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What is happening in the Philippines' real estate market? Are prices on the rise or decline? Is Metro Manila still a prime destination for foreign investors? How are government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the Philippines, from Cebu to Davao and beyond. You might be curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Philippine real estate market daily. That's why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Affordable housing prices will rise due to strong demand from first-time buyers
First-time homebuyers are flocking to the Philippines, especially in bustling areas like Metro Manila.
In 2023, pre-selling of condos in Metro Manila's business hubs surged, showing a clear interest from new buyers. This trend is reshaping the real estate landscape, with young professionals eager to invest in their first homes.
Affordable housing is in high demand, and it's not just a passing phase. Residential real estate prices jumped by 6.5% nationwide in 2023, even with inflation challenges. This rise indicates a strong push for budget-friendly housing, which is becoming increasingly scarce.
The government has noted a shortage in affordable housing supply, which is causing prices to climb. In early 2023, Metro Manila's residential vacancy rate was a mere 5.6%, underscoring the limited availability of homes. This scarcity is a key factor in the rising costs.
Young professionals are particularly keen on owning homes, adding to the demand. With a low vacancy rate and a strong desire for homeownership, the market is heating up. This trend is expected to persist, as more people seek to secure their place in the property market.
Sources: Global Property Guide, BusinessWorld Online
2) Foreign buyers will increasingly target properties in tourist-friendly areas like Boracay
Foreign buyers are increasingly drawn to properties in tourist hotspots like Boracay due to its booming tourism industry.
In 2023, Boracay welcomed over 2 million visitors, exceeding all expectations and highlighting a strong demand for accommodations. This makes it a prime spot for those looking to invest in real estate, as the influx of tourists ensures a steady stream of potential renters or buyers.
The Philippine government has designated Boracay as a special economic zone, offering exclusive incentives for foreign investors. These perks include income tax holidays and the ability to fully own tourism projects, making it a lucrative opportunity for international buyers.
Infrastructure improvements, like modernized airports and new convention centers, are making Boracay more accessible and appealing. These enhancements are expected to draw even more tourists and investors, further boosting the local real estate market.
For those considering an investment, Boracay's blend of natural beauty and economic incentives presents a unique opportunity. The island's status as a special economic zone means favorable conditions for foreign ownership, which is rare in many other tourist destinations.
With its stunning beaches and vibrant culture, Boracay is not just a vacation spot but a promising investment hub. The combination of government incentives and a thriving tourism sector makes it an attractive choice for savvy international investors.
Sources: Boracay Breaks Records: Surpasses 2 Million Tourist Mark in 2023, 2024 Boracay tourism trends, PH real estate 2025: Poised for growth amid shifting dynamics
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.
3) Rental yields for high-end residential properties will drop due to oversupply
In 2023 and 2024, luxury condos have flooded the market in Metro Manila.
With 11,290 new units popping up, especially around the Bay Area, the city hasn't seen such a boom since 2018. This means there's a lot more high-end living space available now.
But here's the catch: vacancy rates are climbing. In early 2023, Metro Manila's residential vacancy rate hit 5.6%, with places like Taguig and Makati seeing even higher rates of 10.1% and 9.6%. So, there are more condos than people wanting to rent them.
Real estate agents are noticing a dip in demand for these fancy rentals. High interest and mortgage rates are scaring off potential buyers, leaving many luxury units unsold. Plus, the office leasing market, which usually boosts demand for these properties, is recovering slowly.
All this means that rental yields for high-end properties are likely to drop due to the oversupply. It's a classic case of too much supply and not enough demand.
Sources: Global Property Guide, Real Estate Asia, BusinessWorld Online
4) Metro Manila’s property prices will stabilize as supply meets demand
Metro Manila is buzzing with over 2,700 residential projects in Quezon City alone, including big names like My Enso Lofts.
With the government pouring funds into infrastructure like the Metro Manila Skyway, areas are becoming more appealing for property buyers, sparking new residential growth.
In 2023, Region IV-A (CALABARZON) led the way with 26,900 residential buildings constructed, showing a clear uptick in housing supply.
