Where do expats buy property in Philippines?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Philippines. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Philippines real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manila, Cebu City, and Davao. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Where do most expats actually end up buying property in the Philippines right now?

Most expats concentrate their property purchases in Metro Manila, specifically in Makati, Bonifacio Global City (BGC/Taguig), and Quezon City, as these areas offer the best business infrastructure and expat communities.

Cebu City ranks as the second most popular destination, attracting expats with its combination of business opportunities and lifestyle amenities. Davao City follows closely, particularly appealing to expats seeking safety and lower property costs compared to Manila.

Secondary markets like Iloilo and Baguio are gaining popularity among expats who prioritize safety and livability over proximity to major business centers. Resort areas such as Boracay and parts of Pampanga attract retirees and those seeking lifestyle properties with rental income potential.

It's something we develop in our Philippines property pack.

What are the average price ranges in those areas, both for condos and houses?

Location	Studio Condo	2BR Condo	House Price/Sqm
Makati (prime)	₱6-8M	₱15-25M	₱115,000-203,000
BGC/Taguig	₱5-7M	₱12-20M	₱115,000-203,000
Quezon City	₱4-5M	₱10-15M	₱75,000-120,000
Cebu City	₱3-5M	₱8-12M	₱60,000-120,000
Davao City	₱2-3M	₱5-8M	₱30,000-80,000
Iloilo	₱2M+	₱5M+	₱10,000+
Boracay	₱3-4M	₱7-10M	₱70,000-120,000

Which neighborhoods or cities are considered the safest and most reliable for foreign buyers?

BGC (Bonifacio Global City) in Taguig stands out as the safest and most expat-friendly area, with 24/7 security, organized city planning, and strong property management systems.

Makati, particularly the Central Business District area, offers excellent security infrastructure and has established systems specifically designed to accommodate foreign residents and investors. Eastwood City in Quezon City provides another secure option with its master-planned development and comprehensive security protocols.

In Cebu, Ayala-developed properties and the IT Park area maintain high security standards and cater specifically to international buyers. Davao City consistently ranks as one of the safest major cities in the Philippines, with low crime rates and expat-friendly local government policies.

Provincial areas like Iloilo and Baguio offer excellent safety records, though with fewer expat services compared to major metropolitan areas.

Are there specific locations where property values are consistently appreciating for expats?

Metro Manila's core areas - Makati, BGC, and Ortigas - demonstrate the most consistent property appreciation, with annual increases typically ranging from 5-8% in prime locations.

Cebu City shows robust appreciation potential, particularly in areas near the IT Park and Ayala Center, driven by both local economic growth and increasing expat demand. Iloilo has emerged as a strong appreciation market, with property values rising steadily as infrastructure development accelerates.

Davao City offers significant long-term growth prospects, especially in emerging neighborhoods as the city continues its rapid development. BGC remains the most reliable for consistent appreciation, supported by continuous infrastructure improvements and high demand from multinational companies.

Areas near major infrastructure projects, such as new airports or transportation hubs, typically show above-average appreciation rates for expat-focused properties.

What types of properties (condos, houses, land) are expats legally allowed to buy?

Foreigners can directly own condominium units, provided that foreign ownership in any single condominium project doesn't exceed 40% of the total floor area or units.

Direct land ownership is prohibited for foreigners, but they can lease land for up to 50 years with renewable terms. Houses and buildings can be purchased by foreigners, but only if built on leased land or through a registered Philippine corporation structure.

The corporation route requires that Filipino citizens hold at least 60% ownership, though this structure carries additional legal complexities and ongoing compliance requirements. Married foreigners can have property titled in their Filipino spouse's name, though this provides limited legal protection.

As of September 2025, most expat purchases focus on condominiums due to the direct ownership benefits and simpler legal processes involved.

How much are the typical property taxes, condo fees, and maintenance costs in these areas?

Cost Type	Metro Manila	Provincial Cities	Notes
Property Tax	1-2% of assessed value	0.5-1.5% of assessed value	Based on government assessment, not market value
Condo Fees	₱70-300+ per sqm/month	₱40-150 per sqm/month	Higher for luxury projects with amenities
HOA Fees	₱2,000-8,000/month	₱1,000-4,000/month	For house and lot communities
Basic Maintenance	₱1,000-3,000/month	₱800-2,000/month	Regular upkeep, repairs, utilities
Insurance	0.1-0.3% of property value	0.1-0.2% of property value	Fire and natural disaster coverage

What financing or mortgage options are available to foreigners, and what are the interest rates?

Mortgage options for foreigners are extremely limited, with only select major banks like BPI, Metrobank, and BDO offering loans to non-Filipino buyers under strict conditions.

Foreign borrowers typically need a Filipino co-borrower, permanent residency status, or substantial income documentation from Philippine sources. Interest rates for foreigners start around 6-8% per year for fixed periods of 1-5 years, then convert to floating rates.

Most banks require down payments of 20-30% minimum for foreign borrowers, compared to 10-20% for Filipino citizens. Loan terms are typically limited to 15-20 years maximum, shorter than the 25-30 years available to local buyers.

