Business Opportunities in the PH

Real Property - Apartments

Before the turn of the century, the Philippine rental housing market was a dynamic industry addressing the needs of the local workforce—who migrated to urbanized areas in search of employment. While not all houses in metropolitan areas cater to renting spaces, it has served as a viable option for those seeking to expand income via contemporary demand—apart from the fact that minimal supervision is needed for such a business. The 21st century presents a notable change in rental demands, wherein practicality has been shadowed by desirability among young professionals and rising high-net-worth individuals (HNWI) who opt for middle-to-luxurious-standard yet affordable housing options.

While Metro Manila continues to be the home of the country’s leading central business districts (CBDs), the emergence of provincial business hubs poses high potential for office space occupancy and demand for apartments as an affordable housing option. Research from CBRE Philippines, a real estate agency, presents that business process outsourcing (BPO) remains the leading driving factor for rising occupancy rates for both Metro Manila and provincial CBDs. From 2023 to 2024, Iloilo, Davao, and Cebu present the lowest vacancy rates—7 to 20% to be exact—in the provincial category; research from KMC Savills highlights that such improvements are manifestations of improved regional connectivity and industrial development via foreign-aided infrastructure projects.

Photo from Panay News

As such, the rental apartment industry is a promising and potential investment opportunity for overseas Filipinos. While the younger workforce is demanding more luxurious condominiums, there is no denying the unquestioned resilience of the humble rental apartment in the preceding decades.

Things to consider when
investing in apartments

The continuous expansion of different industries in the Philippines calls for more demand for affordable housing options that fit the standard worker’s salary expenditure structure. While the business process outsourcing (BPO) industry leads the expansion of the workforce in most regions of the country, the emergence of the food, retail, and commercial industries also contributes to housing demands.

The MRT 7 project is one of many transportation infrastructure projects that aim to further urban-rural linkages and support the expansion of different industries by improving the ease of commuting. (Photo from Global Construction Review)

Geographically speaking, it is advisable to follow the direction of the Philippine government’s infrastructural projects. These determine the trajectory of urban-regional linkages in the country, which is a glimpse into the future of industry, logistics, and other forms of productivity. Just like any other property, it is also essential to consider the vulnerability of any location to natural calamities—floods being the most common in the Philippines.

Central Business Districts (CBDs) in the country, such as Bonifacio Global City, Ortigas, Makati, and even Cebu, are few of the main drivers of apartment demand, including other forms of residential spaces. (Photo from Patrick Roque via Wikimedia Commons)

Aesthetically speaking, while the modern—and inevitably younger—Filipino local workforce has developed an elevated standard of living, the majority still prefer practicality over desirability. Hence, matters of proximity to CBDs and industrial areas are prioritized over visually pleasing spaces. Despite this, it is still important to invest in the viability of target market desirability—which depends on the roster of tastes and preference of a particular locale.

Financially speaking, while the rental industry requires minimal supervision, regular maintenance is still necessary—which may cost significantly, depending on damages incurred. In this regard, be prepared to face the challenges of calamity resilience, wear and tear of spaces and/or furniture, and other possible concerns that may emerge over time.

Recommended Steps in setting
up an Apartment Rental Business

[Disclaimer: Please still seek the expertise and guidance of a licensed broker/agent and/or lawyer.] The strategy and viability of building an apartment rental business vary by location. Still, the list below may serve as a guide for those interested in this type of venture.

1

It is crucial to do area research on the location of a rental apartment business. This will determine the viability and the return on investment one can gain. As mentioned, transportation development projects offer a glimpse into the future of investment viability through improved linkages between the urban and rural areas.

Photo from the Manila City Planning and Development Office via Wikimedia Commons

2

When time and plans are in place, purchase the lot or house where an apartment rental business can be viable. 

  • In cases where acquiring raw land before constructing an apartment is needed, refer to the steps indicated here: [link]. Furthermore, ensure that the chosen area permits the construction of residential apartments as per existing zoning regulations. 
  • The same steps may apply to purchasing a house, but this may also vary depending on jurisdiction and/or context. 

Taken from the Land Registration Authority

3

After a property purchase has been made and construction or necessary renovations are needed, it is essential to secure a Building Permit from the local government unit (LGU) before the start of any activity. Note that the requirements for such a permit may vary per LGU.

Photo from Restless Rini via Blogspot

4

It is essential to secure a barangay permit to be recognized legally by the barangay where a particular property is located. Once construction and/or renovations have been completed, it is also necessary to secure an Occupancy Permit and Business Permit from the LGU, which signifies that the apartment adheres to all existing building codes and other related laws.

