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Property prices in Panay Island are experiencing significant growth as we reach mid-2025, driven by massive infrastructure projects and strong economic fundamentals.
As major bridges connect the island to neighboring regions and tourism rebounds, Panay Island's real estate market is transforming rapidly. The combination of improved connectivity, rising domestic demand, and strategic government investments is creating a perfect storm for property appreciation across the island's key cities and coastal areas.
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Property prices in Panay Island are rising significantly, with Iloilo City and Boracay leading the charge at 6-14% annual growth rates.
The massive ₱187 billion Panay-Guimaras-Negros Bridge and other infrastructure projects are transforming property values, especially in central Panay and areas near new transport links.
| Area | Average Price (per sqm) | Annual Growth Rate | Key Driver |
|---|---|---|---|
| Iloilo City | ₱55,000-₱75,000 | 6-12% | Economic growth, infrastructure |
| Boracay (Aklan) | ₱75,000-₱100,000 | 5-10% | Tourism recovery, foreign demand |
| Central Panay | ₱40,000-₱60,000 | 5-8% | Bridge project, accessibility |
| AONCR Average | ₱55,202 | 14.3% (Q3 2023) | Regional development |
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.
What are the current property prices in Panay Island as of June 2025?
Property prices in Panay Island vary significantly by location, with premium areas commanding substantially higher rates than rural zones.
As of mid-2025, the average residential property price in Panay Island stands at ₱55,202 per square meter, positioning it well above many rural Philippine areas but below Metro Manila levels. In Iloilo City, the island's economic hub, residential properties range from ₱55,000 to ₱75,000 per square meter, with house-and-lot units experiencing steady 6% annual appreciation since 2016.
Boracay remains Panay's most expensive market, with condominiums averaging ₱100,000 per square meter, houses at ₱75,000 per square meter, and townhouses at ₱65,000 per square meter. Beachfront properties in Boracay can command double or triple these rates, reflecting strong demand from both domestic and international buyers.
Central Panay offers more affordable options, with prices ranging from ₱40,000 to ₱60,000 per square meter. These areas are experiencing increased interest due to improved infrastructure and the upcoming Panay-Guimaras-Negros Bridge, which promises to transform regional connectivity.
The median list price for houses in Iloilo City specifically is ₱5,558,271, with a median price per square meter of ₱60,317. This represents stable pricing compared to the previous year, though certain segments and locations within the city are seeing stronger appreciation.
How much have property prices increased in Panay Island recently?
Property prices across Panay Island have shown robust growth over the past year, significantly outpacing national averages.
The Areas Outside the National Capital Region (AONCR), which includes Panay Island, recorded an impressive 14.3% year-on-year price increase in Q3 2023. This growth momentum has continued into 2025, with residential properties maintaining strong appreciation rates in line with the national trend of 6.74% year-on-year growth recorded in December 2024.
Iloilo City has been particularly strong, with house-and-lot prices rising consistently at 6% annually from 2016 to 2025. The lot-only development segment has performed even better, achieving 12% annual growth over the same period. This sustained appreciation reflects growing confidence in Iloilo's economic prospects and its emergence as a major regional business center.
In Boracay, property values have increased by approximately 5-10% annually, driven by the tourism sector's recovery and increased foreign investment interest. The post-pandemic rebound has been particularly strong, with premium beachfront properties leading the price gains.
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Where are property prices increasing the most in Panay Island?
Iloilo City is experiencing the fastest property price growth in Panay Island, driven by exceptional economic performance and strategic location.
The city's remarkable 10.5% GDP growth in 2023 has created a ripple effect throughout the real estate market. Lot-only developments in Iloilo have seen the most dramatic appreciation at 12% annually, while house-and-lot units have grown steadily at 6% per year. Areas like Jaro district are particularly hot, benefiting from proximity to major universities including the University of the Philippines Visayas and West Visayas State University.
Coastal areas in Oton and Dumangas are emerging as new growth hotspots. These municipalities are attracting buyers seeking beachfront properties and larger lots, with prices climbing rapidly as new resort developments and luxury subdivisions transform these previously overlooked areas.
Central Panay, particularly areas along the future route of the Panay-Guimaras-Negros Bridge, is seeing accelerated price growth. Properties within proximity to the bridge terminals and new infrastructure corridors are appreciating faster than the regional average, as investors anticipate the dramatic improvements in accessibility.
Boracay's Station 1 and Station 2 areas continue to command premium prices, with beachfront properties experiencing the strongest appreciation. The combination of limited supply, environmental regulations, and surging tourism demand has created a sellers' market in these prime locations.
What are the property price forecasts for Panay Island in 2026?
