Authored by the expert who managed and guided the team behind the Philippines Property Pack
Everything you need to know before buying real estate is included in our The Philippines Property Pack
What is happening in Panay Island’s real estate market? Are prices going up or down? Is Iloilo City still a hotspot for foreign investors? How are local government policies impacting real estate development and taxes in 2025?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from Kalibo to Roxas City and beyond. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Panay Island real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
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.
How this content was created 🔎📝
1) Foreign investment in Iloilo City will increase due to its expanding business environment
Iloilo City is buzzing with foreign investment, thanks to its booming business scene.
In 2023, the city saw a surge in business activity, with over 16,000 business licenses approved in just the first quarter. This momentum carried into 2024, with a 15% jump in business permit renewals by February, signaling a strong interest in the local market.
The development of new business parks is a game-changer. The Iloilo Business Park, a sprawling 72-hectare township, is on track to become the largest IT Park in Western Visayas. It's already lured several big-name BPO companies, creating thousands of jobs and catching international eyes.
Infrastructure upgrades are making the city even more attractive. With better roads and airports, Iloilo City is becoming a prime spot for foreign investors looking for convenience and growth potential.
Government incentives are a big draw too. The Philippine Economic Zone Authority (PEZA) offers tax breaks and eases business operations, especially for the IT-BPM sector. This has been a magnet for U.S. investments, which have been on the rise.
The growing expatriate community in Iloilo City is another sign of its appeal. It shows that the city is not just business-friendly but also a welcoming place for international professionals and their families.
Sources: Philstar, Sunstar, Iloilo Business Park, CSIS, Daily Guardian
2) Iloilo City’s property prices may slightly decline as new developments boost supply
Iloilo City is buzzing with new developments, making it an exciting time for potential property buyers.
Projects like the Iloilo Business Park and the Atria Park District are popping up everywhere, leading to a noticeable increase in available properties. When there are more homes and offices than people ready to buy or rent, it can create an oversupply.
The City Engineer’s Office has been busy, with a surge in building permit applications. This means more properties are being constructed, which could lead to a higher number of unsold properties. When sellers have too many unsold units, they might drop prices to attract buyers.
In early 2024, the vacancy rate in Iloilo’s office market hit 28%, and more office space is on the way. This flood of new spaces can push rental rates down, hinting that property prices might not climb as fast or could even dip a bit.
For those eyeing a property in Iloilo, this could mean more negotiating power and better deals. With the market adjusting to the influx of new developments, it's a good time to keep an eye on price trends.
As the city continues to grow, the balance between supply and demand will be key in shaping property values. Stay informed and ready to seize opportunities as they arise.
Sources: Inquirer, Iloilo City Government, Mindanao Times
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Property prices near new commercial hubs in Iloilo will rise significantly
Properties near new commercial hubs in Iloilo are set for a price surge.
Over the past few years, property values in Iloilo have been climbing steadily. From 2016 to 2023, house-and-lot units saw an average annual increase of 6%. The horizontal segment, which includes lot-only developments, experienced an even more impressive rise, with prices jumping by 12% each year.
Iloilo's charm is attracting outsourcing companies and BPOs, which is driving up demand for homes near commercial centers. The city churns out about 7,000 graduates annually, boosting the local economy. In early 2024, Iloilo snagged 13% of all property deals outside Metro Manila, showing just how hot the market is.
Government infrastructure projects are a game-changer for property prices. The Panay-Guimaras-Negros Inter-Island Link Bridge, set to be completed by 2030, will improve regional connectivity and spark interest in leisure developments. Plus, the Iloilo International Airport Rehabilitation and the Iloilo-Capiz-Aklan Expressway are poised to revitalize the property scene in Iloilo.
These developments are not just about convenience; they’re reshaping the landscape. With better infrastructure, the appeal of living and investing in Iloilo is skyrocketing. The city is becoming a magnet for both local and international investors looking for promising opportunities.
As Iloilo continues to grow, the demand for residential properties near these new commercial hubs is expected to rise. This trend is a clear indicator that investing in Iloilo's property market could be a smart move for those looking to capitalize on the city's upward trajectory.
Sources: Inquirer, Lamudi, Dot Property
4) Eco-friendly properties in Antique will attract more foreign buyers
Antique on Panay Island is becoming a hotspot for eco-friendly property investments.