By 2024, the market showed signs of stabilizing, with Metro Manila CBD house prices dropping by 20.16% when adjusted for inflation, hinting at a balance between supply and demand.
These developments are making Metro Manila a hotspot for potential buyers, as the increased supply is expected to stabilize prices.
As more projects come to life, the property market is poised for a more balanced future, offering opportunities for savvy investors.
Sources: Global Property Guide, BCI Central, Statista
5) Metro Manila rental yields will improve with economic recovery and the return of more expatriates
Rental yields in Metro Manila are on the rise as the economy bounces back and more expatriates make their return.
In recent years, the Philippine economy has shown impressive growth, with a GDP increase of 5.6% in 2023. This follows an even stronger performance in 2022, and experts predict growth rates of 6.5% to 7.5% in the near future. Such economic vitality is a promising sign for the real estate market, especially for those considering property investments.
Foreign direct investment (FDI) is also climbing, which is a boon for the economy. This influx of capital creates more job opportunities, particularly in sectors that attract expatriates. The government's "Build, Build, Build" initiative has further enhanced infrastructure, making Metro Manila more appealing to both businesses and expatriates.
The demand for housing is on the upswing, fueled by the increase in expatriate employment and the growth of multinational companies in the area. This trend is expected to push rental yields higher as expatriates look for housing options in Metro Manila. Improved consumer confidence, as shown in recent surveys, indicates that more people are ready to invest in rental properties, giving the market an additional boost.
Metro Manila's real estate scene is becoming increasingly attractive, thanks to these economic and infrastructural developments. The return of expatriates is a key factor, as they often seek quality housing, thereby driving demand and enhancing rental yields. This makes it an opportune time for potential investors to consider entering the market.
With the economy on a steady path to recovery and infrastructure improvements making the city more accessible, the real estate market is poised for growth. This creates a favorable environment for rental property investments, especially as more expatriates return and seek housing in the area.
Sources: Global Property Guide, Billion Bricks, Business Inquirer
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6) The Philippines will attract more foreign retirees seeking affordable residential options
Foreign retirees are increasingly eyeing the Philippines for affordable residential options.
Living in the Philippines is a bargain compared to Western countries. Imagine a couple enjoying life in rural areas for just $1,140 a month. Even in bustling Manila, the cost is around $2,500, which is a steal compared to the U.S. or Europe.
The exchange rate is another win for retirees. With the Philippine peso's favorable rate against the U.S. dollar, retirees can make their dollars go further. Living comfortably on $2,500 a month is a reality here, much less than the $3,800 monthly cost in the U.S.
The Philippine government sweetens the deal with the Special Resident Retiree’s Visa (SRRV). This visa offers perks like multiple-entry privileges and tax exemptions on foreign pensions, making the transition smooth and appealing.
Sources: The Filipino Chronicle, BusinessWorld Online, Teszara
7) Demand for retirement communities and senior-friendly housing will grow due to an aging population
The aging population in the Philippines is on the rise, with life expectancy reaching 71.79 years in 2024.
By 2030, expect a significant increase in those aged 60 and above. This trend is partly due to the COVID-19 pandemic, which has impacted birth rates and mortality. With more retirees, there's a growing need for senior-friendly housing options.
Real estate experts have noticed a shift towards age-appropriate housing. In 2024, there was a 40% increase in the absorption rates of senior housing, showing a clear trend towards developing retirement communities.
These communities are popping up in both urban and rural areas, catering to the needs of an aging population. Developers are focusing on creating spaces that are not only accessible but also offer a sense of community and security.
For potential buyers, this means more options tailored to senior living, with features like single-level homes, easy access to healthcare, and social activities. The demand for such properties is expected to grow as the population ages.
Investing in these properties could be a smart move, as the market is responding to the needs of an aging demographic. This shift is creating opportunities for both developers and buyers looking for long-term investments.
Sources: Philstar, GMA Network, NIC MAP Vision
8) Condominiums will attract more interest for their amenities and security features
Interest in condominiums is on the rise, especially in bustling urban areas like Metro Manila.