Property prices in Panay Island are projected to continue their upward trajectory through 2026, supported by infrastructure developments and economic growth.
Market analysts expect Iloilo City residential properties to appreciate by 6-8% in 2026, maintaining the consistent growth pattern established over the past decade. The completion of major infrastructure projects, including progress on the Panay-Guimaras-Negros Bridge and the ₱20 billion Iloilo International Airport expansion, will likely accelerate demand and push prices higher in strategic locations.
Central Panay is poised for above-average growth of 8-10% in 2026 as the bridge project advances. Properties near planned commercial hubs and transport corridors are expected to see the strongest appreciation. The government's commitment to the ₱187 billion bridge project has already sparked speculative buying, which should intensify as construction progresses.
Boracay's property market is forecast to grow 5-7% in 2026, with beachfront and tourism-oriented properties leading gains. The continued recovery of international tourism and new sustainable development initiatives will support steady appreciation, though environmental regulations may limit supply and push prices higher for approved developments.
Economic factors supporting these forecasts include the Philippine government's 6-8% GDP growth target, continued infrastructure spending under the "Build Better More" program, and rising domestic consumption. However, global economic uncertainties and interest rate movements could moderate these projections.
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Which property types are experiencing the biggest price increases?
Beachfront properties and lot-only developments are leading price appreciation across Panay Island's diverse real estate market.
Beachfront lots, particularly in Boracay and emerging coastal areas like Oton, are seeing exceptional demand from both domestic and foreign investors. These properties command premium prices due to their scarcity and tourism potential, with annual appreciation rates reaching 10-15% in prime locations. The combination of limited coastal land, environmental regulations, and surging tourism interest creates a highly competitive market.
Lot-only developments in Iloilo have achieved remarkable 12% annual growth from 2016 to 2025, outperforming all other property types. This segment attracts investors and families seeking to build custom homes, with buyers willing to pay premiums for well-located parcels in established subdivisions or near major infrastructure projects.
| Property Type | Annual Growth Rate | Average Price Range | Key Demand Drivers |
|---|---|---|---|
| Beachfront Properties | 10-15% | ₱100,000-₱200,000/sqm | Tourism, foreign investment, scarcity |
| Lot-Only Developments | 12% | ₱40,000-₱80,000/sqm | Custom building preference, investment potential |
| Integrated Townships | 8-10% | ₱50,000-₱90,000/sqm | Modern amenities, master planning |
| Eco-Friendly Homes | 7-9% | ₱60,000-₱100,000/sqm | Climate resilience, sustainability trends |
| Condominiums | 6-8% | ₱70,000-₱120,000/sqm | Urban lifestyle, rental income |
| Traditional Houses | 6% | ₱45,000-₱75,000/sqm | Family demand, stable appreciation |
| Townhouses | 5-7% | ₱50,000-₱70,000/sqm | Affordable luxury, security |
Properties in master-planned communities and integrated townships are attracting premium prices as buyers prioritize amenities, security, and climate resilience. These developments often feature green spaces, commercial areas, and modern infrastructure, commanding 20-30% premiums over standalone properties.
How do current prices compare to 5 and 10 years ago?
Property prices in Panay Island have experienced substantial appreciation over the past decade, with some areas nearly doubling in value.
Over the past 10 years, Iloilo City house-and-lot prices have risen by approximately 80% when compounded at 6% annual growth. A property that cost ₱3 million in 2015 would now be valued at around ₱5.4 million in 2025. This consistent appreciation has rewarded long-term investors and homeowners while making the market increasingly competitive for new buyers.
Boracay condominium prices have increased by 40-50% over the last decade, rising from approximately ₱70,000 per square meter in 2015 to ₱100,000 per square meter in 2025. Despite periodic tourism disruptions and environmental rehabilitation efforts, the island's premium property market has shown remarkable resilience and continued growth.
The AONCR average, which includes Panay Island, has grown by roughly 60% over the past ten years, from approximately ₱35,000 per square meter in 2015 to ₱55,202 in 2025. This outpaces many other regional markets in the Philippines and reflects Panay's emergence as a major economic center.
Looking at the five-year comparison, properties have appreciated 30-40% on average since 2020, with the post-pandemic period seeing accelerated growth. The combination of low interest rates, infrastructure investments, and changing lifestyle preferences has compressed what might have been a decade of appreciation into just five years.
What impact are infrastructure projects having on property values?
Major infrastructure projects are fundamentally transforming Panay Island's property market, with the Panay-Guimaras-Negros Bridge leading the charge.
The ₱187-189 billion bridge project is already stimulating property demand across central Panay and Iloilo, even though completion is targeted for 2030. This massive undertaking will reduce travel time between Panay and Negros from three to four hours to under one hour, dramatically improving regional connectivity. Properties within 10 kilometers of planned bridge access points are seeing 15-20% premiums compared to similar properties in other areas.
