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Iloilo City's property market shows compelling signs of being undervalued compared to other major Philippine cities, with prices ranging from ₱60,000 to ₱93,000 per square meter while similar markets like Cebu command ₱80,000 to ₱180,000.
The market demonstrates strong fundamentals with 85-92% occupancy rates, steady 4-7% annual price growth over the past decade, and significant infrastructure investments including airport expansions and business park developments that position Iloilo for continued appreciation.
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Iloilo property prices are significantly lower than comparable Philippine cities while showing strong growth fundamentals and infrastructure development.
The market offers attractive entry points for investors with healthy occupancy rates, growing demand from locals and OFWs, and upcoming infrastructure projects boosting long-term value prospects.
Metric | Iloilo City | Comparison to Other Cities |
---|---|---|
Price per sqm | ₱60,000-₱93,000 | Lower than Cebu (₱80K-₱180K), Manila (₱115K-₱203K) |
Annual Growth Rate | 4-7% per year | Above national average (5.5%) |
Rental Yield | 1.5-3.2% | Lower than Cebu (6-8%), Manila (5-7%) |
Occupancy Rate | 85-92% | Healthy demand indicators |
Pre-sale Rate | 60-80% | Strong investor confidence |
Population Growth | 2.3% projected | Above national urban average |
Buyer Composition | 65% local, 25% OFW, 10% foreign | Diverse demand base |

What are current property prices per square meter in Iloilo City versus other major Philippine cities?
Iloilo City residential properties currently range from ₱60,000 to ₱93,000 per square meter as of September 2025, with city center condominiums commanding the higher end of this range.
Cebu City properties cost significantly more at ₱80,000 to ₱180,000 per square meter for condominiums, while land averages ₱16,600 per square meter. Bacolod premium condos range from ₱88,000 to ₱230,000 per square meter, and Metro Manila prime condos in areas like Makati, Ortigas, and BGC cost ₱115,000 to ₱203,000 per square meter.
Land prices in Iloilo range from ₱6,000 to ₱13,500 per square meter for typical lots, which is comparable to Bacolod's ₱6,000 to ₱19,000 range but significantly lower than Cebu's average of ₱16,600 per square meter. This pricing structure makes Iloilo one of the most affordable major city markets in the Philippines while still offering urban amenities and growth potential.
The price differential represents a significant value opportunity, especially considering Iloilo's ongoing infrastructure development and urban expansion projects that typically drive property appreciation in Philippine markets.
How have property prices evolved in Iloilo over the past decade and what's the growth rate?
Iloilo property prices have demonstrated consistent annual growth rates of 4% to 7% per year over the last five to ten years, driven primarily by infrastructure improvements and urban migration patterns.
This growth rate closely trails Metro Manila and Cebu but exceeds the estimated nationwide average of approximately 5.5% per annum for regional Philippine markets. The steady appreciation reflects strong underlying market fundamentals including population growth, business development, and government infrastructure investment in the region.
The growth trajectory has been particularly pronounced since 2020, when major infrastructure projects including airport expansion and business park developments began accelerating property values across different segments of the Iloilo market.
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Looking ahead, market analysts project continued above-average appreciation as infrastructure projects reach completion and urban migration continues from rural Panay and neighboring provinces.
What are current rental yields in Iloilo compared to Cebu and Manila?
Iloilo City gross rental yields for city center condominiums currently stand at 1.5% to 3.2%, with higher yields typically available on properties located outside the central business district or with lower capital values.
Cebu City significantly outperforms Iloilo with rental yields generally hovering between 6% to 8%, especially for centrally located studio and one-bedroom units that benefit from high rental demand from BPO professionals and university students.
Metro Manila rental yields range from 5% to 7% but vary widely by district and property type, with some premium locations offering lower yields due to higher capital appreciation expectations.
The lower rental yields in Iloilo reflect the market's current focus on capital growth rather than income generation, which is typical for emerging markets experiencing rapid infrastructure development and urban expansion.
What are average occupancy rates for residential and commercial properties in Iloilo?
Occupancy rates for residential condominiums and commercial spaces in established prime Iloilo locations currently range from 85% to 92% as of September 2025, indicating healthy demand across both property sectors.
Mixed-use developments and modern commercial hubs achieve the highest occupancy rates within this range, benefiting from integrated amenities and convenient access to business districts and transportation networks.
Newer developments and properties in more peripheral locations typically see lower occupancy rates, closer to 70% to 80%, as these markets develop their tenant base and establish transportation connections to main employment centers.
These occupancy levels compare favorably to other emerging Philippine cities and suggest sustainable demand supporting current pricing levels and future rental income potential for investors.
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How many new projects are in development and what are pre-sale rates?
Iloilo currently has over a dozen significant residential and commercial projects in various stages of development, including mixed-use towers, business parks, and new subdivision developments across the metropolitan area.
Pre-sale rates for these projects consistently exceed 60%, with many in-demand launches approaching 80% pre-sold status before completion, demonstrating strong investor confidence and market demand.
The strong pre-sale performance is driven by combined demand from local professionals, overseas Filipino workers seeking investment properties, and increasing interest from foreign buyers attracted by infrastructure improvements and government investment incentives.
Major developers including Megaworld, Ayala Land, and Vista Land are leading the pipeline with mixed-use communities that integrate residential, commercial, and office components to serve the growing urban population.
What major infrastructure developments will impact Iloilo property values?
Iloilo International Airport completion and expansion represents the most significant infrastructure development, improving connectivity for both business and tourism that directly benefits property values across the metropolitan area.
