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
This blog post covers everything you need to know about current housing prices in the Philippines, how the real estate market is evolving in 2026, and what trends are shaping buyer decisions right now.
We constantly update this article to reflect the latest data and market shifts, so you always have access to fresh, reliable information.
Whether you are looking at Metro Manila condos or suburban house-and-lot developments in Cavite or Cebu, this guide breaks down what matters most for foreign buyers in plain language.
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.
How's the real estate market going in the Philippines in 2026?
What's the average days-on-market in the Philippines in 2026?
As of early 2026, the estimated average days-on-market for residential properties in the Philippines is roughly 90 days, though this national figure blends faster-moving Metro Manila condos with slower provincial house-and-lot sales.
The realistic range of days-on-market that covers most typical listings in the Philippines spans from about 60 days for well-priced mid-market condos in Makati or BGC to 150 days or more for house-and-lot properties in suburban areas where title verification and buyer financing take longer.
Compared to one or two years ago, days-on-market in the Philippines has stretched slightly because the condo segment still has over 30,000 unsold ready-for-occupancy units in Metro Manila, according to Colliers, which means buyers have more negotiating time and less urgency to close quickly.
Are properties selling above or below asking in the Philippines in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in the Philippines is around 90% to 95%, meaning most homes sell at a 5% to 10% discount from the initial listing price.
The majority of properties in the Philippines, perhaps 75% to 85%, sell at or below asking, and above-asking sales are rare because the condo market remains a buyer's market with developers offering promos, rent-to-own schemes, and extended payment terms that make competitive bidding uncommon.
The property types or neighborhoods in the Philippines most likely to see bidding wars and above-asking sales are limited to high-demand pockets like newly completed projects in Bonifacio Global City (BGC) with unique views or well-located house-and-lot properties in Alabang and other premium gated communities where supply is genuinely constrained.
By the way, you will find much more detailed data in our property pack covering the real estate market in the Philippines.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What kinds of residential properties can I realistically buy in the Philippines?
What property types dominate in the Philippines right now?
The estimated breakdown of the most common residential property types available for sale in the Philippines in 2026 is roughly 55% condominiums, 35% house-and-lot properties, 7% townhouses, and 3% residential lots, based on current listing patterns across major property portals.
The single property type that represents the largest share of the market in the Philippines is condominiums, which dominate because Metro Manila's dense urban fabric and limited land availability make vertical living the most practical option for workers, investors, and young professionals.
Condominiums became so prevalent in the Philippines because the country's land ownership restrictions make condos the easiest legal pathway for foreign buyers, and decades of developer focus on high-rise projects near business districts like Makati, BGC, and Ortigas created a deep supply of this property type.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in the Philippines right now?
The estimated share of new-build properties among all residential listings currently available in the Philippines is about 40% to 50%, which is relatively high because many developers launched projects before the pandemic that are now reaching completion and competing with resale inventory.
As of early 2026, the neighborhoods or districts in the Philippines with the highest concentration of new-build developments include BGC (Taguig), Makati's fringe areas like Rockwell, the C5 Corridor, Pasig's Ortigas East, and growth corridors in Cavite, Laguna, and Bulacan where master-planned communities are actively under construction.
Get fresh and reliable information about the market in the Philippines
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Which neighborhoods are improving fastest in the Philippines in 2026?
Which areas in the Philippines are gentrifying in 2026?
As of early 2026, the top neighborhoods in the Philippines currently showing the clearest signs of gentrification include Poblacion in Makati, Kapitolyo in Pasig, Maginhawa in Quezon City, and parts of the C5 Corridor where formerly residential streets are transforming into mixed-use hubs.
The visible changes indicating gentrification is underway in those areas of the Philippines include the rapid multiplication of specialty coffee shops, co-working spaces, and boutique restaurants in Poblacion, the conversion of old houses into commercial establishments along Maginhawa Street, and the arrival of branded retail and lifestyle tenants in Kapitolyo's walkable blocks.
The estimated price appreciation in those gentrifying neighborhoods over the past two to three years has been roughly 15% to 25% cumulatively, with Poblacion and Kapitolyo outperforming the Metro Manila average because their pedestrian-friendly layouts and food-and-beverage scenes attract both renters and buyers seeking lifestyle convenience.
By the way, we've written a blog article detailing what are the current best areas to invest in property in the Philippines.
Where are infrastructure projects boosting demand in the Philippines in 2026?
As of early 2026, the top areas in the Philippines where major infrastructure projects are currently boosting housing demand include the Metro Manila Subway corridor (particularly Quezon City and Pasig stations), the Clark-Manila connectivity zone in Pampanga, and the Cavite-Laguna Expressway (CALAX) corridor in southern Metro Manila.
