Metro Manila Property Market Set for Steady Growth in 2026, Says JLL

The Metro Manila real estate market is expected to maintain steady growth in 2026, supported by continued infrastructure development, resilient demand from homebuyers and overseas Filipinos, and sustained expansion from the business process outsourcing (BPO) sector.

According to the latest market outlook from JLL, the Philippine capital’s property market is showing encouraging signs across several sectors, including residential, office, hospitality, and logistics real estate. While developers remain cautious about supply levels and interest rates, the overall market outlook suggests that Metro Manila will remain one of Southeast Asia’s most active real estate investment destinations.

For property investors, homebuyers, and overseas Filipinos planning to purchase property in the Philippines, the 2026 outlook provides several insights into where the strongest opportunities may lie.

Metro Manila’s Real Estate Market Enters a New Growth Phase

After navigating pandemic-related disruptions earlier in the decade, the real estate sector in Metro Manila has entered a new phase of stabilization and expansion.

Several macroeconomic factors are contributing to the market’s resilience:

• Continued growth in the Philippine economy

• Strong remittances from overseas Filipino workers

• Government investment in major infrastructure projects

• Expansion of outsourcing and technology industries

• Recovery of tourism and hospitality sectors

These drivers are helping sustain demand across multiple property segments, making the Philippine capital region a focal point for both domestic and international real estate investors.

Residential Property Demand Remains Strong

One of the most important pillars of the property market is the residential condominium sector.

Despite fluctuations in interest rates and supply levels, demand for housing in Metro Manila remains strong due to several structural factors:

• Continued urban migration

• Population growth in the capital region

• Demand from young professionals

• Overseas Filipino property investments

• The need for rental housing near employment centers

Mid-market condominium developments are particularly attractive to buyers seeking both primary residences and investment properties.

Areas that continue to see consistent buyer interest include:

• Quezon City

• Taguig

• Pasig

• Makati

These cities offer proximity to business districts, commercial centers, schools, and transportation networks—key factors that drive long-term property value.

For many overseas Filipinos, condominium ownership in these locations remains a preferred investment because units can generate stable rental income while benefiting from capital appreciation.

Office Market Supported by the BPO Industry

The office sector continues to play a central role in the Metro Manila property market.

The Philippines remains one of the world’s leading outsourcing destinations, and the expansion of the business process outsourcing (BPO) industry is sustaining demand for office space.

Major office hubs in the capital include:

• Bonifacio Global City

• Makati Central Business District

• Ortigas Center

• Emerging office zones in Quezon City

Many outsourcing companies continue to expand operations as global demand for services such as customer support, IT services, finance processing, and healthcare outsourcing grows.

Although some companies have adopted hybrid work arrangements, large outsourcing firms still require significant office space for operations, training, and collaboration.

As a result, leasing activity in Metro Manila’s office market has remained active, helping stabilize vacancy levels and supporting long-term investor confidence.

Infrastructure Projects Are Creating New Property Corridors

A major catalyst for real estate growth in the Philippines is the government’s ongoing infrastructure program.

Improved connectivity between Metro Manila and nearby provinces is unlocking new real estate investment opportunities outside the capital’s traditional business districts.

Key projects contributing to this transformation include:

• NLEX–SLEX Connector Road

• Cavite–Laguna Expressway (CALAX)

• Skyway Stage 3

• Expansion of urban rail systems

These projects are reducing travel times and encouraging property developers to expand into surrounding provinces such as:

• Cavite

• Laguna

• Bulacan

• Rizal

Many of these areas are rapidly emerging as residential and mixed-use growth corridors, offering more affordable housing options compared with central Metro Manila.

For investors, these emerging locations may present significant long-term appreciation potential as infrastructure improves accessibility and economic activity spreads outward.

Hospitality Sector Benefits From Tourism Recovery

Another segment showing strong recovery is the hospitality sector.

As international travel rebounds and domestic tourism continues to expand, hotel occupancy levels in Metro Manila have improved significantly.

Key tourism and hospitality hubs in the capital include:

• Pasay (home to entertainment and gaming complexes)

• Makati

• Taguig

The resurgence of tourism is encouraging property developers to invest in:

• New hotel developments

• Serviced apartments

• Mixed-use developments combining residential, retail, and hospitality components

This trend is particularly important for real estate investors who are interested in short-term rental markets and hospitality-related property assets.

Logistics Real Estate: One of the Fastest-Growing Sectors

Industrial and logistics real estate has become one of the fastest-growing property segments in the Philippines.

The rise of e-commerce and digital retail is increasing demand for:

• Warehouses

• Distribution centers

• Logistics hubs

Many companies are expanding supply chain infrastructure to serve growing consumer demand across the country.

Industrial developments are increasingly located near major transport infrastructure such as expressways, ports, and airports.

