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Property prices in the Philippines are rising nationwide at 6.7% annually, with the strongest growth happening outside Metro Manila.
As we reach mid-2025, the Philippine real estate market shows robust performance driven by infrastructure development, OFW remittances exceeding $37 billion, and expanding economic opportunities in emerging cities like Cebu, Davao, and Iloilo.If you want to go deeper, you can check our pack of documents related to the real estate market in the Philippines, based on reliable facts and data, not opinions or rumors.
Philippine property prices increased 6.7% year-on-year in 2024, with areas outside Metro Manila growing faster at 7.4% compared to Manila's 2.8% growth.
Single-detached homes and duplexes are seeing the highest appreciation, while infrastructure projects are driving 3.6-15.4% annual price increases in affected regions.
| Indicator | Value (June 2025) | Trend |
|---|---|---|
| Metro Manila luxury condo price | PHP 203,360/sqm | -0.7% YoY |
| National housing index | PHP 11,252/sqm | +6.7% YoY |
| Outside NCR growth | 7.4% annually | Accelerating |
| OFW remittances impact | $37.2 billion (2023) | Strong support |
| Infrastructure boost areas | 3.6-15.4% growth | High appreciation |
| Foreign lease extension | 99 years (from 50) | New opportunity |
| ASEAN affordability rank | 9th in Asia | Relatively affordable |
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.
How much have Philippine property prices increased over the past year?
Philippine residential property prices increased by 6.7% year-on-year in Q4 2024, marking a continuation of the post-pandemic recovery.
This growth rate sits comfortably between the 6.5% recorded in 2023 and the 7.7% achieved in 2022, indicating a stable upward trend in the Philippine property market as of June 2025. The sustained growth reflects strong domestic demand despite global economic uncertainties.
Metro Manila's luxury condominium market tells a different story, with prices declining by 0.7% year-on-year to PHP 203,360 per square meter in Q1 2025. This marks the first decline in Manila's premium segment since Q1 2022, suggesting a cooling in the capital's high-end market.
The national housing index reached PHP 11,252 per square meter by March 2025, representing steady appreciation across various property types and locations. This figure encompasses everything from affordable housing to luxury developments across the archipelago.
Property price growth has been remarkably consistent over recent years, with annual increases averaging between 6% and 8% since the market rebounded from its pandemic lows.
Where in the Philippines are property prices rising fastest right now?
Areas outside Metro Manila are experiencing significantly faster price growth, with properties appreciating at 7.4% year-on-year compared to Manila's modest 2.8% increase.
Emerging cities are leading the charge in property price appreciation. Iloilo, Bacolod, Cebu, and Davao are seeing particularly strong growth driven by business expansion, infrastructure development, and increasing economic activity. These provincial urban centers are attracting both local and foreign investors seeking higher returns.
Infrastructure project areas are experiencing exceptional growth rates. Properties near new expressways, airports, and transit lines in provinces like Cavite, Laguna, and Bulacan are seeing annual price increases ranging from 3.6% to 7.2% for house-and-lot developments, with lot-only properties appreciating up to 15.4% annually.
Masterplanned communities located near major infrastructure projects have recorded remarkable value appreciation of 86% to 181% since their launches in the late 2010s. These developments benefit from improved accessibility and growing commercial activity.
It's something we develop in our Philippines property pack.
Which property types are experiencing the biggest price surge in 2025?
Duplex houses lead all property types with an extraordinary 85.9% year-on-year price increase, though this comes from a relatively small market base.
| Property Type | 2024 YoY Change | Q4 2024 QoQ Change | Market Trend |
|---|---|---|---|
| Duplex Houses | +85.9% | +108% | Surging |
| Single Detached/Attached | +12.8% | +6.1% | Strong |
| Condominium Units | +5.1% | +6.0% | Moderate |
| Townhouses | -3.4% | +0.3% | Declining |
| Lot-only (infrastructure areas) | +15.4% | N/A | Very Strong |
Single detached and attached houses show consistent strong performance with 12.8% annual growth, particularly popular among OFW families and those seeking larger living spaces outside Metro Manila. This property type benefits from sustained demand and limited supply in prime locations.
Condominium units posted moderate gains of 5.1% annually, with renewed interest driven by developer promotions, flexible payment schemes, and returning urban workers. The condo market is recovering from pandemic-era oversupply concerns.
Townhouses are the only property type experiencing price declines, falling 3.4% year-on-year in 2024, though showing signs of stabilization with a slight 0.3% quarterly increase in Q4 2024.
What's the current average property price per square meter in major Philippine cities?
Metro Manila's central business districts command the highest prices, with luxury condominiums averaging PHP 203,360 per square meter as of Q1 2025.
The national average housing index stands at PHP 11,252 per square meter as of March 2025, though this figure encompasses a wide range of property types and locations. Urban centers outside Manila typically range from PHP 25,000 to PHP 80,000 per square meter depending on the specific location and property type.