The specific infrastructure projects driving that demand in the Philippines include the Metro Manila Subway (the country's first underground mass transit system), the North-South Commuter Railway extensions, the NLEX-SLEX Connector Road, and expanded airport capacity at Clark International Airport.
The estimated timeline for completion of those major projects in the Philippines ranges from partial operations of the Metro Manila Subway by 2028-2029 to full buildout of the railway networks over the next five to seven years, though government infrastructure timelines have historically faced delays.
The typical price impact on nearby properties once such infrastructure projects are announced versus completed in the Philippines is a 5% to 15% premium at announcement (pricing in expectations), followed by another 10% to 20% lift upon completion when accessibility benefits become real and tangible for commuters and renters.
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.
What do locals and insiders say the market feels like in the Philippines?
Do people think homes are overpriced in the Philippines in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders is that prime Metro Manila condos feel overpriced relative to rental yields, while house-and-lot properties in suburban growth corridors like Cavite and Laguna are seen as more fairly valued for end-users.
The specific evidence or metrics locals typically cite when arguing homes are overpriced in the Philippines include gross rental yields compressed to 4% to 5% in Makati and BGC (compared to 6% or higher in mid-market areas), high association dues that eat into returns, and the persistent condo vacancy rate hovering around 25% in Metro Manila.
The counterarguments or justifications commonly given by those who believe prices are fair in the Philippines include the long-term urbanization trend, the steady inflow of OFW remittances supporting home purchases, and the fact that infrastructure projects will eventually improve connectivity and justify current prices in growth corridors.
The price-to-income ratio in the Philippines, particularly in Metro Manila, is estimated at roughly 15 to 20 times the median annual household income for a typical condo, which is higher than the national average and comparable to other major Southeast Asian cities like Bangkok and Jakarta.
What are common buyer mistakes people regret in the Philippines right now?
The estimated most frequently cited buyer mistake that people regret making in the Philippines is not verifying the condo building's foreign ownership cap before committing to a purchase, which can result in a blocked transfer of title and a failed transaction after months of negotiation.
The second most common buyer mistake people mention regretting in the Philippines is underestimating the carrying costs of condo ownership, including monthly association dues that can reach 80 to 150 pesos per square meter, parking fees, and special assessments for building maintenance that significantly reduce net rental income.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in the Philippines.
It's because of these mistakes that we have decided to build our pack covering the property buying process in the Philippines.
Get the full checklist for your due diligence in the Philippines
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
How easy is it for foreigners to buy in the Philippines in 2026?
Do foreigners face extra challenges in the Philippines right now?
The estimated overall difficulty level foreigners face when buying property in the Philippines compared to local buyers is moderate for condos (straightforward if the building has foreign quota available) but high for land or house-and-lot (effectively prohibited without a Filipino spouse or corporate structure).
The specific legal restrictions or additional requirements that apply to foreign buyers in the Philippines include the Constitutional prohibition on foreign land ownership, the 40% foreign ownership cap on condominium corporations, and the requirement to provide proof of legal entry and source of funds for anti-money-laundering compliance.
The practical challenges foreigners most commonly encounter in the Philippines include navigating the BIR (Bureau of Internal Revenue) tax clearance process, which can take weeks; dealing with inconsistent documentation requirements across different Registry of Deeds offices; and finding banks willing to finance foreign buyers, which often requires a long-term visa like SRRV or a Filipino co-borrower.
We will tell you more in our blog article about foreigner property ownership in the Philippines.
Do banks lend to foreigners in the Philippines in 2026?
As of early 2026, the estimated availability of mortgage financing for foreign buyers in the Philippines is limited but not impossible, with a handful of banks and international lenders like HSBC willing to consider applications from foreigners who have long-term visas (SRRV, 13A) and strong income documentation.
The typical loan-to-value ratios foreign buyers can expect in the Philippines range from 50% to 70% (compared to 80% for Filipinos), and interest rates for housing loans currently sit between 6% and 9.5% for the first one to five years of a fixed-rate period before repricing to market rates.
The documentation and income requirements banks typically demand from foreign applicants in the Philippines include a valid passport and visa, proof of stable foreign or local income (tax returns, employment contracts, or audited financials for business owners), bank statements showing sufficient funds, and often a Filipino co-borrower or guarantor to strengthen the application.
You can also read our latest update about mortgage and interest rates in The Philippines.
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 risky is buying in the Philippines compared to other nearby markets?
Is the Philippines more volatile than nearby places in 2026?
As of early 2026, the estimated price volatility of the Philippines is moderate compared to nearby markets like Thailand (which has shown steadier appreciation) and Vietnam (which has experienced sharper swings in certain segments), placing the Philippines in a middle-ground category for Southeast Asian real estate risk.