Logistics hotspots are emerging in areas such as:

• Pampanga

• Cavite

• Laguna

For investors, logistics real estate has become an attractive asset class because of long-term lease contracts and strong demand from logistics companies.

OFW Investments Continue to Support Property Demand

One of the most reliable sources of property demand in the Philippines comes from overseas Filipino workers (OFWs).

Billions of dollars in remittances flow into the country each year, and a significant portion of these funds are used for home purchases and property investments.

Condominium units in urban centers remain particularly appealing to OFWs because they offer:

• Professional property management

• Rental income opportunities

• Strong resale demand

• Convenient locations near business districts

For many overseas Filipinos, real estate remains one of the most trusted long-term investment options.

Opportunities and Risks to Watch in 2026

While the outlook for Metro Manila real estate remains positive, market participants should still monitor several factors.

Opportunities include:

• Infrastructure-driven property appreciation

• Growing demand for rental housing

• Continued expansion of outsourcing and logistics industries

• Tourism recovery supporting hospitality properties

Potential risks include:

• Higher borrowing costs due to interest rates

• Oversupply in certain condominium segments

• Global economic uncertainties

Successful investors will need to focus on location, developer reputation, and long-term demand drivers when evaluating property opportunities.

The Outlook for Metro Manila Real Estate

Despite market challenges, the outlook for the Metro Manila property market in 2026 remains stable and optimistic.

The capital region continues to benefit from strong economic fundamentals, infrastructure expansion, and sustained demand across multiple sectors.

For property investors, homebuyers, and overseas Filipinos planning to purchase property in the Philippines, the coming years may offer strategic opportunities to invest in one of Southeast Asia’s most dynamic urban real estate markets.

As infrastructure projects reshape development patterns and new business hubs emerge, Metro Manila and its surrounding regions are likely to remain key engines of real estate growth in the country.

Source: Ziggurat Real Estate

EDSA Rebuild Opportunity

The pause in the EDSA Rebuild program ordered by President Bongbong Marcos came at the right time. As Transportation Secretary Vince Dizon underscored, a major rehabilitation of EDSA happens only "once in a lifetime." We should therefore not miss the opportunity to refashion EDSA so that it serves all of us better and correct its many defects and deficits. Before proceeding, all agencies involved should be clear on the outcomes to be achieved.

The EDSA that we need is one that is safe, walkable, green, inclusive, conducive for mass transit, accessible for persons with disability and efficient for the movement of goods and people. When road space is limited, it should be devoted to the most productive and inclusive travel modes. A lane filled mainly with private cars moves only 600-1,600 persons per hour. A lane devoted to mass transit can move 10,000-25,000 persons per hour, while sidewalks and bike lanes can move five to 10 times more people than a motor vehicle lane.

EDSA Rebuild is an opportunity for the government to give full meaning to its policy pronouncements about prioritizing sustainable transport modes — public transport, walking and cycling. Under the National Transport Policy's implementing rules, "inclusive mobility and accessibility shall be achieved through the prioritization of people-mobility over vehicle-mobility ... In addition, provision for nonmotorized and active transport, such as walking and cycling, shall be incorporated in the design and implementation of transport projects."

In addition, the Philippine Development Plan 2023-2028 declares that "pedestrians and cyclists enjoy highest priority in the hierarchy of road users." The principle of "moving people, not cars" is also echoed in the Philippine Road Safety Action Plan 2023-2028, which underscores the point that the safety of all road users is of far greater importance than enhancing the flow or travel speed of motor vehicles.

The logic is clear. The current prioritization of EDSA for four-wheeled motor vehicles makes little sense and is a waste of public resources when we consider that cars are the least efficient use of road space and are major contributors to urban traffic, heat, noise and pollution. Studies show that only 11.5 percent of Greater Manila households are owners of four-wheeled motor vehicles. This calls for a transformation of EDSA so that it serves the needs of the majority and the most vulnerable. Cars should be among the users of a redesigned EDSA, but not its top priority.

The painful lesson we have learned over decades is that an EDSA devoted to moving cars is one of the root causes of Metro Manila's traffic and mobility crisis. A car-centric EDSA compels more Filipinos to use a private motor vehicle instead of walking, cycling or using public transport. To reverse this, we need an EDSA that will serve the range of different travel modes while ensuring that the most efficient and inclusive ones are safe, convenient and attractive. For short distances, walking or cycling should become the preferred travel option — very much possible on an EDSA with spacious and shaded sidewalks.

We also need an EDSA that is compliant with various accessibility laws — an obligation that has remained unfulfilled for decades by the very agencies tasked with their implementation. Several laws already guarantee that public infrastructure should not create a barrier for persons with disability: Batas Pambansa 344, the Magna Carta for Disabled Persons and the United Nations Convention on the Rights of Persons with Disability (which has the force of law in the Philippines). In this context, all agencies involved in the EDSA Rebuild are obliged to remedy EDSA's disgraceful lack of compliance, an infrastructure deficiency that affects the lives of millions of Filipinos in Greater Manila who have some form of physical incapacity. EDSA Rebuild should demonstrate how the rights of persons with disability can be fully respected on our roads.

