16 strong reasons to buy property in the Philippines in 2025

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

Are you considering expanding your real estate portfolio in a thriving market? Curious about the potential returns on investment in Southeast Asia's rising star? Wondering why the Philippines is becoming a hotspot for property buyers in 2025?

We will lay down recent insights, highlighting the country's economic growth, strategic location, and favorable government policies. Ici no guesswork, we rely only on solid data to present 16 compelling reasons to invest in the Philippines' property market.

Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Philippines Property Pack

1) The Philippines offers diverse properties for all investment strategies

The Philippines offers a wide variety of property types for different investment strategies.

In bustling cities like Manila and Cebu, there's a growing demand for residential condos, thanks to the expanding middle class seeking affordable housing. These urban areas are also seeing a rise in mixed-use developments that blend living, working, and shopping spaces, catering to those who want a balanced lifestyle.

On the islands of Boracay, Palawan, and Bohol, the popularity of vacation homes is soaring, driven by a booming tourism industry. For middle-income families, the market is expanding with affordable housing projects that offer quality living through initiatives like socialized housing.

Luxury real estate is also on the rise, targeting high-net-worth individuals with high-end amenities in prime locations such as Makati and Bonifacio Global City. Meanwhile, the trend of co-living and co-working spaces is gaining traction, reflecting new work models and a desire for community-focused living.

Sources: Phinma Properties, Holidu, Be-Con, DTI, Business Inquirer

2) The BPO industry's growth drives high demand for homes near business districts

The booming BPO industry is driving up demand for homes near business districts.

In the Philippines, the BPO sector is thriving, with revenues expected to hit $38 billion by 2024. This surge is not just about numbers; it's about people. By the end of 2024, the BPO workforce is projected to grow to 1.82 million employees, many of whom are flocking to bustling areas like Metro Manila.

Key business hubs such as Ortigas Center, Eastwood City, Bonifacio Global City (BGC), and Makati are seeing a concentration of BPO employees. These workers are keen on living close to their offices to save on commuting time and costs, enhancing their work-life balance. It's no surprise that around 80% of BPO employees want affordable housing nearby.

This demand has sparked a boom in residential construction near these business districts. Take MyTown Co-Living, for example, which has built 14 buildings offering 4,156 beds and 1,353 rooms, primarily for BPO workers. The rising rental prices in these areas underscore the strong market for nearby housing.

Living close to work isn't just a convenience; it's becoming a necessity. As rental prices climb, the demand for housing solutions like MyTown's continues to grow, reflecting the changing dynamics of urban living.

Sources: Inquirer, Tribune, Inquirer

Everything you need to know is included in our Real Estate Pack for The Philippines

3) The Philippines' rapid economic growth drives strong real estate appreciation in Asia

The Philippines is experiencing one of the fastest economic growth rates in Asia.

In 2023, the country's GDP growth hit 5.6 percent, the highest in Southeast Asia, and it's expected to maintain a strong pace in 2024 with projections between 5 and 6 percent. This economic boom is a major driver for the appreciation of real estate across the nation.

Foreign investors are taking notice, with the Philippines attracting around 8.86 billion U.S. dollars in net FDI in 2023. Countries like Japan and Singapore are leading the charge, boosting the economy and fueling demand for both commercial and residential properties.

The middle class in the Philippines is expanding, and with it, their disposable incomes. This shift is pushing more people to urban areas, increasing the demand for real estate in bustling cities like Manila, Cebu, and Davao. The trend of urbanization, along with government infrastructure projects, is enhancing connectivity and accessibility, making these areas even more attractive for property buyers.

As the country continues to grow, the real estate market is seeing a surge in interest, particularly in urban centers. The combination of economic growth, foreign investment, and a rising middle class is creating a dynamic and promising real estate landscape.

Sources: McKinsey, Statista, Camella

4) The Philippines' prime Southeast Asia location drives international business and skyrockets property values

The Philippines is a prime spot for international business, thanks to its strategic location in Southeast Asia.

Foreign companies are flocking to the country, drawn by its booming business process outsourcing (BPO) sector. This sector alone is expected to hit $40 billion in revenue by 2024, up from $32.5 billion in 2023. Big names like Accenture and Teleperformance are already here, setting up shop and driving demand for office spaces in bustling areas like Makati and Bonifacio Global City (BGC).

Why the rush? The Philippines offers a business-friendly environment with a skilled workforce and cost-effective operations. It's no wonder multinational companies are setting up regional offices here. The influx of these businesses is not just about office spaces; it's about creating a vibrant economic ecosystem.

