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What will happen in Panay Island’s real estate market? Will prices go up or down? Is Iloilo City still a hotspot for foreign investors? How is the Philippine government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local developers, real estate agents, and clients who buy properties in Panay Island, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

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1) More foreign investors will be interested in Iloilo City as its economy grows and develops
Foreign investors are eyeing Iloilo City thanks to its booming economy and development.
In 2023, Iloilo City's GDP hit P160.28 billion, showing a 10.5% jump from the previous year. This makes it the fastest-growing economy in Western Visayas, a clear sign of a vibrant economic scene that investors find irresistible.
Foreign direct investment (FDI) is also on the rise. The Philippines, with Iloilo included, outpaced Malaysia and Thailand in net FDI inflows in 2023. The third quarter alone saw PHP 27.30 billion in foreign investments, a whopping 109.3% increase from 2022. This surge shows that foreign investors are increasingly confident in the region's potential.
Infrastructure is a big draw for investors. Iloilo City is buzzing with major urban projects, like expanding roads, bridges, and airports. These upgrades are vital for smooth business operations and are a magnet for foreign investments. The city's smart city initiatives are also set to boost its business-friendly environment.
With these developments, Iloilo City is not just growing; it's transforming into a hub of opportunity. Investors are keen on the city's potential, driven by its economic growth and strategic improvements.
Sources: Manila Bulletin, Source of Asia
2) Property values in Iloilo City will rise significantly as it gains recognition as a business hub
Iloilo City is seeing a significant rise in property values thanks to its growing status as a business hub.
One major reason for this boom is the influx of Business Process Outsourcing (BPO) companies. With over 103 BPOs employing more than 41,000 locals, there's a surge in demand for both office and residential spaces. This demand is pushing property values higher.
Infrastructure investments are also playing a big role. The expansion of the Iloilo International Airport and projects like the Iloilo-Capiz-Aklan Expressway have greatly improved the city's connectivity. This makes Iloilo City more appealing to businesses and investors, which in turn boosts the real estate market.
The government is doing its part too. Initiatives by the Department of Trade and Industry to promote Iloilo City as a hub for Healthcare Information Management Services have attracted more companies. This influx of businesses has increased the demand for commercial and residential properties, further driving up property values.
Commercial developments are popping up everywhere. Projects like Megaworld's Enterprise One and Enterprise Two are adding significant office space to the market, catering to BPO and KPO firms. The strategic location of Iloilo City, enhanced by infrastructure projects like the Panay-Guimaras-Negros Bridge, makes it an ideal spot for business, further driving up property demand.
All these factors combined are making Iloilo City a hot spot for real estate investment, with property values on the rise as the city continues to grow as a business hub.
Sources: Outsource Accelerator, Daily Guardian, Manila Bulletin

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.
3) Property values in flood-prone Panay areas will drop as climate change worries increase
Properties in flood-prone areas of Panay are losing value as climate change becomes a bigger concern.
Panay Island has been hit hard by severe flooding, especially during the January 2023 and January 2024 events, which caused major damage and forced many to leave their homes. These floods are a clear sign of the growing risk due to changing climate patterns. Buyers are starting to notice these risks, and it's affecting their decisions.
Research shows that homes in flood-prone areas tend to drop in value. A study from Stanford University highlights that homes in floodplains lose about 2% of their value. This trend is likely to continue as more people become aware of the financial risks involved with these properties.
Insurance companies are reacting to the increased flood risk by raising premiums or even refusing coverage for properties in high-risk areas. This makes owning property in these areas more costly and less appealing to buyers, which further pushes down property values.
Government reports and media coverage are shining a light on how climate change is impacting real estate, and this is changing what buyers want. There's a noticeable shift away from flood-prone areas, which is expected to lead to a further decline in property values in these regions.
As climate change continues to be a hot topic, the real estate market in Panay is feeling the heat. Buyers are becoming more cautious, and the financial risks of owning property in flood-prone areas are becoming harder to ignore.
Sources: ADRC, Stanford News, LendingTree, Energy Tracker Asia, ReliefWeb
4) Demand for retirement-friendly housing in Panay will grow as the population ages
The aging population in Panay is shaping the housing market in interesting ways.