The historical price swings the Philippines has experienced over the past decade compared to those nearby markets include a sharp 15% real decline during the pandemic (Q3 2020), followed by a gradual recovery, whereas Singapore remained more stable and Indonesia showed similar volatility patterns to the Philippines.
If you want to go into more details, we also have a blog article detailing the updated housing prices in the Philippines.
Is the Philippines resilient during downturns historically?
The estimated historical resilience of the Philippines property values during past economic downturns is moderate, with prices in prime end-user neighborhoods recovering relatively quickly while investor-heavy condo clusters (like some parts of Pasay's Entertainment City) tend to experience prolonged softness.
During the most recent major downturn (the COVID-19 pandemic), property prices in the Philippines dropped by roughly 15% in real terms in Metro Manila CBDs between 2020 and 2021, and the recovery took about two to three years to return to pre-pandemic nominal levels, though real (inflation-adjusted) values remained under pressure longer.
The property types or neighborhoods in the Philippines that have historically held value best during downturns include house-and-lot properties in established villages like Alabang, BF Homes, and gated communities in Quezon City, as well as condos in Rockwell Center and BGC that cater to end-users rather than speculative investors.
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How strong is rental demand behind the scenes in the Philippines in 2026?
Is long-term rental demand growing in the Philippines in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in the Philippines is positive in core business districts and transit-accessible areas, though the pace is moderate because end-user buyers absorb some demand that would otherwise flow into rentals.
The tenant demographics driving long-term rental demand in the Philippines include young professionals in the BPO and IT-BPM sectors (especially in Makati, BGC, and Ortigas), students near university belts in Manila and Quezon City, and expatriates working for multinational companies who prefer furnished units in prime locations.
The neighborhoods in the Philippines with the strongest long-term rental demand right now include Makati CBD, BGC, Ortigas Center, Mandaluyong (particularly near Boni and Shaw MRT stations), and parts of Quezon City near Cubao and Diliman where rents remain affordable relative to incomes.
You might want to check our latest analysis about rental yields in the Philippines.
Is short-term rental demand growing in the Philippines in 2026?
The regulatory changes or restrictions currently affecting short-term rental operations in the Philippines are building-level rather than national, meaning many condo associations prohibit Airbnb-style rentals through house rules, and enforcement varies widely by building management and local government unit.
As of early 2026, the estimated growth trend for short-term rental demand in the Philippines is positive in tourism-heavy markets like Boracay, Cebu, Palawan, and parts of Metro Manila near the airport and Entertainment City, driven by recovering international arrivals and domestic travel.
The current estimated average occupancy rate for short-term rentals in the Philippines ranges from 50% to 65% in popular tourist destinations, though this varies significantly by season, with peak months (December to May) seeing rates above 70% and off-peak months dropping below 50%.
The guest demographics driving short-term rental demand in the Philippines include Korean and Chinese tourists (in Cebu and Boracay), digital nomads from Western countries seeking affordable tropical bases, and domestic travelers taking advantage of long weekends and holidays.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in the Philippines.
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 are the realistic short-term and long-term projections for the Philippines in 2026?
What's the 12-month outlook for demand in the Philippines in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in the Philippines is cautiously positive, with analysts expecting a "selective recovery" where prime locations and well-priced mid-market units see improved absorption while oversupplied segments remain negotiable.
The key economic or political factors most likely to influence demand in the Philippines over the next 12 months include the BSP's continued rate-cutting cycle (which supports mortgage affordability), the pace of infrastructure project execution, and the resolution of governance concerns that have dampened business sentiment in late 2025.
The forecasted price movement for the Philippines over the next 12 months is a modest 2% to 5% nominal increase nationwide, with Metro Manila condos likely to stay flat or see marginal gains while provincial growth corridors like Cavite, Laguna, and Cebu may outperform with 5% to 7% appreciation.
By the way, we also have an update regarding price forecasts in The Philippines.
What's the 3-5 year outlook for housing in the Philippines in 2026?
As of early 2026, the estimated 3-5 year outlook for housing prices and demand in the Philippines is moderately bullish, with cumulative appreciation expected to reach 25% to 35% over five years in well-located areas, supported by urbanization, remittance flows, and infrastructure completion.
The major development projects or urban plans expected to shape the Philippines over the next 3-5 years include the Metro Manila Subway (partial operations by 2028-2029), the North-South Commuter Railway, New Manila International Airport in Bulacan, and continued expansion of mixed-use townships in Clark, Cavite, and Cebu.
