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Where are the best places to invest in the Philippines right now? Is Metro Manila still the top pick, or are cities like Cebu, Davao, and Iloilo gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in the Philippines and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Baguio City is popular for its tourism appeal and strong rental market, making it a favorite for real estate investment
Baguio City is a top choice for real estate investment thanks to its strong tourism appeal.
In 2023, Baguio welcomed 1.31 million tourists, mostly from within the country, showing its popularity as a travel hotspot. This constant influx of visitors means there's always a need for accommodations, making it a prime location for real estate investors.
Every week, about 30,000 visitors explore Baguio, contributing to an impressive P120 million in annual tourism revenue. This highlights the city's potential not just in tourism but also in real estate, as investors eye opportunities in hotels, vacation rentals, and properties that serve both tourists and locals.
Baguio's hotels and transient houses enjoy high occupancy rates, with tourists typically staying for 1.4 days and spending between P2,000 to P4,000 daily. This spending pattern leads to an estimated P15 billion in annual tourism receipts, underscoring a strong rental market.
The demand for accommodations is further fueled by numerous universities in the area, creating a need for student housing. This adds another layer of opportunity for real estate investors looking to tap into the rental market.
Sources: Street Journal MS, Business Inquirer, Inquirer News
2) Tagaytay City is in demand for vacation homes and rentals with its cool climate and scenic views
Tagaytay City is a hot spot for vacation homes and rentals thanks to its unique charm.
Imagine waking up to the cool breeze and stunning views of Taal Volcano and Taal Lake. Tagaytay's climate and scenery are major draws for both local and international buyers. This has led to a booming real estate market, with more people looking to invest in properties here.
By late 2024, there were 2,818 active Airbnb listings in Tagaytay, showcasing its popularity among tourists. The city saw a surge in visitors, with over 6.5 million same-day tourists and 268,065 overnight guests in the last quarter of 2023. This influx highlights Tagaytay's status as a top vacation destination.
Tagaytay's elevation offers a refreshing escape from the heat of other Philippine regions. The cooler temperatures make it a perfect retreat for those looking to unwind. The picturesque landscapes only add to its allure, making it a favorite spot for vacationers.
Investors are keen on Tagaytay not just for its beauty but also for its potential returns. The demand for rental properties is on the rise, driven by the steady flow of tourists. This makes it an attractive option for those looking to invest in the hospitality sector.
Whether you're considering a vacation home or a rental property, Tagaytay offers a unique blend of natural beauty and investment potential. Its growing popularity is a testament to its appeal as a prime location for real estate.
Sources: Inquirer Business, Philstar, Airbtics
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.
3) Bacolod City is attracting interest with its affordable property prices and expanding business opportunities
Bacolod City is gaining attention for its affordable property prices and growing business opportunities.
In recent years, especially in 2023 and 2024, Bacolod has seen a boom in property sales and development. The condominium market is thriving, with 5,810 units available by mid-2024 and an average of 1,000 new units expected annually until 2026. Prices are quite reasonable, with some projects ranging from P193,000 to P273,000 per square meter, making it an attractive option for potential buyers.
Bacolod is also becoming a bustling business hub, drawing in major property developers and companies. Big names in the BPO industry, like Teleperformance and Transcom, have set up shop here, boosting the city's business scene. Bacolod's appeal is further enhanced by its ranking as the 19th most competitive highly urbanized city in the Philippines in 2024, which encourages more businesses to invest.
Government initiatives are playing a significant role in this growth. A notable project is the P515 million green legislative building set to rise by 2025, aimed at boosting the local economy and infrastructure. The region's economic growth of 7.2 percent in 2023 supports the construction sector, reinforcing Bacolod's status as an emerging business hub.
The expansion of commercial and retail spaces is also crucial, making Bacolod even more appealing to investors. This development is part of a broader strategy to enhance the city's infrastructure and economic landscape, ensuring it remains a top choice for property buyers and businesses alike.
Sources: Inquirer Business, Visayan Daily Star, Expat Exchange
4) Davao City is gaining interest for its stable economy and growing demand for high-rise condos
Davao City is becoming a hotspot for investors, and it's no wonder why.
