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
Wondering what's happening with property prices in the Philippines right now?
This article breaks down the current housing prices, recent trends, and forecasts for the Philippine real estate market in 2026 and beyond.
We update this blog post regularly to keep the data fresh and relevant.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in the Philippines.
Insights
- Houses in Metro Manila are appreciating nearly seven times faster than condos, with NCR houses up 5.8% versus just 0.8% for condos in the latest data.
- Metro Mindanao leads all Philippine regions in price growth at 5.5% year-on-year, outpacing even the National Capital Region.
- The Bay Area condo market in Metro Manila has vacancy rates exceeding 50%, making it one of the softest submarkets in the country.
- The Philippines' condo inventory overhang could take up to three years to clear, according to LPC research cited by BusinessWorld.
- BSP's policy rate sits at 4.5% as of the first half of 2026, down from previous highs, which has helped improve mortgage affordability for Filipino buyers.
- Townhouses and compact house-and-lot properties in near-metro areas are expected to deliver the best risk-adjusted returns over the next five years.
- OFW remittances, which reached $3.2 billion in October 2025 alone, continue to provide steady demand support for Philippine residential property.
- Infrastructure projects under the Build Better More program are reshaping property values, with areas near new rail and expressway connections seeing stronger buyer interest.
What are the current property price trends in the Philippines as of 2026?
What is the average house price in the Philippines as of 2026?
As of early 2026, the average transacting home price in the Philippines is roughly 6.2 million pesos (about $105,000 or €97,000), though this national figure blends expensive metro condos with more affordable provincial houses.
When you look at price per square meter, the nationwide blended average sits around 95,000 pesos per sqm ($1,610 or €1,490 per sqm), but this varies wildly by location, with NCR averaging about 160,000 pesos per sqm compared to 45,000 to 80,000 pesos per sqm in more provincial areas.
For most end-user purchases in the Philippines, the realistic price range covering roughly 80% of transactions falls between 3.5 million and 10 million pesos ($59,000 to $170,000 or €55,000 to €157,000), which reflects how the market caters heavily to middle-income Filipino families.
How much have property prices increased in the Philippines over the past 12 months?
Over the past 12 months, Philippine property prices have increased by approximately 2% to 4%, with a center estimate around 3% in nominal terms.
This growth varied significantly by property type and location, with NCR houses rising about 5.8% while NCR condos barely moved at 0.8%, and regional markets like Metro Mindanao posting gains of 5.5% year-on-year.
The single biggest factor behind this moderated price movement was the persistent condo supply overhang in Metro Manila, which limited sellers' pricing power even as lower interest rates improved buyer affordability.
Which neighborhoods have the fastest rising property prices in the Philippines as of 2026?
As of early 2026, the top three areas with the fastest rising property prices in the Philippines are Metro Mindanao (particularly Davao's Lanang and Bajada districts), Metro Cebu (especially IT Park, Lahug, and Cebu Business Park), and the Greater Manila fringe areas along the C5 Corridor.
Metro Mindanao recorded the highest regional growth at 5.5% year-on-year, followed by Metro Cebu at 3.8%, while select Greater Manila fringe neighborhoods along the C5 Corridor and Katipunan area posted gains between 4% and 6% as buyers sought better value outside congested CBDs.
The main demand driver behind these fast-growing neighborhoods is the combination of strong local job markets, improving infrastructure connectivity, and relative affordability compared to saturated premium districts like Makati and BGC.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in the Philippines.
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.
Which property types are increasing faster in value in the Philippines as of 2026?
As of early 2026, the ranking of property types by value appreciation in the Philippines places houses (including house-and-lot and townhouse formats) at the top, followed by mid-income condos in established job centers, with luxury high-rise condos in oversupplied areas trailing behind.
The top-performing property type, houses in NCR, posted an annual appreciation of 5.8%, which was over seven times higher than the 0.8% recorded for NCR condominiums during the same period.
Houses are outperforming condos in the Philippines primarily because Filipino families increasingly prefer horizontal living with more space, especially after pandemic-era lifestyle shifts, while condo markets face persistent vacancy and inventory pressure that limits price growth.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in the Philippines?
- How much should you pay for a house in the Philippines?
What is driving property prices up or down in the Philippines as of 2026?
As of early 2026, the top three factors driving Philippine property prices are interest rates and mortgage affordability (supportive since the BSP cut rates), condo supply overhang in specific Metro Manila submarkets (holding back prices where inventory is heavy), and OFW remittances (providing steady demand support for upgrading and rental property purchases).
The single factor with the strongest upward pressure on Philippine property prices right now is the improved mortgage affordability following BSP's rate cuts, which brought the policy rate down to 4.5% and made monthly payments more manageable for middle-income buyers.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about the Philippines here.