People are drawn to condos because they offer more than just a place to live; they come with modern amenities and enhanced security. This shift in preference is evident as many Filipinos are using their residential real estate loans to buy these properties. Condos often feature smart lighting, heating, and cooling controls, making them attractive to those seeking comfort and safety.
The pandemic has reshaped how we think about our homes, with a new focus on sanitation, ventilation, and open spaces. Developers are responding by reimagining condo designs to meet these needs. Enhanced security measures, like smart IoT devices, are becoming standard, offering residents peace of mind.
These modern features are particularly appealing to tech-savvy buyers who value convenience and safety. The emphasis on advanced security systems and smart home technology is a big draw for those looking to invest in a property that aligns with their lifestyle.
Condominiums are increasingly seen as a smart investment, not just for their location but for the lifestyle they offer. The combination of convenience, security, and modern living makes them a popular choice among urban dwellers.
Sources: Philippines's Residential Property Market Analysis 2024, The Philippine Condominium Market in Review, The Future of Condo Living: Trends and Innovations in the Philippine Real Estate Market
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.
9) Single-detached homes will become less appealing as urban land scarcity increases
Single-detached homes in urban areas like Metro Manila are losing their charm as we move through 2023 and 2024.
With Manila's population density at about 73.92 thousand people per square kilometer, finding land is like searching for a needle in a haystack. This crowding is pushing people to rethink their housing choices.
Land prices are climbing, making it tough for single-detached homes to stay in the game. In 2023, the average price of a luxury 3-bedroom condo in central business districts jumped by 3.98%. This rise shows how valuable land has become and why people are leaning towards high-density living options.
Government reports and urban planning policies are sounding the alarm on rapid urbanization. They point out issues like the lack of affordable housing and soaring land costs. These challenges are nudging buyers towards condos and townhouses, which make better use of limited space.
People are starting to see the benefits of living in condos and townhouses. These options are not just about saving space; they also offer a lifestyle that fits the urban hustle and bustle. More efficient land use is becoming a key factor in housing decisions.
As urban land becomes scarcer, the shift in buyer preferences is clear. The trend is moving away from sprawling homes to more compact, convenient living spaces.
Sources: Statista, Global Property Guide, World Bank Blogs
10) Co-living spaces will attract young professionals looking for affordable housing options
Co-living spaces are gaining popularity among young professionals in the Philippines as a smart solution for affordable housing.
With property prices in Metro Manila skyrocketing by over 25% in recent years, many millennials find it tough to buy a home. This surge has left a gap in the rental market, where options are either too pricey or lack the amenities young renters crave. Co-living spaces step in to offer affordable rentals with shared amenities, making them an attractive choice.
Young Filipinos, especially millennials and Gen Z, are drawn to flexible living arrangements that co-living spaces provide. These setups not only save money but also create a sense of community, perfect for those who love socializing and cultural experiences. Projects like MyTown and The Flats are thriving examples of this demand in urban areas.
For many, owning a home symbolizes stability, but with soaring property prices, co-living offers a practical alternative. The government and private developers are working to boost housing supply, yet co-living spaces are already filling the need for affordable urban living.
These spaces cater to young professionals who value both cost efficiency and a vibrant community lifestyle. The rise of co-living is not just about saving money; it's about embracing a new way of living that aligns with modern values.
Sources: Kadence, Lamudi, SM Investments
11) Baguio will draw more property investors as it becomes a favored spot for vacation homes
Baguio is quickly becoming a prime spot for property investors, especially those eyeing vacation homes.
In 2022, Baguio's economy saw a robust growth of 11.3%, with its GDP surpassing pre-pandemic levels by 2.2 billion pesos. This economic upswing is a strong indicator that property values are on the rise, making it a lucrative investment opportunity.
The city is also experiencing a boom in tourism. By 2023, visitor numbers were expected to exceed 7 million, with projections suggesting they could hit 12 million by 2028. This influx of tourists is fueling the demand for vacation homes and short-term rentals, essential for accommodating the growing number of visitors.
Infrastructure and transportation in Baguio are getting a major boost. Projects like the "Baguio Smart Urban Mobility Project" are underway, featuring an electric monorail and AI-powered mobility systems. These advancements will make Baguio more accessible, increasing its attractiveness to property investors.