Cebu City, the country's second-largest urban center, sees condominium prices ranging from PHP 80,000 to PHP 150,000 per square meter in prime areas. Davao City offers more affordable options, with prices typically between PHP 40,000 and PHP 90,000 per square meter.
Emerging cities like Iloilo and Bacolod offer exceptional value, with quality properties available from PHP 25,000 to PHP 60,000 per square meter. These cities are experiencing rapid development but still maintain relatively affordable price points.
Tourist destinations command premium prices, with properties in Boracay, Palawan, and prime Batangas locations often exceeding PHP 100,000 per square meter for beachfront or resort-area properties.
How do current Philippine property prices compare to 5 years ago?
Philippine property prices have recovered strongly from their pandemic lows and now sit well above pre-pandemic levels across most market segments.
The market experienced a sharp correction in 2020, with prices falling by 14.55% inflation-adjusted in Q3 2020 during the height of pandemic restrictions. However, the recovery has been swift and sustained, with annual price increases averaging 6-8% in recent years.
Properties in areas benefiting from infrastructure development and business expansion have seen the strongest recovery. Some masterplanned communities near major infrastructure projects have appreciated by 86-181% since their launches in the late 2010s.
Metro Manila CBD luxury condos, which peaked before the pandemic, are still finding their footing with a slight 0.7% year-on-year decline in Q1 2025. This represents the only segment that hasn't fully recovered to pre-pandemic price levels.
Overall, most Philippine property owners who purchased five years ago have seen substantial appreciation in their investments, particularly those who bought during the 2020 market dip or invested in emerging provincial cities.
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What are property price forecasts for the Philippines through 2026?
Analysts expect continued growth in Philippine property prices through 2026, particularly in regions with major infrastructure projects and in affordable to mid-market segments.
Short-term forecasts for 2025-2026 predict annual price increases of 2.2% to 7% depending on location and property type. Areas near infrastructure developments are expected to outperform, with potential appreciation of 8-15% annually in hot spots like Cavite, Laguna, and Bulacan.
The "Build Better More" infrastructure program, with P1.54 trillion allocated in 2024, will continue driving property values in newly connected regions. Properties near new expressways, airports, and mass transit systems are positioned for the strongest gains.
Metro Manila's property market is expected to see more modest growth of 2-4% annually through 2026, as the market digests current supply and adjusts to hybrid work arrangements. The focus is shifting from CBD locations to suburban areas with good connectivity.
Provincial cities like Cebu, Davao, Iloilo, and Bacolod are projected to maintain robust growth of 5-8% annually, supported by economic decentralization, growing BPO sectors, and improving infrastructure.
What economic factors are currently driving Philippine property prices up?
OFW remittances totaling $37.2 billion in 2023 provide crucial liquidity to the Philippine property market, particularly supporting purchases in urban and tourist areas.
Infrastructure spending under the "Build Better More" program is transforming accessibility and connectivity, with P1.54 trillion allocated in 2024 alone. This massive investment is creating new growth corridors and dramatically improving property values in previously underserved areas.
Inflation and rising construction costs are pushing up property prices, though wage growth and sustained remittances are helping maintain affordability for many buyers. Construction material costs have increased 15-20% since 2022, directly impacting new property prices.
Interest rate fluctuations affect borrowing costs, but strong cash buyer participation, particularly from OFW families and investors, helps maintain market momentum. Approximately 40-50% of property transactions involve cash or minimal financing.
Rapid urbanization continues driving demand, with an estimated 1.5 million Filipinos moving to cities annually. This urban migration particularly benefits emerging cities outside Metro Manila.
How will recent foreign ownership law changes impact property prices?
The House and Senate approval of bills extending maximum lease periods for foreigners from 50 to 99 years marks a significant shift in Philippine property accessibility.
This legislative change, finalized in late 2024, is expected to attract more long-term foreign investment, particularly in tourism hubs and business centers. Developers anticipate increased demand from foreign retirees, digital nomads, and investors seeking tropical property holdings.
Tourist destinations like Boracay, Palawan, Siargao, and Batangas are likely to see the most immediate impact, with property values in these areas potentially appreciating 10-15% above normal growth rates as foreign interest materializes.
The extended lease period makes Philippine property more competitive with regional alternatives like Thailand and Malaysia, which have long offered similar or better terms for foreign property access. This could redirect some Southeast Asian property investment to the Philippines.
It's something we analyze in depth 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.
Which areas will see the highest property price growth due to infrastructure?
Properties near new infrastructure projects are experiencing annual price increases of 3.6% to 7.2% for house-and-lot developments and up to 15.4% for lot-only properties.
1. **Cavite** - The Cavite-Laguna Expressway (CALAX) and upcoming subway extension are transforming accessibility, with property prices in affected areas rising 8-12% annually.
2. **Bulacan** - The New Manila International Airport and North-South Commuter Railway are driving exceptional growth, with some areas seeing 15-20% annual appreciation.