Due to these financing restrictions, approximately 85% of expat property purchases in the Philippines are completed with cash payments rather than mortgage financing.

It's something we develop in our Philippines property pack.

Which cities or islands have the strongest rental demand from other expats or tourists?

Metro Manila leads rental demand, with Makati, BGC, and Ortigas commanding the highest rental rates due to concentration of multinational companies and expat professionals.

Cebu City shows strong rental demand from both business travelers and tourists, particularly for short-term rentals near IT Park and Ayala Center. Davao City maintains consistent rental demand driven by its growing BPO sector and influx of domestic migrants.

Tourism-focused areas like Boracay, Siargao, and parts of Palawan generate substantial short-term rental income, though seasonal fluctuations can be significant. Baguio attracts steady rental demand from both tourists and students attending local universities.

Clark in Pampanga benefits from proximity to Clark International Airport, creating demand from airline crews and international business travelers.

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.

What are the usual transaction costs, like notary, registration, and agent fees, when buying?

Total transaction costs for buyers typically range from 5-7% of the property purchase price, making cash flow planning essential for foreign buyers.

1. **Transfer Tax**: 0.5-1.5% of the property value, varying by location2. **Documentary Stamp Tax**: 1.5% of the purchase price or fair market value3. **Registration fees**: Approximately 0.25% of the property value4. **Notary fees**: 1-2% of the purchase price5. **Legal fees**: ₱30,000-100,000+ depending on transaction complexity

Real estate agent commissions of 3-5% are typically paid by the seller, not the buyer. However, buyers should budget for independent legal representation and due diligence costs, which can add ₱50,000-150,000 to the total transaction expense.

Capital gains tax of 6% applies if the seller has owned the property for less than five years, though this cost falls on the seller rather than the buyer.

How do infrastructure and amenities—like hospitals, schools, and airports—compare in top expat areas?

Metro Manila offers the highest concentration of international-standard amenities, with world-class hospitals like Makati Medical Center and St. Luke's, international schools, and direct access to Ninoy Aquino International Airport.

BGC and Makati feature the most comprehensive expat amenities, including international grocery stores, western restaurants, and English-speaking service providers. Cebu City provides good infrastructure with Cebu Doctors' Hospital, international schools, and Mactan-Cebu International Airport for regional travel.

Davao City offers solid infrastructure including Davao Doctors Hospital and several international schools, plus Davao International Airport for domestic connections. Provincial areas like Iloilo and Baguio provide adequate healthcare and education but fewer international-standard facilities.

Internet connectivity in major expat areas typically meets international standards, with fiber connections available in most modern developments.

What restrictions or requirements should foreigners know about before purchasing property?

The 40% foreign ownership rule in condominiums is strictly enforced, meaning projects may close to foreign buyers once this threshold is reached.

Foreigners must comply with Anti-Dummy Law provisions, which prohibit using Filipino citizens as fronts for property ownership. Violation can result in property forfeiture and legal penalties. All property purchases require proper documentation including Tax Identification Numbers (TIN) and, for some transactions, Alien Certificate of Registration (ACR).

Due diligence requirements include verifying clean titles, checking developer licenses with the Housing and Land Use Regulatory Board (HLURB), and confirming compliance with condominium corporation bylaws. Properties in certain strategic locations may require additional government approvals.

Foreign buyers should verify that their chosen property allows foreign ownership and isn't subject to special restrictions or covenants that could complicate future sales.

It's something we develop in our Philippines property pack.

What are the best resources or local contacts (agents, lawyers, government offices) to help an expat close a property deal safely?

Work exclusively with PRC-licensed real estate brokers who are accredited with the Professional Regulation Commission and have experience handling foreign buyer transactions.

1. **Major developers**: Ayala Land, SMDC, Megaworld, and DMCI provide established processes for foreign buyers2. **Law firms**: PJS Law, ACCRALAW, and SyCip Salazar Hernandez & Gatmaitan specialize in foreign real estate transactions3. **Government offices**: Registry of Deeds for title verification, HLURB for developer compliance checks4. **Due diligence services**: Professional title verification services and property inspection companies5. **Banking partners**: International banks with Philippine operations like HSBC, Citibank, and Standard Chartered

Professional due diligence should include title searches, developer background checks, project compliance verification, and review of condominium corporation documents. Avoid unlicensed brokers or developers without established track records in foreign buyer transactions.

Engage legal representation independent of the developer or seller to ensure your interests are properly protected throughout the transaction process.

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.

Sources

1. Torre Lorenzo - Emerging Cities Philippines Real Estate 2025
2. EmerHub - Buying Property in the Philippines as a Foreigner
3. InvestAsian - Philippines Property Investment Guide
4. BambooRoutes - Average Price Condo Philippines
5. Own Property Abroad - Philippines Real Estate Locations
6. Expatis - Housing in the Philippines for Expats
7. Minami Residences - Philippines Real Estate Investment Locations
8. CrowdSq - Top 5 Cities for Real Estate Investment Philippines
9. Buy Sell Lease - Best Cities for Real Estate Investment Philippines
10. BambooRoutes - Average House Price Philippines