With these developments, Baguio is not just a vacation destination but a smart investment choice. The combination of economic growth, rising tourism, and improved infrastructure is setting the stage for Baguio to become a preferred location for vacation homes.
Sources: RSSO CAR, Inquirer, Business Inquirer
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12) Iloilo City will attract residential investors as its business districts expand
Iloilo City is quickly becoming a top choice for residential investments, thanks to its expanding business districts.
Over the past few years, real estate prices in Iloilo City have been on the rise. From 2016 to 2023, house-and-lot units saw an average annual increase of 6 percent. This upward trend continued into 2024, with pre-selling condominiums experiencing a 5.4% price increase per square meter. This makes it an exciting time for potential investors looking to tap into a growing market.
The city's transformation into a business hub is a key driver of this real estate boom. Iloilo has become a magnet for business process outsourcing (BPO) firms, thanks to its skilled workforce. Companies like Teletech, IQor, and Concentrix are not just setting up shop; they are planning to expand further. This influx of businesses has created a high demand for office spaces, with 116,400 sqm of new office space completed by 2024.
Infrastructure developments are also playing a significant role in enhancing Iloilo's appeal. Projects like the Panay-Guimaras-Negros Inter-Island Link Bridge and the rehabilitation of Iloilo International Airport are set to improve connectivity and economic growth. These improvements, along with the Iloilo-Capiz-Aklan Expressway, are expected to boost the city's attractiveness for both leisure and business activities.
With these developments, Iloilo City is not just growing; it's transforming into a vibrant urban center. The combination of a thriving business environment and improved infrastructure makes it a compelling choice for residential investments. Investors are taking note, and the city's real estate market is poised for further growth.
Sources: Inquirer Business, Daily Guardian, The Manila Times
13) Property values will rise in areas connected by expanding public transportation networks
Public transportation in the Philippines is expanding rapidly, especially in Metro Manila.
Projects like the Manila Subway, which kicked off in 2019, are expected to boost property values near their stations. Colliers Philippines predicted a rise in land and property prices around new rail stations in Quezon City, drawing in millions of Filipinos.
Improved public transport also means less time commuting. Take the MRT-4 project, for example; it will cut travel times from Ortigas Center to Taytay. This makes these areas more appealing for living and business, pushing up property demand and values.
People love convenience, and surveys show that buyers prefer homes near transit lines. This preference supports the rise in property values as accessibility improves.
The Metro Manila Subway is strategically located, opening doors for commercial and industrial growth near its stations. This commercial activity is a key factor in increasing property values.
Real estate trends show that transit-oriented developments are on the rise. Quezon City, for instance, is seeing property prices climb due to developments around common station areas.
Sources: Colliers Philippines, Ohmyhome, Housing Interactive
14) Cebu’s real estate market will gain from infrastructure projects like the Cebu-Cordova Link Expressway
The Cebu-Cordova Link Expressway (CCLEX) is transforming Cebu's real estate scene.
Since its 2022 debut, the expressway has seen traffic soar, with daily vehicle numbers doubling from 6,000 to over 12,500. This boost in traffic underscores how the expressway is enhancing connectivity and making the region more accessible.
With better access, property values are climbing, especially in Cebu City, Mandaue, and Lapu-Lapu. These areas are now hot spots for investors, thanks to their improved links. Expect condo prices in Cebu to rise by 5% annually from 2024 to 2028, fueled by these infrastructure upgrades.
There's a growing demand for homes and offices near new infrastructure. In 2023, almost half of condo sales happened near these projects, showing a clear preference for properties with easy access. The office market is bouncing back too, with new business hubs popping up, giving the real estate market an extra push.
Investors are eyeing these developments closely, as the expressway not only cuts travel time but also opens up new opportunities for growth. The strategic location of these areas makes them attractive for both residential and commercial investments.
As Cebu continues to develop, the expressway is a key player in shaping the future of its real estate market, making it a prime time for potential buyers to consider investing in this thriving region.
Sources: Philippine Property Hub, Manila Bulletin, Cebu Grand Realty
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.