Foreign buyers are increasingly interested in properties that embrace sustainability, and Antique is catching their eye. The global real estate market is shifting towards eco-friendly designs and renewable energy, a trend that has been growing since 2023. This shift is largely due to increased awareness of climate change and its impact on real estate.
In Antique, eco-tourism initiatives like the Tourist Rest Area in San Remigio are making waves. This development, featuring eco-friendly amenities, has received positive media attention, boosting its appeal to international investors. The Philippine government is also offering incentives for sustainable property development, which is a big draw for foreign buyers.
Consumer surveys reveal a strong preference for sustainable living options, a trend that continues to gain momentum. The availability of green building materials and technologies makes it easier to create and maintain eco-friendly properties. This aligns with the interests of international buyers who are keen on off-grid and self-sustaining properties.
Antique's commitment to sustainable tourism is evident in its development projects. The region's focus on eco-friendly amenities not only attracts tourists but also foreign investors looking for properties that support a sustainable lifestyle. The combination of government incentives and positive media coverage makes Antique a prime location for eco-conscious property investments.
As the demand for sustainable properties grows, Antique's real estate market is poised to benefit. The region's dedication to eco-friendly development is a significant factor in attracting international buyers. With the right mix of incentives and sustainable initiatives, Antique is set to become a leading destination for eco-friendly real estate investments.
Sources: Rentastic, Philippines Department of Tourism, Travel and Tour World
5) Beachfront properties in Aklan will attract more interest from foreign buyers
Foreign buyers are eyeing beachfront properties in Aklan for some pretty compelling reasons.
One big draw is Boracay's fame as a tourist hotspot. Even with a slight dip in visitors from 2023 to 2024, over a million local tourists flocked to Boracay in 2024. This shows the island's lasting charm and why it's a smart investment.
Traveling to Aklan is getting easier, too. With more international flights landing at Kalibo and Caticlan Airports, connections to cities like Seoul, Kuala Lumpur, and Taipei are boosting the region's appeal to foreign tourists and potential property buyers.
Economic factors are also in play. Favorable exchange rates make the Philippines a cost-effective choice for foreign investors. When you add the country's stunning landscapes and the government's push for tourism and foreign investment, Aklan becomes a top pick for beachfront property seekers.
Sources: Inquirer, My Boracay Guide, PATA, International Surf Properties
Make a profitable investment in Panay Island
Better information leads to better decisions. Save time and money. Download our guide.
6) Panay Island’s property prices will rise moderately with increased infrastructure development
Panay Island is buzzing with new infrastructure projects, making it a hot spot for potential property buyers.
One standout project is the Panay-Guimaras-Negros Islands Bridge, a massive undertaking with a price tag of P187.54 billion. This bridge is more than just a structure; it's a game-changer for the region, promising to slash travel time from hours to under one hour. Imagine the convenience of zipping across 32.47 kilometers of sea-crossing bridges and roads, making your daily commute a breeze.
With these improvements, real estate developers are eyeing Panay Island like never before. The government's "Build, Build, Build" program is not just a slogan; it's a reality that's reshaping the landscape. New infrastructure is turning previously overlooked areas into prime real estate, sparking a surge in demand for both residential and commercial properties.
For those considering a move or investment, this means new opportunities are emerging in areas that were once off the beaten path. The enhanced connectivity is not just about convenience; it's about opening doors to new possibilities and growth. As these projects come to fruition, the local real estate market is poised for a transformation.
Insider tip: Keep an eye on areas near these new developments. As infrastructure projects progress, property values in these regions are likely to rise. It's a chance to get in early before prices climb, making it a smart move for savvy investors.
Overall, property prices in Panay Island are expected to rise moderately due to these infrastructure developments. The island is on the cusp of change, and those who act now could benefit from the upcoming boom.
Sources: Panay News, Crossroads Hostel Manila, Billion Bricks
7) Panay’s growing middle class will boost demand for mid-range housing
The middle-income class in Panay is growing rapidly, making it a hotspot for potential property buyers.
From 1991 to 2021, the share of middle-income Filipinos in the Philippines jumped from 28.5% to 39.8%. This means more people now have the financial means to consider buying mid-range housing. It's not just about having more money; it's about having the confidence to invest in a home.
Job stability is a big part of this confidence. In 2021, many middle-income earners in the Philippines had permanent jobs. This job security gives them the peace of mind to think about buying property, knowing they have a steady income to support such a purchase.