In the Philippines, the median age is 25 years, but there's a growing segment of people aged 60 and above, making up 8.8% of the population. This shift towards an older demographic is becoming more pronounced, especially in Panay.
By 2025, life expectancy in the Philippines is expected to hit 71.92 years. As people live longer, their housing needs evolve, often requiring more retirement-friendly options. This is particularly true for those over 65, who are becoming a larger part of the population.
In Panay, facilities like Mabuhaii Nursing Home in Iloilo City are thriving, offering specialized care for dementia patients. This success highlights a rising demand for senior care amenities. The senior housing industry is also seeing a boom, with a 40% increase in absorption rates in early 2024, indicating that demand is outpacing supply.
Real estate market analysis shows a strong interest in retirement communities, especially for those aged 80 and above. This gap between supply and demand presents a golden opportunity for Panay to develop more retirement-friendly housing options.
With the elderly expected to make up 7.7% of the total population by 2025, the need for housing that caters to older adults is clear. This demographic shift is not just a trend but a call to action for developers and investors in Panay.
Sources: Population Trends in Asia-Pacific, Philippines Life Expectancy 1950-2025, Mabuhaii Nursing Home, Senior Housing Industry Forecast, Aging Trends in the Philippines
5) Property prices in central Panay will rise moderately as infrastructure improves
Property prices in central Panay are on the rise due to better infrastructure.
The Panay-Guimaras-Negros Islands Bridge is a game-changer, with two massive bridges connecting these islands. This project, costing P187.54 billion, is set to transform the region's connectivity. Imagine cutting travel time between Panay and Negros from three to four hours down to under an hour. This makes central Panay much more accessible, drawing in more visitors and businesses.
When places become easier to reach, they often become more desirable, leading to increased property demand. The region is already buzzing with more tourism and business activities, thanks to infrastructure upgrades like the Iloilo Convention Center and the Pueblo de Panay Township. These developments have already shown positive impacts on property values in Western Visayas, and similar trends are expected in central Panay.
With these improvements, central Panay is becoming a hotspot for investors and homebuyers. The enhanced infrastructure is not just about convenience; it's about opening up new opportunities. The bridges and other projects are making the area more attractive, which naturally boosts property values.
For those considering buying property in the country, central Panay offers a promising prospect. The ongoing developments are setting the stage for a vibrant future. Investing here could mean being part of a growing community with increasing amenities and opportunities.
Sources: Panay News, Manila Bulletin, Gulf News
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6) Demand for affordable rentals near universities in Panay will grow as the student population increases
The growing student population in Panay is driving up the demand for affordable rentals near universities.
With the University of St. La Salle opening its first campus on Panay Island and the University of the Philippines Visayas launching an extension in Antique, more students are flocking to the area. This surge in student numbers means there's a pressing need for housing close to these schools.
On-campus housing isn't keeping up, as seen in the drop in preleasing rates, forcing many students to look for off-campus options. This is a common issue in university towns, where more students often mean higher demand for rentals, which can push up prices.
For those considering investing in property, this trend offers a unique opportunity. Properties near these universities are likely to see increased interest, making them potentially lucrative investments.
As the student population continues to grow, the demand for affordable housing will only intensify. This could lead to a competitive rental market, benefiting property owners.
Investors should keep an eye on these developments, as the rental market in Panay is poised for growth with the influx of students.
Sources: USLS News, UP Visayas News, GlobeSt
7) Demand for beachfront properties in Panay will grow as more foreign buyers invest
Foreign buyers are increasingly eyeing beachfront properties in Panay as a promising investment opportunity.
The Philippines is experiencing a notable rise in foreign direct investment, with a 3.8% increase projected for 2024. This uptick is largely driven by countries like Japan, the United States, and Singapore, which are pouring money into the real estate sector. Such trends reflect a growing confidence in the Philippine market, making it a hot spot for international investors.
There's also a boom in the demand for vacation rentals and Airbnb properties, thanks to rising consumer spending and stable rental rates. Companies like Robinsons Land Corporation are seeing significant revenue growth in their hospitality ventures, underscoring the profitability of tourist-focused properties.
The Philippine government is actively promoting tourism and foreign investment, with tourism numbers exceeding targets set by the National Tourism Development Plan. This support, along with better infrastructure and easier access to Panay Island, makes it even more attractive to foreign investors.