In 2023, the city saw the fastest economic growth in its region, with a 7.5% increase. This boom means Davao City contributed to more than half of the Davao Region's P1.02 trillion GDP. Such economic stability is a magnet for investors seeking promising opportunities.
The real estate scene in Davao City is buzzing, especially with high-rise condos. These condos are a hit among city dwellers, thanks to ongoing infrastructure developments and a stable economy. This thriving market is pulling in both local and foreign investors, broadening the client base for real estate agents and creating a lively investment atmosphere.
One reason for the condo craze is the city's growing population. By 2024, Davao City's population was estimated at nearly 2 million, with a steady annual increase. This growth, paired with urbanization, is driving the demand for more housing options, making condos a hot commodity.
Infrastructure upgrades are also boosting Davao City's allure. The National Economic and Development Authority greenlit a major project, the Davao City Bypass Construction Project, aimed at enhancing traffic logistics and supporting economic development. These projects not only improve life quality but also make the city more appealing to investors.
With a stable economy and increasing demand for high-rise condos, Davao City is clearly on the radar for savvy investors. This trend is particularly notable in the real estate sector, where opportunities are ripe for those looking to invest in a growing market.
Sources: Davao City Government, World Population Review, PCO News Releases, Property Access Philippines
5) Clark Freeport Zone in Pampanga is booming as a major business and logistics hub
Clark Freeport Zone in Pampanga is buzzing with a real estate boom thanks to its rise as a business and logistics hub.
The expansion of Clark International Airport has been a game-changer, boosting connectivity and attracting logistics and manufacturing investments. This makes Clark a prime spot for businesses eyeing the Philippines. The airport's growth is a magnet for companies looking to tap into the region's potential.
Infrastructure projects like the North–South Commuter Railway, which links Manila and Clark, are also key. These projects enhance accessibility and fuel economic growth, making the area a hotbed for investment and tourism. New Clark City, with its smart and sustainable design, is another big draw, pushing property values and rental yields higher.
Government initiatives are crucial in this boom. The Department of Trade and Industry is actively promoting Central Luzon, spotlighting New Clark City as a business hub. This government backing, along with the influx of multinational companies and foreign investments, is boosting investor confidence and driving real estate demand.
Clark's transformation is not just about infrastructure; it's about creating a vibrant business ecosystem. The presence of major companies and strategic government support are turning Clark into a model investment destination. This synergy is what makes the area so appealing to investors.
With all these developments, Clark Freeport Zone is becoming a focal point for growth in the Philippines. The combination of improved infrastructure, strategic location, and government support is setting the stage for a thriving real estate market.
Sources: Inquirer, BCDA, BusinessWorld
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6) Puerto Princesa in Palawan is gaining interest for its tourism potential and eco-friendly developments
Puerto Princesa in Palawan is buzzing with real estate activity, thanks to its thriving tourism scene.
In 2023, the city saw a whopping 76% jump in visitors, welcoming around 529,000 tourists. This surge has sparked a high demand for places to stay, like hotels and vacation rentals, which is fueling real estate growth. The city is becoming a hotspot for those looking to invest in properties that cater to this influx of tourists.
Eco-friendly developments are also catching investors' eyes. There's a noticeable rise in sustainable resorts and hotels, aligning with the global shift towards responsible tourism. The upcoming World's Best Island Travel and Trade Expo 2025 is expected to shine a spotlight on eco-tourism, MICE, and cruise tourism, likely drawing more green investments.
Getting to Puerto Princesa is easier than ever, thanks to improved roads and airports. This accessibility is a big draw for tourists, who are eager to explore the area's natural wonders, like the Puerto Princesa Subterranean River National Park and firefly watching tours. As more people flock to the area, the demand for real estate continues to rise.
For those considering a property purchase, the city's focus on eco-tourism and sustainable development offers a unique opportunity. The blend of natural beauty and modern infrastructure makes it an attractive option for both investors and tourists. With the upcoming travel expo, Puerto Princesa is set to further elevate its status as a prime destination.
As the city continues to grow, the real estate market is expected to keep pace, offering a range of opportunities for those looking to invest in a vibrant and eco-conscious community.
Sources: Palawan News, Travel and Tour World, GetYourGuide
7) Iloilo City is booming with new infrastructure and rising demand for residential and commercial spaces
Iloilo City is booming with new infrastructure projects and a surge in demand for residential and commercial spaces.