3. **Laguna** - Multiple expressway connections and proximity to industrial zones are pushing residential property values up 7-10% annually in key municipalities.
4. **Pampanga and Clark** - The Clark International Airport expansion and new railway connections are spurring 10-15% annual growth in surrounding residential areas.
5. **Cebu** - The new Cebu-Cordova Link Expressway and upcoming BRT system are boosting property values by 8-12% annually in connected areas.
6. **Davao** - Infrastructure improvements including the Davao Coastal Road and airport modernization are driving 6-9% annual appreciation.
7. **Rizal** - The Metro Manila Subway and multiple highway projects are creating new residential hotspots with 8-11% annual price growth.
How do Philippine property prices compare to other ASEAN countries in 2025?
The Philippines ranks 9th in Asia for property affordability with a price-to-income ratio of 22.2, making it more affordable than Vietnam, Thailand, and Singapore.
| Country | Price-to-Income Ratio | Asia Rank | City Centre Yield |
|---|---|---|---|
| Vietnam | 25.8 | 6th | 3.0% |
| Thailand | 25.2 | 7th | 2.9% |
| Singapore | 23.2 | 8th | 2.9% |
| Philippines | 22.2 | 9th | 3.0% |
| Malaysia | 20.5 | 11th | 3.2% |
| Indonesia | 14.9 | 15th | 6.2% |
| Cambodia | 18.7 | 13th | 5.8% |
Philippine property offers better value than many regional competitors, with Metro Manila prices significantly lower than Singapore, Bangkok, or Ho Chi Minh City for comparable properties. A luxury condo that costs $500,000 in Singapore might cost $150,000-200,000 in Manila's premier districts.
Gross rental yields in Philippine city centers average 3.0%, on par with Vietnam but lower than Indonesia's 6.2% or Cambodia's 5.8%. This reflects the Philippines' more mature and stable property market compared to frontier markets.
The recent extension of foreign lease terms to 99 years makes the Philippines more competitive with Thailand and Malaysia, which have historically offered better foreign ownership options. This legislative change could help the Philippines capture a larger share of regional property investment.
What are property market experts saying about long-term price trends?
Real estate professionals view the Philippine property market as fundamentally resilient, with strong domestic demand and infrastructure-driven growth supporting long-term appreciation.
Industry experts emphasize that properties near new infrastructure projects will significantly outperform the broader market. Colliers Philippines projects that areas within 2 kilometers of new transit stations could see values double within 5-7 years of operation commencement.
The shift toward suburban and provincial developments is seen as a lasting trend, not a temporary pandemic effect. Experts predict that emerging cities will continue attracting investment as businesses decentralize and remote work remains partially in place.
Sustainability and technology integration are becoming crucial factors in property valuation. Green buildings and smart home features are commanding 5-10% premiums and are expected to become standard in new developments by 2027.
Long-term demographic trends support continued price growth - the Philippines' young population (median age 25.7) and growing middle class ensure sustained housing demand through 2040 and beyond. We explore these dynamics further in our Philippines property pack.
Will the 2025 elections affect property price momentum?
Historical patterns show Philippine property markets typically see increased activity in pre-election periods as government spending rises.
The government has prioritized affordable housing and infrastructure in the lead-up to the 2025 elections, with increased budget allocations potentially accelerating project completions. This political cycle traditionally benefits property values in areas receiving infrastructure investment.
Election uncertainty might cause temporary slowdowns in luxury property transactions as high-net-worth individuals await policy clarity. However, the mass market and affordable housing segments typically remain resilient during election periods.
Post-election periods often see policy adjustments that can impact property markets. Foreign investment regulations, tax policies, and infrastructure priorities may shift depending on election outcomes, though major changes are unlikely given broad political consensus on economic development.
Real estate professionals advise that election cycles create buying opportunities for prepared investors, as temporary market hesitation can lead to better negotiating positions, particularly in the luxury segment.
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.
Yes, Philippine property prices are definitely going up, with nationwide growth of 6.7% annually and even stronger appreciation outside Metro Manila.
The combination of massive infrastructure spending, sustained OFW remittances, foreign ownership reforms, and rapid urbanization in provincial cities creates a compelling case for continued price appreciation through 2026 and beyond, making the Philippines an attractive property investment destination in Southeast Asia.
Sources
- Global Property Guide - Philippines Price History
- Trading Economics - Philippines Residential Property Prices
- BusinessWorld - Philippines Real Estate Infrastructure Impact
- PhilStar - Property Prices Rebound Q4
- Bangko Sentral ng Pilipinas - Residential Real Estate Price Index
- Numbeo - Property Investment Rankings Asia 2025
- Asian News Network - Foreign Land Lease Extension
- BambooRoutes - Philippines Real Estate Trends
- Colliers - Philippine Property Market Outlook 2025
- IQI Global - Philippines Real Estate Market 2025 Overview