Photo from the Municipality of Kalibo, Aklan

5

Determine which government agencies will grant the necessary authorization to operate as a business if the proprietorship will be solo or more than one (a partnership or corporation).

  • If a rental apartment business will only have a sole proprietor, registration with the Department of Trade and Industry (DTI) is needed to secure the business name via this link: https://bnrs.dti.gov.ph/. 
  • If a business proprietorship consists of two or more personalities, registration with the Securities and Exchange Commission (SEC) is needed and may be done via this link: https://esparc.sec.gov.ph/application. 

6

After registration with the DTI and/or SEC, securing a Bureau of Internal Revenue (BIR) Certificate of Registration is crucial. The BIR will provide the business with its Tax Identification Number (TIN) and grant the proprietor/s authority to issue official receipts/invoices for every transaction.

  • Click here to register: https://web-services.bir.gov.ph/newbizreg/. 

Photo from the Philippine News Agency

7

Proprietors/landlords are legally allowed to do the following, according to the specified provisions below:

  • The National Human Settlements Board Resolution No. 2024-01 states that rent increases can only be capped at 2.3% for the rest of 2025. This cap may change over time. 
  • Republic Act No. 9653, also known as the Rent Control Act of 2009, states that a landlord can terminate the lease contract and evict a tenant for justifiable reasons, such as not paying rent for an extended period, needing the space (but with a 30-day notice), the tenant violating the contract, and the like.

Photo from JDipterocarpus via Wikimedia Commons

In the Case of Filipinos with Dual Citizenship

While the Philippine 1987 Constitution prohibits the full foreign ownership of land, one may question if a building as a separate proprietorship is also applicable. Ownership of a building as a separate entity from the land it stands on is possible if there are present legal documents, such as an individual title or proof of ownership. In cases where no evidence of legal ownership is present, the building is also the property of the land’s owner; meanwhile, land ownership via corporation (60% Filipino-owned and 40% foreigner-owned) is possible.

Photo from the Philippine Consulate General in Chicago’s Facebook page

For Filipino dual citizens seeking to establish a rental apartment business in the Philippines, land and structure ownership are possible via Republic Act No. 9225. While venturing into the rental apartment business is highly likely, it is best to seek the guidance and expertise of a licensed broker or agent, and lawyer to ensure a meticulous process. The latter will also be possible if all necessary documents are to be processed in the Philippines. Documents processed and acknowledged in a foreign jurisdiction must be presented to the Philippine embassy for authentication. This is a crucial step to ensure no problems with the BIR for a Certificate Authorizing Registration and the Land Registration Authority for issuing a new TransferCertificate of Title are encountered.

The Philippine Embassy in Ottawa, Canada is one of many foreign posts where authentication of documents can be done. (Photo from the Department of Foreign Affairs)

Government and Non-Government
Support in Acquiring Land

Here are some programs to help Filipino dual citizens, expatriates,

and workers set up rental apartment businesses in the Philippines.

Pag-IBIG/Home Development Mutual Fund

Active Overseas Filipino members—workers and expatriates alike—of the Pag-IBIG/HDMF can avail of the different programs that can be utilized in the acquisition/purchase of residential lots in the Philippines.

 

To access their savings and loan programs, click here: https://www.pagibigfundservices.com/Views/HomePage.aspx 

 

For more information and/or detailed clarifications, you may contact/visit a Pag-IBIG representative, should there be one, in the nearest Migrant Workers Office in Philippine embassies: https://owwamember.com/polo-owwa-offices-abroad/. 

Land Bank of the Philippines (LandBank)

LandBank provides a specialized loan program for Overseas Filipino Workers, known as the Bahay para sa Bagong Bayani (3B) program. This program can be used for a myriad of residential property acquisition purposes, including land/lots.

 

More information about the 3B Program can be accessed here: https://www.landbank.com/loans/personal-loan/housing-and-mortgage-loan-program/bahay-para-sa-bagong-bayani-3b

Philippine National Bank (PNB)

While the PNB offers a general housing loan program, there is a specialized loan catering to overseas Filipinos and non-Filipinos (for condominiums only) who want to own residential property in the Philippines. The Own a Philippine Home Loan (OPHL) provides a maximum of 80% of the appraised property/contract price value. While the program’s name focuses on home acquisition, it also covers the purchase of residential lots.