Urbanization is also fueling this demand. Cities like Iloilo and Roxas are buzzing with new infrastructure projects. As people flock to these urban areas for better job opportunities and amenities, the need for housing naturally increases.
Additionally, the Philippine Statistics Authority has noted a drop in poverty rates, which means more people are climbing into the middle class. This shift means a larger segment of the population can now afford mid-range housing, further boosting demand.
With these factors in play, it's clear that the growing middle class in Panay will lead to increased demand for mid-range housing.
Sources: Asia News Network, Manila Bulletin, Eurasia Review, PPP Center
8) Aklan’s rental yields will increase with more tourists and rising short-term rental demand
Rental yields in Aklan are set to rise thanks to a surge in tourists and a booming short-term rental market.
In 2023, Boracay Island, a hotspot in Aklan, welcomed 2.15 million tourists, with a noticeable jump in local visitors compared to the previous year. This momentum carried into 2024, with 172,913 tourists arriving in just January, showing a strong and growing interest in the area.
Short-term rentals are thriving, especially those with unique amenities, which are seeing higher occupancy rates. This trend is expected to continue into 2025, echoing pre-pandemic patterns. Properties in high-demand spots like Aklan are maintaining high average daily rates, even during market ups and downs, proving that premium pricing is achievable.
Government reports and media coverage highlight Aklan's allure as a tourist destination, with forecasts predicting over 2.3 million tourists in 2024. This optimism is likely to spur more investment in infrastructure and tourism projects, boosting the area's charm and supporting the demand for short-term rentals.
Investors are eyeing Aklan, anticipating that the influx of tourists will continue to drive up rental yields. The local government is also keen on enhancing the tourist experience, which could further increase the area's attractiveness for short-term stays.
Sources: Panay News, Beyond Pricing, Manila Standard
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.
9) Iloilo City will see higher rental yields as demand for urban living rises
Rental yields in Iloilo City are set to rise as more people flock to urban living.
With a steady population growth of 1.63% in 2024 and 1.65% in 2023, Iloilo City is becoming a hotspot for those seeking new opportunities. This uptick in residents means a higher demand for housing and rental properties, making it a promising market for potential investors.
Urban migration is another driving force. People are leaving rural areas, drawn by the allure of city life and the rising costs of living in the countryside. This shift is expected to continue, further increasing the need for rental spaces in Iloilo City.
Adding to the city's appeal, large outsourcing firms are setting up shop, bringing a wave of job opportunities. This influx of employment is a magnet for workers who will need places to live, thus boosting the rental market.
Infrastructure is also on the rise, with projects like the Iloilo Business Park and the Atria Park District enhancing the city's livability. These developments not only improve the quality of life but also make Iloilo City more attractive to potential renters.
As these factors converge, the demand for rental properties in Iloilo City is expected to grow, making it a prime location for property investment.
Sources: Inquirer, Macrotrends, Global Property Guide
10) Rural areas in Antique will gain appeal as remote work becomes more common
Rural areas in Antique are becoming more attractive for remote work due to several key developments.
In 2023, the Department of Information and Communications Technology in the Philippines teamed up with Stellarsat Solutions Inc. and Kacific Broadband Satellites to bring high-speed internet to remote provinces, including those in Panay Island. This move is a game-changer, bridging the digital divide and making it easier for remote workers to stay connected.
Rising property prices in urban centers are pushing younger adults to look for more affordable housing options in rural areas. This trend is noticeable in places with high natural amenities, where housing prices have surged since the pandemic. As a result, rural areas like Antique are becoming more appealing to those seeking a cost-effective lifestyle.
The Philippine government is also backing rural development projects, like the Philippine Rural Development Project, which aims to boost rural incomes and enhance farm and fishery productivity. This makes rural areas more attractive for remote workers. The government's investment in infrastructure, including roads and bridges, further supports this shift.
With these developments, Antique is poised to become a hotspot for remote workers looking for a blend of affordability and connectivity. The combination of improved internet access and government support is transforming these rural areas into viable options for those who can work from anywhere.
As remote work becomes more common, the appeal of rural living in Antique is only set to grow, offering a unique lifestyle that balances work and leisure in a picturesque setting.
Sources: TotalTele, Cooper Center, World Bank
11) Rural property prices may dip slightly as urban migration persists
More people are moving from rural areas to cities these days.
In the Philippines, for instance, the net migration rate in 2023 was negative, meaning more folks are leaving the countryside than moving in. This shift is often because cities offer more job opportunities and better living conditions. Take Panay Island, where this trend is noticeable, leading to a dip in demand for rural properties.
