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Thinking about buying a 3-bedroom apartment in Bonifacio Global City? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Makati or Ortigas where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Philippines Property Pack.
Will property prices increase in the Philippines in 2025?
Yes, property prices in the Philippines are expected to rise in 2025, driven by a combination of economic growth and increasing demand for real estate.
Backed by our fresh, in-depth market analysis, we’re confident that the Philippines remains an attractive market for both local and international investors.
While there are challenges such as inflation and potential interest rate hikes, the underlying factors supporting price growth are strong.
The demand for residential and commercial properties continues to outpace supply, particularly in urban areas, making significant price declines unlikely. Additionally, the Philippines' strategic location and growing economy continue to attract investors.
Signals pointing to a property price increase in the Philippines
Here are some factors suggesting prices could increase:
The Philippine economy is projected to grow steadily in 2025, boosting consumer confidence and increasing the purchasing power of potential homebuyers, which is likely to drive up property prices.
Urbanization trends continue to accelerate, with more people moving to cities for better job opportunities. This urban migration is expected to increase demand for housing in metropolitan areas, pushing property prices higher.
The government is investing in infrastructure projects, such as new roads and public transport systems, which are expected to enhance connectivity and accessibility, making certain areas more attractive for property investment.
The Philippines is experiencing a growing interest from foreign investors, particularly in the real estate sector, due to its strategic location and favorable economic conditions, which is likely to drive up property demand and prices.
The rise of the middle class in the Philippines is increasing the demand for quality housing, as more people seek to upgrade their living conditions, contributing to upward pressure on property prices.
The tourism industry in the Philippines is expected to recover and grow, increasing demand for vacation homes and rental properties, particularly in popular tourist destinations, which could lead to higher property prices.
The development of new business districts and economic zones is attracting companies and workers, increasing the demand for both residential and commercial properties in these areas, which is likely to drive up prices.
Signals pointing to a property price decrease in the Philippines
Here are some factors suggesting prices could fall:
Rising inflation could erode the purchasing power of potential buyers, making it more difficult for them to afford property, which could dampen demand and slow price growth.
Potential increases in interest rates could make borrowing more expensive, reducing the affordability of mortgages and potentially cooling demand for property purchases.
The risk of natural disasters, such as typhoons and earthquakes, remains a concern in the Philippines, which could impact property values in affected areas and deter investment.
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If property prices go up in the Philippines, how much would they increase by?
If real estate prices in the Philippines were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like the Philippines appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a lovely 2-bedroom condominium in Makati for 8,500,000 PHP today, don't be surprised if it's priced between 8,755,000 and 9,095,000 PHP this time next year.
To give you a better understanding, here is a table that shows 7 types of Philippine real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (PHP) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Condominium (60 sqm / 646 sqft) | PHP 9,000,000 | PHP 9,270,000 | PHP 9,450,000 | PHP 9,630,000 |
| Modern Apartment (75 sqm / 807 sqft) | PHP 12,000,000 | PHP 12,360,000 | PHP 12,600,000 | PHP 12,840,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | PHP 25,000,000 | PHP 25,750,000 | PHP 26,250,000 | PHP 26,750,000 |
| Studio (30 sqm / 323 sqft) | PHP 4,500,000 | PHP 4,635,000 | PHP 4,725,000 | PHP 4,815,000 |
| Loft (80 sqm / 861 sqft) | PHP 16,000,000 | PHP 16,480,000 | PHP 16,800,000 | PHP 17,120,000 |
| Townhouse (150 sqm / 1,615 sqft) | PHP 35,000,000 | PHP 36,050,000 | PHP 36,750,000 | PHP 37,450,000 |
| Investment Property (50 sqm / 538 sqft) | PHP 7,500,000 | PHP 7,725,000 | PHP 7,875,000 | PHP 8,025,000 |
Everything you need to know is included in our Property Pack for The Philippines
If real estate prices go up in the Philippines, which areas are likely to see the biggest increases?
Today, people who want to move to the Philippines seek a blend of cultural heritage and modern amenities, which Bonifacio Global City (BGC) offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Poblacion, Makati has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Philippine market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Bonifacio Global City (BGC) | High | Recent development of luxury condominiums and its increasing appeal to international investors as travel normalizes post-pandemic, driving demand. |
| Makati Central Business District | High | Expected rise due to limited office space, upcoming renovations to commercial buildings, and growing demand for prime properties in central Makati. |
| Ortigas Center | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Quezon City | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Alabang | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Tagaytay | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of tourist areas, is boosting long-term value. |
| Poblacion, Makati | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Cebu City | Medium-High | Its proximity to beaches, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Davao City | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Mactan Island | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Intramuros, Manila | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in the Philippines?
In 2025, Philippine real estate trends focus on tech-smart, energy-efficient condominiums, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Condominiums:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban centers like Metro Manila and Cebu.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Metro Manila, such as Cavite and Laguna, are seeing increased interest. Proximity to green spaces, schools, and new infrastructure developments is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In densely populated cities like Manila, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
The Philippines' commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category, particularly in eco-conscious developments.
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