Current Trends in the Real Estate Industry in the Philippines

​Latest Updates in the Philippine Real Estate Market

With the growing economy of the Philippines, the country’s real estate industry is expected to expand significantly in the next five years. Also, the increasing purchasing power of consumers and the growing middle class help in strengthening the residential and commercial properties’ growth in Metro Manila. One of the popular trends, in fact, is sustainable constructions, with condominiums continuously getting high demands.

Growth in Real Estate Market

As for the current situation of the real estate market in the Philippines, there have been some significant improvements that can be noted. For instance, there were 13,000 units sold in 2021 and 20,000 units in 2022 – that’s a 54% increase as pre-selling in CBDs resumed after the COVID-19 pandemic. The Philippine economy is indeed showing signs of recovery and the positive trend is driven by building, manufacturing, retail and wholesale commerce as well as automotive repair.

Residential Construction Trends

In 2022, residential building permits increased by 4% from the previous year. However, residential building permit’s floor area decreased by 2.1%, while licenses saw a 10.3% decrease. In terms of land price, it depends on the residential construction type. For homeowners and those looking to invest in real estate, duplex apartments are more affordable than condominiums. The average building cost for residential units reached Php 10, 893 per square meter in 2022.

Commercial Real Estate Performance

Central Business Districts in Metro Manila is currently performing well with a 6.3% increase after adding 151, 200 condos to CBD stocks in 2022. The key contributor to this growth was the delivery of around 9,000 condo-apartments in Alabang, Fort Bonifacio, Makati, Ortigas Center, and Rockwell Center CBD. Meanwhile, the Bay Area also contributed two-thirds of additional supply to the market. Also in 2022, there are 8,970 residential units completed in the CBDs which is 2.7% higher than the previous year.

Overall Insights in Real Estate in the Philippines

With all these significant changes happening in the real estate industry in the country, more trends are emerging that investors should look out for. According to experts, the real estate market is only expected to grow and expand more in the coming years. There will also be a higher demand in residential and commercial properties. With emerging hybrid workplaces, more retail spaces will be seen on the rise, especially in Metro Manila. Increase in overseas investments as well as tourism recovery will be seen as well.
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If you’re buying a property in the Philippines, it’s always advised to seek professional assistance. Real estate is a complex industry to navigate, therefore you may contact us for specialized guidance and other inquiries to ensure you get your dream property without the hassle.