One of the key drivers of this growth is the rehabilitation of the Iloilo International Airport, which cost around P14.7 billion. This upgrade has made the city more accessible, drawing in more visitors and investors. The airport's expansion is a game-changer, connecting Iloilo to more destinations and boosting its profile as a business hub.
Another major development is the Iloilo Business Park, a massive mixed-use project with a P35 billion investment from Megaworld. This area is now the largest central business district outside of Manila, featuring commercial, residential, and leisure spaces. The presence of the Marriott Hotel and various office spaces has made it a hotspot for business and leisure, attracting both local and international attention.
Real estate in Iloilo is also on the rise, with large outsourcing firms and property developers expanding their footprint. In the first half of 2024, Iloilo captured 13 percent of total deals recorded outside Metro Manila, equivalent to 16,000 square meters. This indicates a strong demand for office and residential spaces, driven by the city's growing economy and strategic location.
Property values in Iloilo have been climbing steadily, with house-and-lot prices increasing by an average of 6 percent annually from 2016 to 2023. This trend reflects the city's appeal as a prime investment destination, offering promising returns for both local and foreign investors.
With these developments, Iloilo City is not just growing; it's transforming into a vibrant urban center. The combination of improved infrastructure, strategic investments, and rising property values makes it an attractive option for those looking to invest in the Philippines.
Sources: Panay News, Megaworld Fort, Business Inquirer
8) Lipa City in Batangas is gaining attention for its strategic location and expanding industrial sector
Lipa City in Batangas is becoming a hot spot for real estate investors due to its strategic location and growing industrial sector.
Just 78 kilometers south of Metro Manila, Lipa City offers a perfect escape from the city's chaos while keeping you connected. The STAR Tollway has made commuting a breeze, turning Lipa into a sought-after residential and business hub.
The Lipa City Special Economic Zone, particularly the LIMA Technology Center, is a major draw. This 700-hectare area is bustling with industrial activity, hosting over a hundred businesses and providing jobs for more than 60,000 professionals.
Big names like Cal-Comp Technology have set up shop here, creating new job opportunities and giving the local economy a significant boost. The presence of industrial parks and manufacturing facilities is a magnet for various enterprises.
From logistics and manufacturing to hospitality, Lipa's industrial growth is diverse. The expansion of commercial centers, like the LIMA Central Business District, further cements its status as a business hub.
With its strategic location and thriving industrial sector, Lipa City is not just a place to live but a place to grow. Investors are taking notice, and it's easy to see why.
Sources: Lamudi, Pueblo de Oro, Inquirer Plus
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.
9) General Santos City is a real estate hotspot with economic growth and rising demand for commercial spaces
General Santos City is quickly becoming a real estate hotspot in the Philippines.
In 2023, the city's economy grew by 2.4 percent, surpassing pre-pandemic levels, which shows a strong economic foundation. This growth, while a bit slower than the previous year, still highlights the city's resilience and potential for further development. The demand for commercial spaces is rising, driven by the need for modern amenities and well-designed areas.
A key project is the redevelopment of the General Santos City Public Market into a multi-purpose town center. This transformation is a clear sign of the city's commitment to enhancing its commercial real estate landscape. The project not only offers new retail and office spaces but also boosts the city's appeal to investors and businesses.
Infrastructure development is crucial to the city's growth. The local government is focused on improving transportation and storage facilities, which has significantly enhanced connectivity. This makes the city more attractive to investors, especially with its strategic location near ports and airports.
General Santos City's strategic location is a major draw for real estate investments. Its proximity to key transportation hubs makes it a prime destination for businesses looking to expand. The city's ongoing infrastructure improvements further solidify its position as a top choice for investors.
Sources: 2024 Provincial Product Accounts of Gen. Santos City, Redevelopment of General Santos City Public Market Project, Why Investing in General Santos City in 2024 is a Smart Move
10) Cagayan de Oro is gaining interest with its growing commercial areas and rising demand for residential properties
Cagayan de Oro is rapidly becoming a major commercial hub in the Philippines.
Thanks to its strategic location and key infrastructures like the Port of Cagayan de Oro and the Mindanao Container Terminal, the city is attracting businesses and boosting international trade. This influx of commerce is transforming the local economy, making it a hotspot for investors.