Get fresh and reliable information about the market in the Philippines
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What is the property price forecast for the Philippines in 2026?
How much are property prices expected to increase in the Philippines in 2026?
As of early 2026, property prices in the Philippines are expected to increase by approximately 3% to 6% over the year, with a center estimate around 4.5% in nominal terms.
Different analysts project varying growth rates, with conservative estimates around 2% to 3% for oversupplied condo markets and more optimistic forecasts of 5% to 7% for well-located houses and townhouses in infrastructure-connected areas.
Most price forecasts for the Philippines in 2026 assume that the BSP will maintain its accommodative stance on interest rates and that the condo supply overhang will gradually clear rather than worsen.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in the Philippines.
Which neighborhoods will see the highest price growth in the Philippines in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in the Philippines are Cebu IT Park and Lahug in Metro Cebu, Lanang and Bajada in Davao City, and the C5 Corridor and Katipunan area in Metro Manila's fringe zones.
These top neighborhoods are projected to see price growth between 5% and 8% in 2026, outperforming the national average thanks to strong local demand and improving connectivity.
The primary catalyst driving expected growth in these neighborhoods is the combination of expanding job centers (especially BPO and services), new infrastructure connections, and relative affordability compared to saturated premium districts.
One emerging neighborhood in the Philippines that could surprise with higher-than-expected growth is the Bulacan commuter belt, particularly areas near the new Manila International Airport project, where buyer interest is building ahead of improved connectivity.
By the way, we've written a blog article detailing what are the current best areas to invest in property in the Philippines.
What property types will appreciate the most in the Philippines in 2026?
As of early 2026, houses and townhouses in near-metro areas with good infrastructure access are expected to appreciate the most in the Philippines, followed by mid-income condos in established job centers.
The top-performing property type, well-located townhouses and compact house-and-lot properties, is projected to appreciate by 5% to 7% in 2026, continuing the pattern where horizontal living outperforms vertical options.
The main demand trend driving appreciation for houses and townhouses is the sustained Filipino preference for more living space and private outdoor areas, a shift that accelerated during the pandemic and has shown no signs of reversing.
Condos in oversupplied Metro Manila submarkets, particularly in the Bay Area and parts of Quezon City with heavy inventory, are expected to underperform in 2026 because elevated vacancy rates and competing supply will continue to limit sellers' pricing power.
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.
How will interest rates affect property prices in the Philippines in 2026?
As of early 2026, lower interest rates are providing support to Philippine property prices by improving buyer affordability, though recent central bank messaging suggests a more cautious stance on further cuts due to inflation concerns.
The current BSP policy rate is 4.5%, and mortgage rates have come down from their 2024 highs, but the central bank has signaled it may pause additional cuts following the December 2025 inflation uptick to 1.8%.
A 1% change in interest rates typically affects Philippine property prices by shifting buyer purchasing power by roughly 8% to 10%, meaning that even modest rate movements can meaningfully impact what homes Filipino families can afford.
You can also read our latest update about mortgage and interest rates in The Philippines.
What are the biggest risks for property prices in the Philippines in 2026?
As of early 2026, the three biggest risks for Philippine property prices are persistent condo oversupply in Metro Manila submarkets, infrastructure project execution delays that could disappoint priced-in expectations, and potential inflation or interest rate surprises that would hurt mortgage affordability.
The risk with the highest probability of materializing is the condo oversupply lingering longer than expected, since LPC research suggests Metro Manila's inventory could take up to three years to clear, and that timeline could stretch further if absorption rates disappoint.
We actually cover all these risks and their likelihoods in our pack about the real estate market in the Philippines.
Is it a good time to buy a rental property in the Philippines in 2026?
As of early 2026, it can be a good time to buy a rental property in the Philippines if you target renter-native locations with strong job markets, but you need to be cautious about oversupplied condo clusters where vacancy rates remain elevated.
The strongest argument in favor of buying now is that lower interest rates have improved cashflow math for landlords, and developers are offering attractive promos, extended payment terms, and rent-to-own schemes that create opportunities for selective buyers.
The strongest argument for waiting is that the condo inventory overhang in parts of Metro Manila could take years to clear, meaning that rental yields may stay compressed and capital appreciation may disappoint in submarkets where supply outpaces tenant demand.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in the Philippines.
You'll also find a dedicated document about this specific question in our pack about real estate in the Philippines.
Buying real estate in the Philippines can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in the Philippines?
What is the 5-year property price forecast for the Philippines as of 2026?
As of early 2026, property prices in the Philippines are expected to grow by approximately 25% to 35% cumulatively over the next five years, bringing values notably higher by 2031.
The range of five-year forecasts spans from a conservative scenario of about 20% cumulative growth (if condo oversupply persists and interest rates rise) to an optimistic scenario of 40% or more (if infrastructure execution accelerates and demand remains strong).
