus on modern developments in growth corridors while carefully managing risks related to natural disasters and market oversupply in certain segments.
Sources
- Panay Island Real Estate Market Analysis
- Panay Island Real Estate Forecasts
- Panay Island Real Estate Trends
- Annual Airbnb Revenue in Boracay Philippines
- Philippines 5-Year Real Estate Forecast
- Iloilo City Rental Market Report
- Panay Island Property Investment Guide
- Philippines Residential Property Prices