Every day on EDSA, there are lives lost and bodies maimed, in large part because authorities continue to give paramount importance to achieving faster vehicle speeds despite the obvious danger for all road users. EDSA was a highway decades ago, but the land uses and the urban environment are significantly different today. With EDSA traversing many dense population areas and commercial centers, it needs to serve a diverse set of road users, not only four-wheeled motor vehicles. It should be redesigned as a boulevard and no longer be an expressway.

The Philippine Road Safety Action Plan 2023–2028 calls for lower speed limits. The global safety prescription is a maximum of 30 kilometers per hour (kph) on urban roads — this is what we should push for along the entire stretch of EDSA. A lower speed limit for EDSA is already mandated by law, but ignored by concerned authorities. The Land Transportation and Traffic Code requires that the maximum speed limit should be 20 kph "through crowded streets."

Joint Memorandum Circular 2018-001 defines "crowded streets" as streets "with heavy pedestrian traffic, including all streets within a 500-meter radius of schools, public transportation terminals, markets, government buildings, churches and other places of worship, recreational places, facilities frequented by the youth, parks, shopping malls, movie houses, hotels, restaurants and other public places as may be determined by the city or municipal government."

Experience already tells us that a higher EDSA speed limit is not relevant, because average vehicle travel speeds on it are already quite low (closer to 20 kph). A car on a congested EDSA gains nothing from a higher speed limit. With a lower limit, however, we not only make EDSA safer for all, we also make alternative travel modes more attractive for everyone.

A transit- and people-oriented EDSA will have a huge positive impact on the lives of millions of Filipinos. An EDSA that prioritizes public transport, pedestrians and cyclists, and empowers persons with disability will be able to move a larger volume of people and goods using the same road space. It will be safer, healthier, greener, cooler, more inclusive, more productive, more vibrant and attractive — an EDSA that every Filipino will be proud of.

Source: Manila Times

Bulk price growth of building materials in NCR eases in May, retail price growth steadies

Wholesale price growth of construction materials in Metro Manila eased further in May, its slowest in three months, while retail price growth steadied, the Philippine Statistics Authority (PSA) reported.

Based on preliminary data, the PSA showed that year-on-year growth of the construction materials wholesale price index (CMWPI) in the National capital region (NCR) cooled to 0.2% in May from 0.3% in April.

The May reading was significantly lower than the 0.6% growth posted in May 2024.

It was also the lowest year-on-year growth in three months, when February posted no annual growth.

Year to date, May CMWPI growth averaged 0.2%, significantly lower than the 0.9% growth a year earlier.

“The downtrend in the annual growth rate of the CMWPI was mainly caused by the slower annual increase of the concrete products index at 0.3% in May from 0.5% in the previous month,” the PSA said in the report.

Concrete products accounted for 45.7% of the index.

Slower growth was also recorded in tileworks: (2% in May from 3.6% in April), and electrical works (0.3% from 0.4%).

Meanwhile, the following commodities logged faster annual declines: fuels and lubricants (-4.7% form -4%), reinforcing steel (-0.9% from 0.6%), and cement (-1.5% from -1.4%).

On the other hand, stronger growth was recorded in the index of hardware (0.4% from 0.1%), doors, jambs, and steel casement (0.5% from 0.4%)., and PVC pipes (0.6% from 0%).

In a separate report by the PSA, the construction materials retail price index (CMRPI) steadied to 1% in May, from April and from a year earlier.

The May CMRPI outcome was the lowest in 14 months or since the 0.6% in March 2024.

In the five months to May, CMRPI in NCR averaged 1.1% from 1% in January-May 2024.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices.

The PSA attributed the steady growth to slower annual increases in the following commodity groups: carpentry materials (0.1% in May from 0.4% in April), painting materials and related compounds (2.1% from 2.4%), plumbing materials (0.5% from 1.5%), and tinsmithry materials (1.3% from 1.5%).

Meanwhile, among the seven commodity groups in the CMRPI, masonry materials (1.1% from 0.6%) and miscellaneous construction materials (0.4% from 0.3%) posted faster annual growth.

Nicholas Antonio T. Mapa, senior economist at Metropolitan Bank & Trust Co., said that he expects modest growth increases in building material prices, which reflects robust but subdued demand for construction activity.

“A further reduction in borrowing costs could help spur a rise in demand for construction projects and activity in the coming months,” he said.

In its April policy meeting, the central bank slashed borrowing costs by 25 basis points (bps), resuming its easing cycle. So far, the central bank has reduced key rates by a total of 100 bps since it began its easing cycle in August 2024.

Source: Manila Times