Panay's appeal is further enhanced by its natural beauty and cultural richness, offering a unique blend of relaxation and adventure. The island's pristine beaches and vibrant local culture are drawing more tourists, which in turn boosts the demand for rental properties.
With these factors in play, it's no wonder that foreign investors are setting their sights on Panay's beachfront properties, seeing them as a lucrative opportunity in a thriving market.
Sources: Trading Economics, Robinsons Land Corporation, Department of Tourism
8) Tax incentives for green buildings will boost sustainable housing development
New tax incentives are making green buildings more appealing for developers looking to create sustainable homes.
Previously, the Inflation Reduction Act rolled out enticing tax benefits like Section 179D deductions and Section 45L homebuilder tax credits, which make eco-friendly construction financially attractive. These incentives are a game-changer for developers eager to embrace green building practices.
There's also a growing consumer interest in eco-friendly homes, pushing developers to prioritize sustainable options. In places like Fort Bonifacio, green building adoption rates soared from 63% in 2022 to 73% in 2024, reflecting this shift in demand.
Take, for example, a Florida developer who tapped into federal tax credits to fund an eco-friendly apartment project. By incorporating energy-efficient appliances and certified green materials, they secured a substantial tax credit, which helped offset costs and spurred further investment in sustainable development.
These incentives are not just about saving money; they also align with a broader trend towards sustainability. Developers are increasingly aware that eco-friendly homes are becoming a must-have for modern buyers, who are more conscious of their environmental impact.
As more developers jump on the green bandwagon, we can expect to see a rise in sustainable residential properties. This shift is not just a trend but a response to the undeniable demand for greener living spaces that cater to environmentally conscious consumers.
Sources: BusinessWorld Online, Engineered Tax Services

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.
9) Demand for homes from overseas Filipino workers will grow as they look for investment opportunities back home
In 2023, overseas Filipino workers (OFWs) sent home a record USD37.2 billion, a 3% increase from the previous year.
This surge in remittances means OFWs have more funds to invest in real estate back home. Property prices in Metro Manila, Cebu, and Davao are climbing, so many OFWs are eyeing more affordable spots like Panay Island. The government often rolls out incentives to lure investments, which might include perks for real estate, making it a tempting choice for OFWs.
The real estate market in the Philippines is buzzing, with a noticeable uptick in demand for office spaces, especially from the Business Process Outsourcing (BPO) sector. This boom hints at more real estate projects aimed at OFWs, giving them a wider array of investment options.
OFWs are increasingly interested in properties that offer both investment potential and personal use. Developers are responding by creating mixed-use developments that cater to this dual purpose, blending residential, commercial, and leisure spaces.
In regions like Panay Island, the cost of living is significantly lower compared to major cities, making it an attractive option for OFWs looking to stretch their investment dollars further.
With the Philippine government’s ongoing infrastructure projects, transportation and connectivity are improving, making previously remote areas more accessible and appealing for property investments.
Sources: PNA, Asian Journal, BusinessWorld
10) Foreign interest in eco-friendly homes on Panay Island will increase
In 2023, 64% of global consumers were worried about climate change, and this concern is shaping how people choose their homes.
Panay Island, known for its stunning natural beauty and rich biodiversity, is becoming a hotspot for those seeking eco-friendly living. The island's charm has caught the eye of international media, which is likely to draw in foreign investors interested in sustainable developments.
The Philippine government is also on board, promoting sustainable construction practices. This could mean tax breaks for developers who incorporate eco-friendly features, making it an attractive option for investors.
Foreign investment in Philippine real estate is on the rise. In September 2024, there was a significant increase in foreign direct investment in real estate activities in the Philippines, showing growing interest from abroad.
Surveys indicate that consumers, especially in the U.S., are willing to pay more for sustainable products. This trend is likely to extend to real estate preferences globally, making eco-friendly homes on Panay Island even more appealing.
With these factors in play, it's clear that there will be a rise in foreign interest in eco-friendly residential developments on Panay Island.
Sources: TravelPerk, Daily Guardian, CEIC Data
11) Rental yields in Iloilo City will rise as young professionals move in for jobs
Rental yields in Iloilo City are set to rise as young professionals flock to the area for new job opportunities.
