Philippines Real Estate Guide

The primary allure of the Philippines lies in its structural growth. Unlike mature markets facing stagnation, the Philippines is in a cycle of rapid physical transformation. An expert highlights that government spending on infrastructure: roads, railways, and airports, is the "defining growth driver" for 2026. This is not just about paving roads but also unlocking land values in previously inaccessible areas.

“Infrastructure will be the defining growth driver... improving connectivity and long-term property values nationwide.”  Ayala Land

Real estate demand is fuelled by people and jobs. The Business Process Outsourcing (BPO) sector continues to expand, acting as the backbone for office absorption and middle-class housing demand. According to Vocal Media, the country’s burgeoning middle class and urbanization are key drivers of the market's projected value of USD 135.9 billion by 2034.

A game-changer cited by Santos Knight Frank is the newly signed 99-year land lease law. This reform is expected to significantly boost foreign investor confidence, particularly in the industrial and manufacturing sectors, by offering long-term tenure security previously unavailable to international investors.

Prioritizing the latest data from IQI Global, the market ended 2025 on a remarkably strong note. While headlines often focus on oversupply, Emmanuel Andrew Venturina, Head of IQI Philippines, reported that residential demand in suburban townships increased by double digits.

• Price Performance: Metro Manila prices rose 6–8% year over year.

• Absorption: Top projects in Quezon City and Taguig achieved 70–80% take-up within months of launch.

However, investors must navigate this carefully. Colliers Philippines and GMA Network warn that while the "overhang" of unsold condos has dropped to 7.9 years (from over 13 years), it is still significant. This creates a distinct buyer’s market, where developers are offering aggressive, flexible payment terms to move-ready-for-occupancy (RFO) units.

The return to the office is real. IQI Global data shows that net office absorption in Metro Manila hit 450,000 sqm in 2025, a 15% increase from the prior year. Grade-A offices in Bonifacio Global City (BGC) and Ortigas are maintaining occupancy rates above 90%. On the retail front, foot traffic has recovered to 95% of pre-pandemic levels, driving high-street rents in Makati up by 4%

It is not all smooth sailing. Inquirer.net reports that inflation ticked up to 2.0% in January 2026, largely driven by a rise in housing and utility costs.

• Electricity: Up 6.5%.

• Rent: Up 2.9% due to start-of-year adjustments by landlords. This inflationary pressure means savvy investors need to ensure their rental yield calculations account for rising operating costs.

Source: Global Property Guide & Numbeo

Expert Insight: “Yields are improving. In Q4 2025, the average gross rental yield stood at 5.23%, up from 5.12% in Q1.” — Global Property Guide

While rental income provides cash flow, capital growth builds wealth. The Bangko Sentral ng Pilipinas (BSP) RPPI report noted a moderate 1.9% growth nationally, but a much stronger performance in "Houses" (up 13.1%) versus condominiums (down 0.2%).

Think of it this way: the condo market is currently in a "clearance sale" to address oversupply, which is slightly suppressing prices. Meanwhile, land and house values are surging as supply becomes scarcer.

The most straightforward path for foreigners is buying a condominium.

• The 40% Rule: Foreigners can own up to 40% of the units in a single condominium project. The remaining 60% must be Filipino-owned.

• Full Ownership: You get a Condominium Certificate of Title (CCT), which grants you full ownership of the unit (air rights), but not the land underneath it.

Generally, foreigners cannot own land. However, there are workarounds:

• Corporation: A corporation that is at least 60% Filipino-owned can buy land.

• Inheritance: Land can be acquired through hereditary succession.

• Leasing: Foreigners can lease land for a long term (initially 50 years, renewable for 25).

• New 99-Year Lease: As highlighted by Santos Knight Frank, the new law allowing 99-year leases for commercial/industrial purposes is a major breakthrough for institutional investors.

1. Check the "Oversupply": Before buying a condo, ask about the building's vacancy rate. If it's over 15-20%, negotiate hard for a discount.

2. Verify the Developer: Stick to blue-chip names to ensure project completion.

3. Inspect RFO Units: With a glut of Ready-For-Occupancy units, you can often view the unit before paying. Don't buy off-plan unless the presale price is significantly lower.

4. Calculate Total Acquisition Costs:

• Documentary Stamp Tax: 1.5%

• Transfer Tax: 0.5% - 0.75%

• Registration Fee: ~0.25%

• Notary Fees: 1% - 2%

• Total hidden costs usually add 8% to 12% to your purchase price.

Local banks can lend to foreigners, but approval is stricter. Expect higher interest rates. Bambooroutes notes that holding property for 5 to 7 years is the ideal timeframe to realize a profit, accounting for transaction costs.

Want to buy a house in the Philippines now? Let our expert lead you the way! 

You might be interested in this guide:

Guide for Foreigners Buying Property in the Philippines

Yes, it is largely considered a "buyer's market." With a high condo inventory (7.9 years of oversupply), developers are offering attractive terms. An expert suggests this is a stabilization phase where buying power is high.

No, foreigners generally cannot own land directly. They are limited to owning condominium units (up to 40% of a project) or leasing land. However, corporations with 60% Filipino ownership can purchase land.

Taguig (Bonifacio Global City) currently leads the prime market with yields potentially reaching 7.2%, followed closely by Manila City and emerging provincial hubs in Pampanga.

As of January 2026, Inquirer.net reports inflation at 2.0%, slightly higher due to rising housing rents and utility costs.

This is a new policy signed into law (Aug 2025), allowing foreign investors to lease private land for up to 99 years for industrial and commercial use. Colliers notes this will make the Philippines more competitive against Vietnam and Thailand for foreign factories.

Based on the PropertyGuru Asia Property Awards, top developers include Aboitiz InfraCapital (Best Industrial), Robinsons Offices (Best Office Interior), and Ayala Land (known for premium residential townships).

Not entirely, but it is improving. GMA Network reports the oversupply dropped from 13.4 years to 7.9 years by early 2026. This indicates the market is slowly absorbing the stock, but investors should still be selective.