The real estate market is thriving, especially in the uptown area, which is evolving into a bustling commercial center. Companies such as Pueblo de Oro Development Corp. are pouring investments into new projects, significantly increasing property values and reshaping the city's landscape.
Infrastructure improvements are also playing a crucial role. Enhanced roads and bridges are not only improving connectivity but also making the city more appealing to both businesses and residents. Cagayan de Oro ranked 7th in infrastructure in the 2023 Philippines Cities and Municipalities Competitiveness Index, highlighting its progress.
With these developments, the demand for residential properties is on the rise. People are drawn to the city for its growing opportunities and improved living conditions. The expanding commercial areas are a key attraction for potential homeowners and investors alike.
As Cagayan de Oro continues to grow, it offers a promising future for those looking to invest in property. The city's ongoing transformation is a testament to its potential as a thriving metropolis. Investors are keenly watching this upward trend, eager to capitalize on the city's growth.
Sources: Inquirer, Metro Cagayan de Misamis, Philstar
11) Cebu IT Park in Cebu City is booming with its thriving business district and high rental yields
Cebu IT Park in Cebu City is a real estate hot spot thanks to its bustling business district and attractive rental yields.
In 2023, the area boasted a vacancy rate of just 19.4 percent, the lowest in two years, showing that businesses and residents are keen to stay. This high occupancy is a green light for real estate investors eyeing the area. The property values here are climbing, driven by improved infrastructure and a lively business scene.
Multinational companies are flocking to Cebu IT Park, drawn by over 81,000 square meters of Grade A office spaces. This makes it a prime spot for businesses looking to expand. The presence of these companies highlights the area's appeal and potential for growth. High rental yields are another reason investors are interested in Cebu IT Park.
Commercial rents are stabilizing and gradually improving, which is promising for those investing in rental properties. The new Cebu-Cordova Link Expressway has made the area more accessible, boosting economic growth by making it easier for businesses and residents to get around.
With its strategic location and growing infrastructure, Cebu IT Park is becoming a magnet for both local and international businesses. The area's development is further fueled by the influx of multinational companies, which is a testament to its potential. Investors are particularly drawn to the high rental yields and the area's vibrant business environment.
As the area continues to develop, the demand for real estate in Cebu IT Park is expected to rise, making it a promising investment opportunity. The combination of a thriving business district, improved infrastructure, and high rental yields makes Cebu IT Park a compelling choice for property buyers.
Sources: Billion Bricks, SunStar, JEG Tower
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12) Santa Rosa, Laguna is booming with its closeness to Metro Manila and growing industrial parks driving property values
Santa Rosa, Laguna, is booming thanks to its strategic location near Metro Manila and the rise of industrial parks.
Living in Santa Rosa offers the best of both worlds: proximity to the bustling capital and a more relaxed lifestyle. The South Luzon Expressway makes commuting a breeze, so you can work in the city and come home to a quieter environment. This convenience is a big draw for many people looking to escape the congestion of Metro Manila.
Industrial parks like Greenfield City and Sta. Rosa Business Park are key players in this growth. They host big names like Mitsubishi Motors Philippines and Visteon Philippines, Inc., which boost the local economy by creating jobs and attracting more businesses. This influx of companies and professionals is driving up demand for both residential and commercial properties.
Property values in Santa Rosa are on the rise. In November 2024, the median home sold for $745,180, a 2.1% increase from the previous year. This upward trend is seen across various property types, with 2-bedroom homes experiencing a 4.1% price hike. The growing population and urbanization are fueling this demand, as more people flock to Santa Rosa for its opportunities and lifestyle.
Santa Rosa's appeal isn't just about work; it's also about lifestyle. The area offers a mix of urban and suburban living, with plenty of amenities and recreational options. This makes it an attractive choice for families and young professionals alike, who are looking for a balanced life.
With its strategic location, thriving industrial parks, and rising property values, Santa Rosa is becoming a hotspot for real estate investment. The combination of job opportunities and a desirable living environment makes it a compelling choice for those looking to invest in property outside Metro Manila.
Sources: Rocket Homes, Manila Bulletin, Manila Insight
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.
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