With the employment rate in Western Visayas, including Iloilo, climbing to 96.5% in 2024 from 94.9% in 2023, the job market is booming. This surge is attracting a wave of young talent eager to settle in a city that's buzzing with potential.
Adding to the allure, Iloilo is becoming a hotspot for businesses, especially large outsourcing firms. This influx of companies is not just a trend; it's a sign of ongoing economic growth that promises to keep the demand for rental properties high.
Government infrastructure projects are also playing a crucial role. By enhancing the city's connectivity and accessibility, these developments make Iloilo even more appealing to both businesses and young professionals. This improved infrastructure is a key factor in the increasing demand for rentals.
As more businesses establish themselves in Iloilo, the city is becoming a magnet for young professionals. This demographic shift is expected to drive up rental demand, making property investment in the area a promising venture.
All these elements combined suggest that Iloilo City is on a path of economic growth, with rental yields likely to increase as the city continues to attract new residents and businesses.
Sources: Daily Guardian, Business Inquirer
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12) Rental yields in rural Panay will drop as more people choose to own homes there
Homeownership is on the rise in rural Panay, especially noticeable in 2023 and 2024.
More people are buying homes in these areas because affordable housing options have increased. Government incentives like tax credits and rebates are making it easier for folks to purchase homes. Plus, programs such as USDA Rural Development loans, which require no down payment, are opening doors to homeownership.
As a result, fewer people are renting in rural Panay. This shift is causing a drop in demand for rental properties. The rental yield data shows that yields in rural areas are lower compared to urban centers, reflecting this trend.
With the decline in renters, rental prices are also going down. This further contributes to the decrease in rental yields, making renting less attractive for property investors.
For those considering buying property in rural Panay, this trend suggests a growing opportunity for homeownership. The shift from renting to owning is reshaping the housing market in these areas.
As more people opt for homeownership, rental yields in rural Panay are expected to continue declining. This change is significant for potential buyers and investors looking at the rural property market.
Sources: Global Property Guide, Philstar, HAR, Green Builder Media
13) Property prices in rural Panay will rise as remote workers find these areas more appealing
Rural areas in Panay are becoming hotspots for remote workers thanks to better internet and infrastructure.
Panay Island, nestled in the Western Visayas, has seen a boost in connectivity with the installation of underground fiber optic cables, making it more resilient to climate issues. This development is part of a broader effort in the Philippines to enhance broadband access, especially in areas that were previously underserved.
Globally, remote work is on the rise, and the Philippines is catching up fast. The country is now ranked 7th among the fastest-growing remote work hubs, thanks to economic growth and infrastructure improvements. This makes places like Panay, with its upgraded facilities, very appealing to those who work from home.
Surveys show that remote workers are drawn to rural areas for their natural beauty and lower cost of living. Panay Island, with its stunning landscapes and affordable lifestyle, is no exception. This shift in preference is pushing up property prices as more people look to settle in these serene environments.
Media and social media are buzzing about Panay's charm for remote work. The island's growing community of remote workers and its enhanced infrastructure are frequently highlighted, making it a desirable spot for those seeking a balanced lifestyle.
Sources: World Bank, Flowlu, PNA
14) Property prices in Antique will stay stable without major changes
The real estate market in Antique is expected to stay stable for the foreseeable future.
One reason for this stability is the area's steady population growth, which keeps the demand for housing consistent. This trend has been ongoing, as highlighted by the Vintage 2024 population projections. People are moving in, but not in overwhelming numbers, which helps keep the market balanced.
Another factor is the stable employment rates in Antique. While other parts of the Philippines have seen job declines, Antique has managed to maintain its employment levels. This consistency in jobs supports a balanced demand for homes, preventing any wild swings in property prices.
Interestingly, Antique doesn't have any major infrastructure projects on the horizon. This means there are no big changes expected that could suddenly drive up property prices. The local government is focused on balanced development, which means they're not rushing into rapid urbanization.
Historical data from real estate agencies show that property prices have barely fluctuated over the past few years. This is a good sign for potential buyers looking for a stable investment. The lack of aggressive urbanization policies further supports this trend.
All these factors together create a real estate market in Antique that is predictably stable, making it an attractive option for those considering buying property in the area.
Sources: Calculated Risk, Richest PH, Norada Real Estate
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.