The government is also playing its part by pouring money into infrastructure projects. These projects are not just about roads and bridges; they're about boosting connectivity and accessibility, which in turn fuels GDP growth. This makes the Philippines even more attractive to international investors.

Trade agreements with ASEAN neighbors are another feather in the cap. These agreements make it easier for businesses to trade and invest, further enhancing the country's appeal. It's a win-win situation for everyone involved.

Sources: McKinsey, Savills, ASL Preservation Solutions, Forbes Asia, PwC

5) The Philippines' young real estate market offers prime opportunities for early investment gains

The Philippines' real estate market is relatively young, offering unique opportunities for early investment gains.

Foreign investors are increasingly interested, with net FDI in real estate reaching about 90 million U.S. dollars in 2023. This influx of capital highlights the growing confidence in the market's potential.

Government initiatives like "Build, Build, Build" are transforming infrastructure, boosting property demand by enhancing connectivity across the country. This makes the sector more appealing to investors seeking growth.

The country's demographic trends are also a driving force. With a young and expanding population, there's a continuous need for housing and urban development, creating a strong consumer base.

The growing middle class, with its increasing purchasing power, further fuels the demand for real estate. This demographic shift is a key factor in the market's vibrancy.

Investors are drawn to the Philippines not just for its current opportunities but for its future potential, as the market continues to evolve and mature.

Sources: CEIC Data, Lord Law, Statista, Lawyer Philippines

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6) The Philippines offers the highest rental yield in the region

The Philippines boasts some of the highest rental yields in the region, making it an attractive option for property investors.

In bustling cities like Metro Manila and Cebu, rental properties are in high demand. For instance, in September 2024, Metro Manila had an impressive occupancy rate of 82%, showing just how sought-after rentals are. This means fewer vacancies and more opportunities for landlords to earn.

Economic growth is another big draw. The country's GDP is expected to grow between 5.8% and 6.3% in 2024, thanks to strong domestic consumption and supportive government policies. This kind of economic backdrop creates a stable environment for rental investments, encouraging more people to put their money into the property market.

There's also a noticeable influx of expatriates and foreign workers, especially in urban areas. These individuals are often on the lookout for quality housing, which drives up rental demand and yields. It's a trend that's particularly evident in cities like Metro Manila and Cebu, where international professionals prefer to live.

Infrastructure developments are another factor boosting the rental market. Government projects are enhancing property values and rental potential, especially in key urban centers. This means that investors can expect not just good rental returns but also potential property appreciation over time.

Sources: Global Property Guide, Source of Asia, Philippine Property Hub

7) The Philippines' natural beauty boosts the value of properties in scenic areas

The archipelago's natural beauty makes properties in scenic locations incredibly appealing.

In 2023, the Philippines welcomed 5.45 million international visitors, a clear sign of the country's growing allure. This influx of tourists has led to a 124.87% increase in tourism receipts, showcasing the magnetic pull of the Philippines' stunning landscapes. With more people exploring the country, the demand for properties in picturesque areas is on the rise.

Places like El Nido and Boracay Island are hot spots for vacation rentals. These areas boast high occupancy and daily rates, reflecting the strong interest in properties surrounded by natural beauty. The charm of these locations not only draws tourists but also boosts property values, especially in coastal and mountainous regions such as Coron and Samal Island.

The ecotourism market in the Philippines is thriving, with successful projects that stimulate local economies and create sustainable jobs. This trend highlights the growing preference for homes with scenic views, as more buyers are drawn to nature-based activities. The appeal of properties in visually stunning locations is undeniable, with many seeking a slice of paradise.

As the ecotourism sector expands, it underscores the value of investing in properties that offer breathtaking views. Buyers are increasingly looking for homes that provide a connection to nature, making these scenic locations even more desirable. The natural beauty of the archipelago is a key factor driving this demand.

Sources: Tourism Philippines, Airbtics, All Properties

8) The Philippines' middle class is rapidly growing with strong purchasing power for real estate

The Philippines is seeing a significant rise in its middle class, with increasing purchasing power for real estate.

In 2023, the country's GDP per capita climbed to $4,230, up from $3,950 in 2022. This growth indicates that more Filipinos are stepping into the middle-income bracket, which means they have more money to spend on homes.

Household incomes are also on the rise, with the gross national income per capita reaching P241,165 in 2023, a 14.7% increase from the previous year. This boost in income gives families more financial freedom to invest in real estate.

The Business Process Outsourcing (BPO) industry is booming, offering higher-paying jobs that support increased spending on property. This sector's growth is a key factor in the country's economic expansion.

In 2023, the Philippine economy grew by 5.6%, which has helped reduce poverty and enhance purchasing power. This economic progress is making real estate more accessible to a broader segment of the population.