 

The OPHL can be availed whilst overseas via the PNB’s overseas offices/branches in Los Angeles, New York, Singapore, Hong Kong, Japan, the Middle East, Guam, and Europe. 

 

For more information about the OPHL, please refer to the following links: 

  • https://www.pnb.com.ph/index.php/eu-ophl?tpl=revamp#faqs-eu
  • https://www.pnb.com.ph/index.php/loans-and-investments/own-a-philippine-home-loan 
  • https://www.pnb.com.ph/wp-content/uploads/docs/FAQs_OPHL.pdf 

Development Bank of the Philippines (DBP)

While it does not cater to individual loans, the DBP’s Building Affordable Homes to Every Filipino (BAHAY) program is a loan aimed at LGUs, government agencies, cooperatives, and non-government organizations (supported by a government institution or corporate entity) that want to develop socialized housing. 

 

To learn more about the BAHAY program, you may visit the DBP’s website here: https://www.dbp.ph/developmental-banking/social-services-community-development/bahay/ 

To gauge the surrounding benefits (RE), possible challenges (A), and future possibilities (L) of investing in real property, just remember that it must be REAL:

Benefits, Challenges, Possibilities

To ensure that a rental apartment business will make the most out of an apartment rental investment, just remember to recognize its benefit (A), challenge (P), and future possibilities (T):

A

ACCRUING THE BENEFITS OF A RENTAL APARTMENT BUSINESS IS INEVITABLE

This is because the rental industry’s resilient nature has already been proven and tested. As long as the local workforce pushes the housing demand, the rental industry will continue to exist.

P

PUSHING THE WORKFORCE TOWARDS WORK-FOR-HOME ARRANGEMENTS TENDS TO BE AN IMPOSING RISK FOR THE DEMAND IN HOUSING, ESPECIALLY RENTALS

Higher returns on investment rates mainly depend on accessibility and strong transportation linkages with neighboring provinces, regions, and/or cities. A recommendation would be to follow government-led transportation development projects.

T

TACTFUL LANDLORDS MAY EMERGE IN THE SUCCEEDING YEARS

This is because the demand for affordable housing continues to rise while the cost of living in urban areas increases. To retain and prolong existing leases, landlords may be lenient in maintaining income.