During the pandemic, there was a brief surge in interest for rural homes as people craved more space. But now, with rising interest rates, buying homes has become pricier, cooling off that interest. This means fewer buyers in rural areas, nudging property prices down a bit.
Urban spots like Iloilo City on Panay Island are becoming hotspots due to their better infrastructure and economic opportunities. This urban magnetism pulls people away from rural zones, further shrinking the demand for countryside homes. When interest wanes, prices tend to follow suit.
As rural populations dwindle, as seen in the Philippines' migration trends, property prices can take a hit. Fewer people mean less demand for housing, leading to homes lingering on the market and prices dropping.
Sources: Macrotrends, Wikipedia
Get fresh and reliable information about the market in Panay Island
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
12) Aklan’s property prices will steadily rise due to tourism-driven demand
The real estate market in Aklan is set for a steady price increase, thanks to the booming tourism demand.
In 2023, Boracay Island, a major tourist magnet in Aklan, attracted nearly 1.8 million visitors. This shows the island's strong pull, even with a slight dip from the previous year. The constant stream of tourists underscores Boracay's lasting charm.
With more international and domestic flights landing at Kalibo and Caticlan airports, Aklan has become more accessible than ever. This ease of travel is expected to draw even more tourists, fueling the demand for vacation homes and rental properties. Real estate developments are popping up to cater to this growing interest.
The government is also pushing for sustainable tourism in Aklan, which is likely to attract more tourists and investors. These initiatives are making Aklan a hot spot for both local and foreign real estate developers. As the area gains popularity, land prices near attractions like Boracay are climbing, signaling a keen interest in real estate investments.
Investors are eyeing Aklan not just for its beauty but for its potential. Rising land prices reflect this growing interest, especially in areas close to tourist attractions. The combination of increased accessibility, government support, and developer interest paints a promising picture for Aklan's real estate market.
As Aklan continues to draw attention, the real estate market is poised for growth. Tourism-driven demand is the key driver, making it an exciting time for potential buyers and investors looking to tap into this vibrant market.
Sources: Inquirer Business, Inquirer News
13) Remote work trends will boost interest in properties with home office spaces
Remote work is reshaping how we choose our homes.
In 2023, 12.7% of full-time employees worldwide were working from home, making it a regular part of life. This shift is pushing more people to look for homes that can double as workspaces. In the Philippines, remote work has exploded, with a 78% increase from 2018 to 2022 and another 60% jump in early 2023. On Panay Island, this trend is clear as more remote workers hunt for homes with dedicated office spaces.
These homes often feature flexible layouts, perfect for setting up a home office. By 2023, 58% of people globally could work from home at least part of the week. This flexibility has sparked a rush for homes with functional office spaces. In 2024, nearly 60% of the workforce was working remotely at least part-time, further boosting interest in properties with home office amenities.
Sources: Remotify, The McLemore Group, Outsource Accelerator
14) Smart home technology will be a major selling point for properties in Iloilo City
Smart home technology is gaining traction in the Philippines, with more people embracing these innovations each year.
Filipinos are increasingly interested in home automation for its convenience, efficiency, and security. Imagine controlling your lights, thermostat, and security system all from your phone or with a simple voice command. This is becoming a reality for many, as energy-efficient systems and integrated lighting top the wish lists of potential buyers.
In Iloilo City, the property market is seeing a shift. Tech-savvy millennials are entering the scene, and they’re not just looking for any home—they want smart homes. These buyers are ready to invest more for properties equipped with the latest technology, making smart features a hot commodity.
Homes with advanced tech features are not just trendy; they’re financially rewarding. Properties with smart home technology can sell for 5-10% more than those without. This makes them a valuable asset in competitive markets, especially in places like Iloilo City where the demand is rising.
By 2026, it’s expected that over 4 million consumers in the Philippines will own smart home devices. This will push the penetration rate to around 16%, showing a clear trend towards tech-enhanced living spaces.
As more people experience the benefits of smart homes, the demand for these features will only grow, making them a key selling point for properties in Iloilo City.
Sources: MarkNtel Advisors, Richard Overvold, Statista
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.
15) Capiz rental market will slightly decline as property availability increases
In 2023 and 2024, Capiz experienced a boom in construction, especially in Tapaz.