This translates to a projected average annual appreciation rate of roughly 4.5% to 6% over the next five years in the Philippines, which is moderate by emerging market standards but consistent with the country's recent history.
The key assumption most forecasters rely on for their five-year predictions is that Philippine GDP growth will remain in the mid-5% to 6% range, which underpins household income growth and sustained housing demand.
Which areas in the Philippines will have the best price growth over the next 5 years?
The top three areas in the Philippines expected to have the best price growth over the next five years are the Greater Manila commuter belt (parts of Bulacan, Laguna, and Cavite with improving rail and expressway access), the Cebu growth spine (IT Park, SRP-adjacent areas, and Mactan), and Davao's expanding urban core (Lanang, Buhangin, and Matina corridors).
These top-performing areas are projected to see five-year cumulative price growth of 35% to 50%, outperforming the national average as infrastructure improvements compress travel times and attract more buyers.
This longer-term forecast aligns with our shorter-term 2026 outlook but amplifies the infrastructure theme, since projects that are just starting now will deliver more visible benefits over a five-year horizon than within a single year.
One currently undervalued area in the Philippines with strong five-year outperformance potential is the Clark-Pampanga corridor, where the New Clark City development and improved airport connectivity could drive significant appreciation as the area matures.
What property type will give the best return in the Philippines over 5 years as of 2026?
As of early 2026, townhouses and compact house-and-lot properties in near-metro areas with improving infrastructure access are expected to give the best total return over five years in the Philippines.
The projected five-year total return for this top-performing property type, combining appreciation and rental income, is roughly 50% to 70%, assuming you buy in a well-connected location and maintain reasonable occupancy.
The main structural trend favoring townhouses and houses over the next five years is the sustained Filipino preference for horizontal living with more space, combined with the expanding reach of expressways and rail lines that make suburban living more practical.
For investors seeking the best balance of return and lower risk over five years, mid-income condos in proven job centers like Makati CBD, Ortigas, and Cebu IT Park offer more liquidity and stable tenant demand, even if the appreciation upside is more modest.
How will new infrastructure projects affect property prices in the Philippines over 5 years?
The top three major infrastructure projects expected to impact Philippine property prices over the next five years are the Metro Manila Subway (connecting Quezon City to the airport corridor), the North-South Commuter Railway extensions (improving access to Bulacan and Laguna), and the New Manila International Airport in Bulacan.
Properties near completed infrastructure projects in the Philippines typically command a price premium of 15% to 30% compared to similar properties without such access, though the premium builds gradually as construction progresses and becomes more certain.
The specific neighborhoods that will benefit most from these infrastructure developments include areas along the C5 Corridor and Katipunan in Metro Manila, the Bulacan commuter belt near the new airport site, and Laguna and Cavite towns with improved expressway and rail connections.
How will population growth and other factors impact property values in the Philippines in 5 years?
The Philippines' population is projected to grow by roughly 1.3% to 1.5% annually over the next five years, and this steady growth, combined with continued urbanization, will support baseline housing demand especially in metro areas and their expanding commuter belts.
The demographic shift with the strongest influence on Philippine property demand over five years is the growth of the young professional and early family-formation cohort, who are the primary buyers of starter homes and rental units in job-center locations.
Migration patterns will continue to shape Philippine property values, with domestic migration flowing toward Metro Manila, Cebu, and Davao for jobs, while OFW remittances (which topped $3.2 billion in a single month in late 2025) provide steady capital for property purchases in family-linked locations.
Townhouses and compact houses in near-metro commuter towns will benefit most from these demographic trends, along with rental-oriented condos in established job centers where young professionals concentrate.
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.
What is the 10 year property price outlook in the Philippines?
What is the 10-year property price prediction for the Philippines as of 2026?
As of early 2026, property prices in the Philippines are expected to grow by approximately 60% to 90% cumulatively over the next ten years, reflecting the country's long-term growth trajectory despite periodic cycles.
The range of ten-year forecasts spans from a conservative scenario of about 50% cumulative growth (if structural headwinds persist) to an optimistic scenario exceeding 100% (if the Philippines sustains strong GDP growth and infrastructure execution).
This translates to a projected average annual appreciation rate of roughly 5% to 7% over the next decade in the Philippines, which is consistent with the country's historical performance during non-crisis periods.
The biggest uncertainty factor in making ten-year property price predictions for the Philippines is whether condo supply discipline will improve and whether infrastructure megaprojects will actually be completed on schedule, since both have historically been volatile.
What long-term economic factors will shape property prices in the Philippines?
The top three long-term economic factors that will shape Philippine property prices over the next decade are sustained services-sector and income growth (the broad demand engine), interest rate regime stability (which determines mortgage affordability cycles), and infrastructure follow-through (whether promised projects actually get built).
