PH property sector’s 2026 outlook mixed

Expect a “mix of headwinds and tailwinds“ in the Philippine property sector in 2026, said Joey Roi Bondoc, director and head of research at real estate services and investment management firm Colliers Philippines.

On the upside, the Metro Manila office market is showing signs of recovery and will improve next year, Bondoc pointed out, noting the recovery will be driven by IT-BPM firms and traditional corporate occupiers.

Other forecasts, according to Bondoc:

From 2026 to 2028, about 350,000 sq m of new office space will be delivered — significantly lower than pre-pandemic levels, but ensuring manageable supply.

Prime central business districts (CBDs) such as Makati and Bonifacio Global City will lead rental recovery, while flexible workspaces will expand aggressively in Cebu, Pampanga, and Iloilo, supporting decentralization and business continuity strategies.

Unsold houses

On the downside, as of the third quarter, the Metro Manila residential sector had over 30,000 unsold, ready-for-occupancy units for which real estate developers offered promos such as extended payment terms and rent-to-own schemes to increase mid-income sales amid elevated mortgage rates.

However, the C5 Corridor and Katipunan areas continue to draw buyers, with take-up rates reaching up to 100 percent for select projects.

Industrial estate, hotel markets

Central Luzon is seen to dominate the industrial estate market. Colliers projects 870 hectares of industrial land to be delivered from 2026 to 2028, quadruple the pipeline of Southern Luzon.

Despite low foreign visitors, the country’s hotel market benefits from domestic tourism and various meetings, incentives, conferences, and exhibitions (MICE).

Over 3,000 new hotel rooms are to be completed in 2026 in Makati and the Manila Bay Area, Bondoc said.

The retail property trends remain strong, with Metro Manila vacancy to fall below 10 percent by end-2026. Foreign brands and aggressive mall refurbishments are driving demand, while developers expand outside Metro Manila into Cebu, Bacolod, and Davao.

To achieve growth, developers must embrace diversification, invest in emerging growth corridors, and leverage technology-driven solutions to stay competitive amid shifting demand patterns, Bondoc advised.

“To thrive in this cyclical market, developers must future-proof strategies — diversify portfolios, invest in suburban growth corridors, leverage industrial expansion, and embrace flexible workspace solutions. Capitalizing on retail refurbishments and innovative residential promos will be key to staying competitive in the evolving Philippine real estate market,“ Bondoc said.

Source: Manila Times