The ₱20 billion Iloilo International Airport expansion is another game-changer, set to boost both tourism and business travel. Properties near the airport and along the corridor to Iloilo City are experiencing accelerated appreciation as investors anticipate increased economic activity. The expansion will accommodate larger aircraft and more frequent international flights, positioning Iloilo as a major regional aviation hub.
The Iloilo-Capiz-Aklan Expressway and various port improvements are creating new growth corridors throughout Panay. These projects are opening previously inaccessible areas to development, with land prices along planned routes increasing by 20-30% since announcements. The improved connectivity is particularly benefiting properties in secondary cities and municipalities that will gain better access to major urban centers.
You can find detailed analysis of these infrastructure impacts in our Philippines property pack.
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.
How are government policies affecting Panay Island real estate?
The Marcos Jr. administration's policies are creating a favorable environment for Panay Island's property market growth through infrastructure investment and regulatory reforms.
The "Build Better More" infrastructure program is channeling unprecedented funding into Panay Island, with the ₱187 billion bridge project representing the largest single investment. This commitment to regional development is boosting investor confidence and driving speculative buying in areas slated for improvement. The program's emphasis on connectivity and economic integration particularly benefits Panay as a strategic location in the Visayas.
The Real Property Valuation and Assessment Reform (RPVAR) Act is modernizing property valuation standards, improving market transparency and efficiency. This reform is attracting more institutional investors to Panay's property market by providing clearer pricing benchmarks and reducing transaction uncertainties. The standardization of valuations across municipalities is also helping to identify undervalued areas with growth potential.
Tax incentives for green building and sustainable development are influencing property development patterns in Panay. Developers incorporating renewable energy, water conservation, and climate-resilient features can access preferential tax treatment, leading to a surge in eco-friendly projects. These policies are particularly relevant in coastal areas like Boracay, where environmental sustainability is crucial for long-term value.
Regional development initiatives, including the proposed establishment of new economic zones and IT parks in Iloilo, are creating employment opportunities and driving residential demand. Government support for the business process outsourcing (BPO) sector has made Iloilo an attractive alternative to Metro Manila, with property prices benefiting from the influx of young professionals.
What is driving demand from domestic and foreign buyers?
Domestic demand remains the primary driver of Panay Island's property market, supported by economic growth and changing lifestyle preferences.
Local buyers, particularly from Metro Manila and overseas Filipino workers (OFWs), are increasingly viewing Panay as an attractive alternative to congested urban centers. Iloilo City's 10.5% GDP growth in 2023 has created employment opportunities and attracted professionals seeking better work-life balance. The rise of remote work has also enabled Manila-based workers to relocate to Panay while maintaining their careers.
Foreign demand is concentrated in leisure and beachfront properties, especially in Boracay and emerging coastal areas. International investors are drawn to Panay's tourism potential, relatively affordable prices compared to other Southeast Asian beach destinations, and improving accessibility through airport upgrades. Despite ownership restrictions, foreigners are actively participating through long-term leases and condominium purchases.
The education sector is creating substantial demand in areas like Jaro, where proximity to major universities drives both rental and ownership markets. With institutions like UP Visayas and new campus expansions, student housing and family homes near schools command premium prices and quick sales. This education-driven demand provides stable, long-term support for property values.
Investment buyers seeking rental income are particularly active in Iloilo's urban areas and Boracay's tourism zones. The combination of capital appreciation and rental yields of 5-8% annually makes Panay properties attractive for portfolio diversification. The growing expatriate community and business traveler segment ensure steady rental demand.
How does Panay Island compare to other regions in the Philippines?
Panay Island's property market is outperforming most Philippine regions, with growth rates exceeding national averages.
The 14.3% year-on-year price increase in AONCR (which includes Panay) significantly surpasses the national average of 6.74%, positioning Panay among the fastest-growing regional markets. Only select areas in Metro Cebu show comparable growth rates, while traditional investment destinations like Metro Manila are experiencing slower appreciation due to market maturity and affordability constraints.