With projects like the Super Health Center and multi-purpose homes now complete, more rental properties are hitting the market. The local government has been proactive, offering incentives to developers, which has further fueled the construction of new residential complexes.
This supportive atmosphere has resulted in an increase in rental listings online as these projects wrap up. As more properties become available, rental prices are starting to dip slightly.
This trend is typical in real estate when supply outpaces demand, leading to a softening of the rental market. For potential buyers, this means more options and possibly better deals.
Insiders note that the rental market in Capiz is expected to see a slight decline as the inventory continues to grow. This could be a great opportunity for those looking to invest in property.
With the current trajectory, Capiz is becoming a more attractive place for property investment, thanks to its expanding infrastructure and supportive policies.
Sources: Daily Guardian, Illume Property Management
16) Property interest in Capiz will surge due to new agricultural investments
Capiz is catching the eye of property buyers thanks to a surge in agricultural investments.
In 2023, the Philippine Statistics Authority noted a 6.8% GDP increase in Capiz, largely driven by agriculture. This economic upswing is making the region more appealing for those looking to buy property. As more people eye agricultural land, prices are climbing. For example, a 3.55-hectare farm in Roxas City was listed at ₱149 million, showing how land values are rising.
The government is sweetening the deal with incentives to lure investors and farmers, which is boosting property demand. Infrastructure improvements, like better roads and storage facilities, are also playing a part in this growth, making it easier to transport goods. Media outlets are buzzing about Capiz as a new agricultural hotspot, which is likely to draw even more interest from investors and property buyers.
The local government is pushing to brand Capiz as an agricultural center, with plans for more funding in agricultural research and development. This strategy is expected to make the area even more attractive. With these developments, Capiz is shaping up to be a promising place for property investment.
Sources: One Propertee, Philippine Statistics Authority
17) New property tax rules will make rural investments more appealing
Changes in property tax regulations are making investing in rural areas more attractive, especially on Panay Island.
The Iloilo Provincial Investment and Incentives Code of 2015 is a game-changer, offering fiscal and non-fiscal incentives to investors. This code aims to boost sectors like agri-business, tourism, and manufacturing by encouraging the use of local resources while also protecting the environment.
Local governments are increasingly lowering property tax rates in rural areas to draw in more investments. While specific data for Panay Island isn't available, this strategy is common and helps in capturing increased property values, making rural areas more appealing to investors.
There's a noticeable trend of people moving from urban to rural areas in the Philippines, driven by economic factors. This urban-to-rural migration suggests a growing interest in rural living, and the tax benefits provided by local governments make these areas even more attractive.
As more people consider rural living, the potential for increased property transactions in these areas rises. Even without direct statistical data, the shift in population dynamics indicates a potential boom in rural property markets.
Sources: Iloilo Provincial Investment and Incentives Code of 2015, Internal Migration in the Philippines, Impact of Rising Property Taxes on Communities
Don't buy the wrong property, in the wrong area of Panay Island
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
18) Demand for eco-friendly homes will rise with increasing environmental awareness
Eco-friendly homes are becoming increasingly popular as people grow more conscious of environmental issues.
In the Philippines, there's been a noticeable shift in the construction industry, with builders opting for sustainable materials like bamboo and recycled plastic bricks. These choices not only reduce the ecological footprint of buildings but also align with global climate change efforts. This trend is evident in projects like the Pueblo de Panay Township, which integrates residential, commercial, and recreational spaces to promote a greener lifestyle.
Homebuyers today are showing a strong preference for properties that minimize carbon footprints and utilize renewable energy sources. This shift is particularly pronounced among younger demographics, including Gen Z, who are driving the demand for green homes. The real estate market is responding, with eco-friendly developments becoming more common and serving as models for sustainable community living.
Government incentives and rebates have made renewable energy solutions, such as solar panels, more accessible and affordable for homeowners. This financial support, coupled with the growing media focus on sustainable living, has further fueled the demand for eco-friendly homes. Social media trends are also playing a role, highlighting eco-friendly practices and encouraging more people to consider green living.
Real estate market reports indicate that green properties are commanding a premium due to their lower operating costs and environmental benefits. This premium reflects the value that buyers place on sustainability and the long-term savings associated with eco-friendly homes. As a result, developers are increasingly incorporating green features into their projects to meet this demand.
As environmental awareness continues to grow, the appeal of eco-friendly homes is expected to rise, making them a smart investment for the future.
Sources: Billion Bricks, Panay News, The Madrona Group, Times Property
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.