The single biggest uncertainty that could alter the 3-5 year outlook for the Philippines is the risk that condo oversupply in Metro Manila persists longer than expected, which would compress rental yields, extend days-on-market, and force developers to offer deeper discounts that drag down resale values.
Are demographics or other trends pushing prices up in the Philippines in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in the Philippines is supportive, with continued urbanization (nearly 49% of the population now lives in urban areas) and a young median age creating sustained demand for housing in and around major cities.
The specific demographic shifts most affecting prices in the Philippines include the ongoing rural-to-urban migration concentrated in Metro Manila, Cebu, and Davao; the steady inflow of OFW remittances (which hit record highs in recent years) funding family home purchases; and household formation among millennials entering prime home-buying years.
The non-demographic trends also pushing prices in the Philippines include the rise of hybrid work (which has boosted demand for larger units and suburban house-and-lot properties), the expansion of BPO and IT-BPM employment anchoring demand near business districts, and foreign investor interest encouraged by the extended 99-year lease law for industrial and commercial land.
These demographic and trend-driven price pressures are expected to continue in the Philippines for at least the next decade, though the pace may moderate as the condo market absorbs its current inventory overhang and as infrastructure projects reshape demand patterns across the metro.
What scenario would cause a downturn in the Philippines in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in the Philippines is a combination of persistent condo oversupply, a reversal of BSP rate cuts due to inflation surprises, and a slowdown in OFW remittances or BPO employment that would reduce buyer purchasing power.
The early warning signs that would indicate such a downturn is beginning in the Philippines include rising condo vacancy rates beyond the current 26%, a sharp increase in developer promos and fire-sale discounts, a spike in foreclosure filings at banks, and a noticeable drop in building permit applications signaling developer retreat.
Based on historical patterns, a potential downturn in the Philippines could realistically see prices decline by 10% to 20% in nominal terms over two to three years in the most affected segments (investor-heavy condos in oversupplied areas), while end-user neighborhoods would likely experience shallower declines of 5% to 10% and recover faster.
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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 | It's the Philippine central bank's official nationwide house-price index based on regulated-bank housing loan data. | We used it to anchor what prices are doing nationally and by broad location buckets. We treated it as the baseline and cross-checked it against private market reports for on-the-ground context. |
| BSP Monetary Policy Releases | It's an official BSP statement on policy rates and inflation outlook that directly affects mortgage conditions. | We used it to explain why mortgage conditions in early 2026 are likely easier than in peak-rate periods. We used it as a driver in the demand outlook scenarios. |
| Colliers Philippines | Colliers is a major global real-estate consultancy with a long-running, method-based research practice in the Philippines. | We used it for market feel indicators like oversupply, promos, vacancy expectations, and which segments are recovering. We used it to translate price indexes into buyer-relevant negotiating dynamics. |
| Global Property Guide | It provides consistent cross-country property price and rental yield data with transparent methodology. | We used it to compare Philippine price dynamics vs nearby markets and to ground rental yield discussions. We used it to provide historical context on price movements. |
| Bank for International Settlements (BIS) | BIS is the global standard-setter for cross-country property price statistics and publishes comparable series. | We used it to compare the Philippines' price dynamics vs nearby markets using a consistent framework. We used it to discuss volatility and resilience in a cross-country way. |
| BusinessMirror (PSA-cited) | It's a national business paper that explicitly attributes key figures to official PSA releases. | We used it to confirm the late-2025 construction slowdown heading into 2026. We used it to inform the new builds availability and supply-risk narrative. |
| Lawphil (RA 4726 Condominium Act) | Lawphil is a widely used repository for Philippine legal texts, and RA 4726 is the governing statute for condominiums. | We used it to anchor what foreigners can legally buy (condo units) and the structural rules around condo ownership. We used it to shape the foreigner pathway checklist. |
| 1987 Philippine Constitution (Lawphil) | It's the foundational legal text that underpins land ownership restrictions for foreigners. | We used it to clearly state the land-ownership boundary for foreigners. We used it to prevent agent myths from creeping into the guidance. |
| Ayala Land | Ayala Land is one of the Philippines' largest and most respected property developers with deep market insight. | We used it to understand developer perspectives on 2026 trends and infrastructure impacts. We used it to validate growth corridor projections. |
| Philippine Information Agency (PIA) | It's an official government newswire that reflects agency-verified project updates. | We used it to identify infrastructure catalysts tied to specific areas and timelines. We used it to support where infrastructure is boosting demand examples. |
| AirDNA | AirDNA is a widely cited short-term rental data provider with a consistent methodology across countries and cities. | We used it to ground whether STR demand is rising and what normal occupancy and rate ranges look like by market. We used it cautiously and paired it with tourism and macroeconomic drivers. |