Sources: Philstar, Trading Economics, Global Property Guide, GMA Network

Everything you need to know is included in our Property Pack for The Philippines

9) The Philippines' young growing population guarantees constant housing demand

The Philippines is buzzing with a young and growing population, which means a steady demand for housing.

In 2023, the country saw a population growth rate of 1.58%, reflecting more people calling the Philippines home. This is backed by a birth rate of 22.17 births per 1,000 people, highlighting a significant number of young folks. With more babies being born, the need for housing is naturally on the rise.

Urban areas are becoming more popular, with the urban population growth rate hitting 2.1713% in 2023. This shift to city life means more people are looking for homes in urban settings, where the demand is typically higher. The total population was around 111.91 million in 2023 and is expected to grow to 114.37 million by 2025, according to government data.

Economic growth is another factor, with the economy projected to grow by 6.0% in 2023 and 6.2% in 2024. This economic boost can lead to higher disposable incomes, making it easier for people to afford homes. Plus, government policies are in place to support housing development and infrastructure projects, enhancing living conditions and making housing more appealing.

Sources: Statista, Migration Policy Institute, Trading Economics, Asian Development Bank

10) High urbanization in the Philippines fuels strong demand for city housing

The urbanization rate in the Philippines is high, driving demand for city housing.

In bustling cities like Manila, population density reaches a staggering 42,857 people per square kilometer, making it the world's most densely populated city. This intense crowding naturally boosts the need for more housing. Other cities, such as Cebu and Davao, also face similar challenges, contributing to the overall urbanization trend.

The government is actively promoting urban development with new infrastructure projects, like improved public transportation and city amenities, making city life more appealing. As a result, the real estate market is expected to grow by 3.63% from 2024 to 2029, driven by the increasing demand for urban housing. This is evident in the rising number of high-rise buildings and real estate developments popping up in major cities.

As more people flock to urban areas, rental prices in cities like Manila and Cebu are climbing, signaling a high demand for housing. Younger Filipinos show a strong preference for urban living, further driving the demand for residential properties in city centers. This trend is fueled by the desire for better economic opportunities and the vibrant lifestyle that cities offer.

With the urban population growth rate at 2.1713% in 2023, it's expected to keep rising due to high natural increase rates and rural-to-urban migration. This means more people are moving to cities, increasing the need for housing. The government's focus on urban development is making city living more attractive, adding to the demand.

Sources: Urban Population Growth, Manila Population, Real Estate Market, Rapid Population Growth

11) Government tax incentives boost real estate investment returns in The Philippines

The government is sweetening the deal for real estate investors with tax incentives that boost potential profits.

Thanks to the Real Estate Investment Trust (REIT) Act, investors can enjoy tax exemptions on asset transfers or sales if they hold onto them for a while. This policy nudges investors towards long-term commitments, adding stability to the market.

Then there's the CREATE Act, which slashes corporate income tax rates for real estate companies. This means these companies get to keep more of their earnings, making their ventures more financially rewarding. Plus, if you're selling your primary residence, you might dodge capital gains tax, further sweetening the pot.

Special economic zones are another perk, especially for foreign investors. These areas offer tax breaks and other benefits, making them a magnet for those looking to maximize returns. It's a win-win for investors and the local economy.

Affordable housing projects also get a nod from the government with tax benefits for developers. This not only helps meet housing demands but also boosts profitability for those involved in such projects.

All these incentives create a landscape where real estate investments are not just viable but potentially lucrative. The government's approach is clear: make the market attractive and watch it thrive.

Sources: Doing Business in the Philippines, Saklaw PH, Property Report PH

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12) The government promotes eco-friendly developments boosting the appeal of new properties

The government is boosting the appeal of new properties by actively promoting eco-friendly developments.

In a bid to encourage sustainable projects, the Bangko Sentral ng Pilipinas (BSP) has rolled out some enticing incentives. For instance, there's an extra 15% single borrower limit on loans for green projects. Plus, if you're into sustainable bonds, you can enjoy a zero percent reserve requirement rate until the end of 2025. These financial perks make it easier for developers to dive into eco-friendly ventures.

Homeowners and developers eyeing renewable energy projects can also benefit from income tax holidays. This means less financial strain when setting up energy-efficient systems, making green living more affordable and appealing. It's a win-win for those looking to invest in sustainable homes.

The Marcos administration is also playing its part by dedicating a chunk of the national budget to infrastructure. This includes mixed-use projects and township developments that blend living, working, and leisure spaces. Such projects not only enhance the lifestyle but also align with the eco-friendly push, making them attractive to potential buyers.