15) Virtual reality tours will become standard for property viewings, impacting buying decisions
Virtual reality tours are now a must-have for property viewings, changing how people make buying decisions.
Back in 2023 and 2024, the real estate world saw a big jump in using VR technology. This was part of a larger trend where the virtual tourism market grew from $10.52 billion in 2023 to $12.38 billion in 2024. The real estate industry played a huge role in this growth by embracing immersive tech.
In the Philippines, this VR trend really shook up the property market. Virtual tours changed the game in places like Cebu, where buyers could check out homes without stepping inside. A survey showed that 67% of home buyers in the Philippines preferred virtual tours, and nearly half were ready to make an offer just from a virtual tour.
Thanks to tech advancements, VR experiences became more affordable and easier to access. With the help of AI-driven chatbots and smart algorithms, the property-buying process got a lot smoother. Plus, cheaper 3D solutions meant more people could use VR tech.
Increased internet access and more smartphone use in the Philippines also sped up the shift to digital in real estate. This made it easier for people to explore properties online, making the whole process more efficient and accessible.
Sources: PhotoUp, AllProperties, Cebu Grand Realty
16) Davao City’s residential property interest will surge with the growth of its IT and BPO sectors
Davao City is quickly becoming a prime spot for residential property interest thanks to its booming IT and BPO sectors.
In recent years, the number of IT and BPO companies in Davao City has surged, drawing more people to the area. Megaworld Corp., for instance, is developing a massive business park that will create around 100,000 BPO jobs. This influx of businesses naturally boosts the demand for housing as more people move in.
By 2023, over 75,000 people were employed in the BPO sector, and the target is to reach 150,000 by 2028. More jobs mean more people relocating to Davao City, and they all need places to live. The government is also stepping up by enhancing infrastructure, like the Davao Public Transport Modernization Project, making commuting easier for workers.
IT and BPO employees generally have higher disposable incomes, which means they can afford better housing. This financial capability, along with a growing preference for urban living, is driving the demand for residential properties. Real estate developers are catching on, noting an uptick in demand, especially from young professionals moving to the city for work.
With the city's infrastructure improvements and job opportunities, Davao City is becoming increasingly attractive to potential homeowners. The combination of a supportive government and a thriving job market makes it a compelling choice for those looking to invest in property.
As the IT and BPO sectors continue to grow, the residential property market in Davao City is expected to flourish. This trend is drawing attention from both local and international investors, eager to capitalize on the city's promising future.
Sources: Mindanews, ABS-CBN, PCO, Davao Properties, Invest Davao City
17) Tech-enabled properties will become more desirable with the adoption of smart home technology
In the Philippines, smart home technology is becoming increasingly popular.
By 2023, 10.4% of people owned at least one smart home device, and this number is expected to grow significantly by 2026. This shows that more and more Filipinos are embracing the convenience and benefits of smart home gadgets. Imagine controlling your lights, security, and even your kitchen appliances with just a tap on your phone.
The market for these devices is booming. In 2024, it was valued at around USD 250 million and is projected to reach USD 350 million by 2030. This growth is largely driven by the demand for HVAC control systems, which are the most popular, along with home monitoring and smart kitchen appliances. These gadgets are not just about luxury; they offer practical benefits like energy savings and enhanced security.
Developers are catching on to this trend, investing in smart home technology for new projects. This makes tech-enabled properties more attractive to buyers. With smart appliances, homeowners can enjoy 20-30% reductions in electricity bills, which is a significant saving. The Philippine Government is also backing this trend by investing in energy-efficient technologies, making it easier for consumers to adopt these innovations.
Media coverage has been buzzing about the advantages of smart home technology, highlighting how it can make life easier and more efficient. Imagine coming home to a house that knows your preferences, from the perfect room temperature to your favorite music playing as you walk in. It's not just about convenience; it's about creating a personalized living experience.
As more people experience the benefits of smart home technology, the demand for tech-enabled properties is likely to continue growing. This shift is not just a trend; it's becoming a new standard for modern living in the Philippines.
Sources: MarkNtel Advisors, IDC, Trade.gov, MarkNtel Advisors
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.