Major port facility upgrades are enhancing Iloilo's position as a regional trade and logistics hub, supporting commercial property demand and overall economic growth that drives residential market expansion.
Road infrastructure improvements include highway widening projects, new flyovers, and bridge construction linking Iloilo City to broader Panay Island and national transportation networks, reducing travel times and expanding accessible development areas.
Business park expansions led by Megaworld, Ayala, and Vista Land continue creating employment centers that generate residential property demand and support long-term market appreciation across different price segments.
All infrastructure projects have completion timelines within the next five years, with strong positive impact projections for property values and overall investor confidence in the Iloilo market.
What is the current buyer composition between locals, OFWs, and foreign investors?
Local professionals and business owners represent approximately 65% of current property demand in Iloilo, forming the stable base of the residential market with steady employment and financing access.
Overseas Filipino Workers contribute approximately 25% of buyer demand, primarily seeking investment properties for rental income and retirement planning, with many originating from the Iloilo region originally.
Foreign buyers account for the remaining 10% but represent a growing segment, mainly consisting of Chinese, Korean, and North American retirees attracted by ongoing infrastructure upgrades and government incentives for foreign investment.
The diverse buyer composition provides market stability and reduces dependence on any single demand source, while the growing foreign interest indicates increasing international recognition of Iloilo's investment potential.
What are population growth and urbanization trends for Iloilo?
Iloilo City has maintained steady population growth averaging just over 2% annually over the past decade, reflecting consistent urban migration from rural areas and natural population increase.
Urbanization trends are accelerating significantly, with 2025-2030 projections estimating annual population increases above 2.3%, driven primarily by in-migration from rural Panay Island and neighboring provinces seeking employment opportunities.
The urban expansion is supported by business park developments, improved transportation infrastructure, and educational institutions that attract both residents and temporary populations contributing to property demand.
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This population growth trajectory supports continued residential property demand and suggests sustainable market expansion for both owner-occupied and investment properties in the medium to long term.

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How do property taxes and transaction costs compare with other Philippine cities?
Cost Component | Iloilo Rate | Comparison Notes |
---|---|---|
Property Tax | 1.5% of assessed value | Similar to other Philippine cities |
Transfer Fees | 0.5%-1% | Standard across regions |
Documentary Stamp Tax | 1.5% | National standard rate |
Down Payment (Developer) | 10%-20% | Competitive with other markets |
Installment Terms | Up to 36 months | Flexible payment schemes available |
What are current mortgage requirements and interest rates in Iloilo?
Local and international banks operating in Iloilo require loan-to-value ratios of 70% to 80% for qualified borrowers, with proof of stable employment and clear property documentation as standard requirements.
Prevailing interest rates range from 7.5% to 9% per annum for fixed-rate periods of 1 to 5 years, after which rates are typically repriced based on prevailing market conditions.
Foreign buyers face stricter lending criteria and may be limited to condominium purchases with additional equity requirements, reflecting standard Philippine banking regulations for non-resident borrowers.
Banks typically require debt-to-income ratios below 30% and may require higher down payments for investment properties compared to owner-occupied purchases, following standard Philippine lending practices.
What are the top three investment risks in Iloilo real estate currently?
1. **Oversupply Risk in Condominium Segment**: Rapid development of pre-selling condominium towers could create market oversupply if urban migration and population growth underperform current projections, potentially impacting both sales velocity and rental rates.2. **Infrastructure Development Delays**: Any significant slowdown in major road, airport, or business park projects could dampen short-term capital appreciation expectations and delay the anticipated economic benefits driving current investment interest.3. **Economic Downturn Vulnerability**: The market remains vulnerable to global remittance contractions affecting OFW buyers or local business closures impacting employment, which could affect both property sales and rental market performance.4. **Limited Liquidity in Resale Market**: Compared to Manila and Cebu, Iloilo's secondary market has fewer transactions, potentially making property resale more challenging and time-consuming for investors seeking exits.5. **Currency and Interest Rate Fluctuation**: Foreign investors face peso depreciation risks, while all buyers are exposed to potential interest rate increases that could affect affordability and financing costs.What do recent market reports from major consultants say about Iloilo?
Recent published outlooks by leading property consultants including Colliers, JLL, and Leechiu consistently highlight Iloilo as an emerging top-tier investment destination within the Philippine real estate market.
The reports cite robust infrastructure upgrades, continued urban population growth, and strong developer pipeline as key growth drivers supporting positive market outlook for 2025-2026 and beyond.
Market analysts generally forecast continued above-average price appreciation, moderate-to-high occupancy rates, and stable rental demand over the next 3 to 5 years, supported by infrastructure completion and business development.
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The consensus view positions Iloilo as offering attractive value relative to more established markets like Manila and Cebu, while providing similar growth potential with lower entry costs for both local and international investors.
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.
Iloilo's property market demonstrates clear undervaluation compared to peer Philippine cities, with prices 30-50% below comparable markets while showing strong fundamental growth drivers.
The combination of infrastructure development, steady population growth, and diverse buyer demand creates favorable conditions for both capital appreciation and rental income potential over the medium term.
Sources
- Average House Price Philippines
- Numbeo Property Investment Iloilo
- Dot Property Iloilo Houses
- Average Price per SQM Negros Island
- One Propertee Iloilo Lots
- Cebu Property Market
- Investasian Philippines House Cost
- Bacolod City Properties Price Monitoring
- Global Property Guide Philippines
- Reddit Philippines Expats Iloilo