Compared to other Visayas regions, Panay offers a unique combination of affordability and growth potential. While Cebu City commands higher absolute prices, Panay's percentage gains are often stronger, offering better entry points for investors. Bohol and Negros, while attractive, lack Panay's comprehensive infrastructure pipeline and economic diversity.
| Region | Average Price/sqm | Annual Growth | Investment Appeal |
|---|---|---|---|
| Metro Manila | ₱120,000-₱200,000 | 3-5% | Mature market, limited upside |
| Panay Island | ₱55,202 | 6-14% | High growth, infrastructure boost |
| Metro Cebu | ₱80,000-₱150,000 | 5-8% | Established market, steady growth |
| Davao | ₱50,000-₱90,000 | 4-7% | Emerging market, good potential |
| Clark/Angeles | ₱40,000-₱80,000 | 5-9% | Infrastructure-driven growth |
| Bohol | ₱35,000-₱70,000 | 3-6% | Tourism-dependent, moderate growth |
| Palawan | ₱40,000-₱100,000 | 4-8% | Tourism focus, environmental limits |
Panay's diversified economy, spanning agriculture, commerce, tourism, and services, provides more stable growth compared to single-industry dependent regions. This economic resilience, combined with major infrastructure investments, positions Panay as one of the Philippines' most promising property markets for the next decade.
What economic factors are supporting property price growth?
Multiple economic drivers are converging to support sustained property price appreciation across Panay Island.
Iloilo City's exceptional 10.5% GDP growth in 2023 stands out as a primary catalyst, significantly outpacing the national average. This economic expansion is driven by a thriving business process outsourcing (BPO) sector, growing retail and commercial activity, and increased government spending on infrastructure. The city's emergence as a regional business hub is creating employment opportunities and attracting a young, affluent workforce that drives housing demand.
Tourism recovery is providing strong support for property markets in Boracay and coastal areas. With 2.15 million tourists visiting Boracay in 2023 and numbers continuing to climb in 2025, the hospitality and residential sectors are experiencing renewed vigor. Tourist arrivals reached 172,913 in January 2024 alone, indicating sustained momentum that supports both commercial and residential property values.
Infrastructure spending is injecting billions of pesos into the local economy, creating multiplier effects across construction, services, and real estate. The ₱187 billion bridge project alone is generating thousands of jobs and attracting ancillary investments. This infrastructure boom is raising land values along development corridors and spurring new commercial and residential projects.
Demographic trends favor continued growth, with ongoing urbanization and population increases sustaining housing demand. The rise of nuclear families, growing middle class, and preference for modern amenities are reshaping the property market. Young professionals and families are driving demand for condominiums, townhouses, and subdivisions with contemporary features.
How is climate change affecting property values in different areas?
Climate considerations are increasingly influencing property values across Panay Island, creating distinct winners and losers in the market.
Properties in flood-prone areas are experiencing value erosion, with studies showing typical 2% decreases for homes in identified floodplains. The January 2023 and January 2024 flooding events highlighted vulnerability in certain low-lying areas, leading to buyer wariness and difficulty securing insurance. These climate risks are particularly affecting older developments lacking modern drainage and flood mitigation infrastructure.
Conversely, properties in elevated areas and those featuring climate-resilient design are commanding premiums of 10-15% over comparable standard properties. Buyers are actively seeking homes with features like elevated foundations, superior drainage, renewable energy systems, and storm-resistant construction. Developments marketing these features are achieving faster sales and higher prices.
Coastal properties face a complex dynamic where premium beachfront locations remain highly desirable but require substantial climate adaptation investments. Developers in Boracay and other coastal areas are incorporating seawalls, elevated structures, and enhanced storm protection, with these costs reflected in higher prices. Well-protected beachfront properties continue to appreciate, while vulnerable locations see stagnant or declining values.
Insurance availability and costs are becoming crucial factors in property valuations. Areas with high climate risk face insurance premiums that can add 20-30% to annual property costs, effectively reducing affordability and demand. This insurance factor is steering investment toward lower-risk locations and properties with demonstrated resilience features, creating a clear value differential in the market.
We analyze these climate impacts in detail in our Philippines property pack.
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.
Based on comprehensive market analysis and current trends, property prices in Panay Island are definitively going up, with strong momentum expected to continue through 2026 and beyond. The answer is: Yes a lot.
The combination of robust economic growth, massive infrastructure investments, and increasing domestic and foreign demand creates a compelling case for continued appreciation. With Iloilo City leading at 6-12% annual growth and the AONCR region showing 14.3% gains, Panay Island represents one of the Philippines' most dynamic property markets, offering both capital appreciation potential and improving quality of life for residents and investors.
Sources
- Daily Guardian - Nationwide Residential Property Prices Rise
- InvestAsian - Philippines House Cost Analysis
- Philippine Daily Inquirer - Iloilo's Resplendent Property Market
- BambooRoutes - Philippines Property Market Areas
- Trading Economics - Philippines Residential Property Prices
- BambooRoutes - Panay Island Real Estate Forecasts
- Manila Bulletin - Iloilo City Growth Projections
- Philippine Daily Inquirer - Vista Land Iloilo Expansion
- Panay News - Iloilo Airport Expansion
- BambooRoutes - Panay Island Property Investment Guide