The single long-term economic factor with the most positive impact on Philippine property values will be continued income growth driven by the services sector, BPO expansion, and rising middle-class purchasing power, which historically underpins steady housing demand.
The greatest structural risk to Philippine property values over the long term is the condo supply discipline question, since developers have historically tended to overbuild during boom periods, creating inventory overhangs that suppress prices for years afterward.
You'll also find a much more detailed analysis in our pack about real estate in the Philippines.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about the Philippines, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Bangko Sentral ng Pilipinas (BSP) RPPI Hub | It's the Philippine central bank's official nationwide house-price index. | We used it as our anchor for official price trends. We also relied on its hedonic methodology description and housing loan data coverage. |
| BSP RPPI Report Q3 2025 | It's the most direct primary source for nationwide residential price changes by area and type. | We used its year-on-year and quarter-on-quarter changes to quantify recent momentum. We also used breakdowns by NCR versus outside NCR and condos versus houses. |
| BSP Daily Key Statistical Indicators | It's the BSP's own daily snapshot of key interest rates. | We used it to describe borrowing conditions as of the first half of 2026. We also used it to frame how interest rates could shape 2026 demand. |
| IMF Technical Assistance Report on BSP's RPPI | The IMF is a top-tier international institution with expertise in statistical methodology. | We used it to strengthen confidence that the RPPI is built on modern hedonic methods. We also used it to understand what the RPPI can and cannot tell us. |
| World Bank Philippines Economic Update (Dec 2025) | It's a major multilateral's macro view, updated close to January 2026. | We used it to ground the 2026-2027 macro backdrop that typically drives housing demand. We cross-checked forecast tone against ADB and BSP commentary. |
| Asian Development Bank (ADB) Asian Development Outlook | ADB is a leading regional institution, and its outlook is widely used for growth assumptions. | We used ADB's 2026 growth view as an input into our price-growth forecast. We triangulated it with World Bank and BSP guidance to avoid single-source bias. |
| NEDA Infrastructure Flagship Projects (IFPs) | It's the official government tracker for nationally prioritized infrastructure projects. | We used it to identify which corridors are most likely to benefit from improved connectivity. We translated that into residential hotspots over five years. |
| BSP Build Better More Explainer | It compiles the government IFP framework with clear references. | We used it as a bridge that summarizes the infrastructure approach. We then relied on NEDA for the live project list. |
| Bureau of Internal Revenue (BIR) Zonal Values | It's the government's official reference values for taxation on property transfers. | We used zonal values as a reality check on land-value floors. We also used it to support discussions when market pricing runs far above tax reference values. |
| Colliers Philippines Residential Q3 2025 Report | Colliers is a major global consultancy with established research practices. | We used its Metro Manila color on vacancy, oversupply pockets, and demand shifts. We treated this as a complement to BSP's nationwide trend-focused index. |
| BusinessWorld (LPC Briefing on Condo Inventory) | It's a major Philippine business paper with clear attribution to named research firms. | We used it to quantify the supply overhang risk in condos. We connected that to where pricing power is weaker versus stronger. |
| Reuters (BSP Policy Rate and Inflation Context) | Reuters is a top-tier wire service reliable for time-sensitive macro and central bank commentary. | We used it to describe the January 2026 rate-cut pause tone and inflation context. We anchored exact rate levels on BSP's own daily table. |
| Reuters (2026 Budget and Infrastructure Spending) | It's a high-quality source for fiscal policy and near-term public spending context. | We used it to frame how infrastructure execution constraints could affect property catalysts in 2026. We leaned on NEDA for actual project details. |
| Santos Knight Frank Market Reports | It's a well-known brokerage with recurring market publications in the Philippines. | We used it as a secondary check on demand mix and post-POGO adjustment narratives. We treated it as triangulation alongside BSP, Colliers, and LPC data. |
| Philippine News Agency (OFW Remittances) | It's the official government news agency with direct access to BSP remittance data. | We used it to describe remittance flows as a structural demand support. We connected remittance patterns to housing upgrade and rental property demand. |
| Global Property Guide (Philippines) | It's a respected international property research platform with long-term BSP data series. | We used it to cross-check historical RPPI trends and real versus nominal price movements over multiple years. |
| Colliers Philippine Property Market Outlook 2026 | It's a forward-looking report from a major consultancy covering all property sectors. | We used it to validate our 2026 forecasts and identify sector-specific trends like industrial growth and retail recovery. |
| Ayala Land 2026 Market Outlook | Ayala Land is one of the Philippines' largest and most respected developers. | We used it to understand developer perspectives on market recovery and emerging growth corridors in the Philippines. |
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If you want to go deeper, you can read the following:
- Is now a good time to invest in property in The Philippines?