With a focus on sustainable urban planning, the government is showing its commitment to eco-friendly developments. This approach not only boosts property appeal but also supports a greener future. The strategic allocation of resources to infrastructure underscores this commitment, making eco-friendly properties a smart choice for buyers.

Sources: Billion Bricks, ASEAN Briefing, Trade.gov

13) Tourism is booming in The Philippines driving lucrative short-term rental investment opportunities

The Philippines is seeing a booming tourism industry, especially in recent years.

In the first half of 2024, over 3 million international tourists visited the country, creating a buzz in the hospitality sector. This influx has sparked a surge in demand for accommodations, making short-term rentals a hot investment opportunity.

Platforms like Airbnb are riding this wave, with a 13% increase in listings from October 2023 to October 2024. The Philippines is not just sitting back; it's actively enhancing its tourism infrastructure. Think expanded airports and new attractions, all of which make short-term rentals even more appealing.

The government is all in, promoting tourism as a key economic driver. They're pouring money into infrastructure and offering incentives for tourism-related businesses. This support, coupled with the rising demand for unique stays, suggests short-term rentals could yield high returns.

Imagine owning a property that offers travelers a unique experience, something more than just a place to sleep. The trend is moving towards experiential accommodations, and the Philippines is perfectly positioned to capitalize on this.

Sources: Philstar, Tourism.gov.ph, GMA Network, MyLighthouse

14) The government invests in disaster-resilient infrastructure boosting property safety and value

The government is making big moves to boost property safety by investing in disaster-resilient infrastructure.

Under the "Build Better More" program, a whopping USD 243 billion is being poured into infrastructure projects from 2023 to 2028. This isn't just about building; it's about integrating climate resilience into these projects, ensuring they can withstand natural disasters. Imagine living in a place where the infrastructure is designed to handle whatever Mother Nature throws at it.

Flood control is a major focus, especially in areas like Metro Manila. By May 2024, the Department of Public Works and Highways had wrapped up 5,500 flood control projects, with more in the pipeline. These projects are not just about improving drainage; they're also about relocating informal settlers to safer areas. This means less property damage and fewer losses when floods hit.

On top of that, the government is tightening up building codes. New constructions now have to meet stricter standards that prioritize resilience to natural disasters. This means new buildings are not only safer but also more durable. For potential buyers, this is a big plus, as properties with disaster-resilient features are more attractive and often come with higher values.

These efforts are part of a broader strategy to make communities safer and more prepared for natural disasters. The focus on infrastructure and building standards is a game-changer for property safety and value. It's not just about surviving the next storm; it's about thriving in a safer, more resilient environment.

Sources: OECD Report, PhilStar Article, World Bank Blog

Everything you need to know is included in our Pack for The Philippines

15) New airports and railways boost property accessibility and value

Infrastructure projects are boosting property accessibility and value in the Philippines.

The government has been pouring resources into the Build Better More program, which is all about modernizing infrastructure to fuel economic growth. This initiative is transforming the landscape with thousands of projects, making it easier to get around and enhancing the appeal of properties across the country.

Take the Mactan-Cebu International Airport, for example. Its expansion is turning it into a major transfer hub, which means more passenger traffic and better connectivity. This makes nearby properties more attractive to buyers. Similarly, the New Manila International Airport is set to ease congestion in the capital, further improving air travel connectivity.

On the ground, railway projects like the North-South Commuter Railway and the Metro Manila Subway Project are game-changers. They're designed to connect key cities and regions, offering faster and more reliable transportation. This is great news for property values along these routes, as they become more accessible.

Improved road networks are also part of the picture. The Central Luzon Link Expressway, for instance, is cutting down travel time between key regions, which means better accessibility and increased property values. These developments are making it easier for people to move around and for properties to gain value.

Sources: BSP, Aviation Week, Kelmer

16) The Philippines' low cost of living attracts expatriates and drives high rental demand

The Philippines is a hotspot for expatriates thanks to its low cost of living.

In 2023, Manila's cost of living index was 37.9, making it 63.1% cheaper than New York City. This affordability is a major draw for those considering a move.

The rental market is buzzing, especially in places like Metro Manila and Cebu, where economic growth and job opportunities are plentiful. This makes these areas particularly attractive for expatriates looking for budget-friendly housing.

Both the government and private developers are rolling out affordable housing projects to keep up with the rental demand. This effort helps keep rental prices lower than in many Western countries, which is a big plus for newcomers.

With these initiatives, the Philippines continues to be a magnet for expatriates, offering a lifestyle that balances cost and quality. The focus on affordable housing ensures that the rental market remains competitive and accessible.

Sources: Statista, Richest PH

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.