Information Source

  1. Ballesteros, M. M. (2003). Demand for Housing in the Metropolitan Cities of the Philippines. Transactions of the National Academy of Science and Technology Philippines, 25(2), 450-466. transactions.nast.ph. https://doi.org/10.57043/transnastphl.2003.4751. 
  2. Barnes, L. A. (2025, February 19). Philippine real estate sees growth in regional markets despite challenges in Metro Manila. Property Guru Asia Property Awards. https://www.asiapropertyawards.com/en/philippine-real-estate-sees-growth-in-regional-markets-despite-challenges-in-metro-manila/. 
  3. Catimbang, K. (2023, July 6). Really, we’re curious: Why do ‘apartments for rent’ in the Philippines look like this? Inquirer Pop. https://pop.inquirer.net/347114/really-were-curious-why-do-apartments-for-rent-in-the-philippines-look-like-this. 
  4. Creencia, G. P. (2021, July 25). Tenant and Landlord Rights. PropertyAccess Philippines. https://propertyaccess.ph/articles/post/tenant-and-landlord-rights. 
  5. Curran, J., & De Las Alas, J. (2024). Investment & Country Guide Philippines 2024. KMC Savills Research. https://kmcmaggroup.com/research/. 
  6. Curran, J., & De Las Alas, J. (2025). Investment & Country Guide Philippines 2025. KMC Savills Research 2025. https://kmcmaggroup.com/research/. 
  7. Forbes, R. (2022, December 6). MGS Insurance | Tenant’s Guide to Philippine Rental Laws. MGS Insurance Agency. https://mgsinsurance.ph/blogs/tenants-guide-to-philippine-rental-laws/. 
  8. Foreigner Property Ownership Philippines. (n.d.). Respicio & Co. Law Firm. https://www.lawyer-philippines.com/articles/foreigner-property-ownership-philippines. 
  9. Foreign Ownership Real Property Philippines. (2023, October 1). Respicio & Co. Law Firm. https://www.respicio.ph/features/foreign-ownership-real-property-philippines. 
  10. How Much is the Cost to Build an Apartment Business in the Philippines? (n.d.). The Pinoy OFW. https://thepinoyofw.com/apartment-business-cost-philippines/. 
  11. Landlord Rights in the Philippines. (2023, July 31). Respicio & Co. Law Firm. https://www.respicio.ph/features/landlord-rights-in-the-philippines. 
  12. Legal Tenant Eviction Philippines: Understanding Your Rights and Procedures. (2024, April 9). Respicio & Co. Law Firm. https://www.respicio.ph/commentaries/legal-tenant-eviction-philippines-understanding-your-rights-and-procedures. 
  13. Long-Term Land Rental in the Philippines: Legal Guidelines for Foreigners. (2025, January 29). Respicio & Co. Law Firm. https://www.respicio.ph/commentaries/long-term-land-rental-in-the-philippines-legal-guidelines-for-foreigners. 
  14. McCullough, M., & Rara, F. (2021). Investment & Country Guide Philippines 2021. KMC Savills Research. https://kmcmaggroup.com/research/. 
  15. McCullough, M., Rara, F., & De Las Alas, J. (2022). Investment & Country Guide Philippines 2022. KMC Savills Research. https://kmcmaggroup.com/research/. 
  16. Mendoza, Z. (2024, July 8). Understanding the Philippine Rent Control Law (RA 9653). Salenga Law Firm. https://philippinelawfirm.com/other/understanding-the-philippine-rent-control-law-ra-9653/. 
  17. National Human Settlements Board Resolution No. 2024-01: Rent Control Covering the Period January 1, 2025 to December 31, 2026. (n.d.). Department of Human Settlements and Urban Development. https://dhsud.gov.ph/wp-content/uploads/Laws_Issuances/07_NHSB/NHSB%20Resolution%202024-01%20(Rent%20Control%202025-2026).pdf. 
  18. Nicolas and De Vega Law Offices. (n.d.). How Can a Foreigner own a House or a Building in the Philippines? Nicolas & De Vega Law Offices. https://ndvlaw.com/how-can-a-foreigner-own-a-house-or-a-building-in-the-philippines/. 
  19. Owning Land in the Philippines. (n.d.). Philippine Consulate General – Sydney, Australia. https://sydneypcg.dfa.gov.ph/gen-info/162-land-owning-in-the-phils. 
  20. Philippine Exclusive Reports. (2023-2024). CBRE Philippines. https://philippines.cbre.com/insights/exclusive-reports. 
  21. Real Estate in the Philippines. (n.d.). Borra Law. https://www.borralaw.com/real-estate-in-the-philippines/. 
  22. Republic Act No. 9653. (2008, July 28). Senate of the Philippines. https://legacy.senate.gov.ph/republic_acts/ra%209653.pdf. 
  23. Starting an Apartment Rental Business. (n.d.). Business Coach, Inc. https://www.businesscoachphil.com/starting-an-apartment-rental-business. 
  24. Tenant Operating a Business in a Residential Property Without a Permit. (n.d.). Respicio & Co. Law Firm. https://www.lawyer-philippines.com/articles/tenant-operating-a-business-in-a-residential-property-without-a-permit. 
  25. Understanding Your Rights as a Renter in the Philippines: Addressing Unreasonable Rent Increases and Illegal Evictions. (n.d.). Respicio & Co. Law Firm. https://www.lawyer-philippines.com/articles/understanding-your-rights-as-a-renter-in-the-philippines-addressing-unreasonable-rent-increases-and-illegal-evictions. 

Photo Sources

  1. https://www.panaynews.net/bpos-would-still-drive-office-space-demand-in-2019/
  2. https://en.wikipedia.org/wiki/File:Bonifacio_Global_City_-_skyline_%28view_from_Pioneer%29_%28Taguig_and_Makati%29%282018-04-24%29_cropped.jpg
  3. https://www.globalconstructionreview.com/philippines-to-rethink-rail-schemes-after-chinese-funding-delay/
  4. https://en.wikipedia.org/wiki/File:Existing_Land_Use_Map_of_Manila_2017.jpg
  5. https://lra.gov.ph/wp-content/uploads/2022/10/TEMPLATE-DOAS.pdf
  6. https://yurismom.blogspot.com/2018/01/building-our-home-step-1-building.html
  7. https://kaliboaklan.gov.ph/business-permit-application-form/
  8. https://en.m.wikipedia.org/wiki/File:Department_of_Human_Settlements_and_Urban_Development_27.jpg
  9. https://www.facebook.com/photo.php?fbid=857165936451944&id=100064756356473&set=a.258196979682179
  10. https://www.pna.gov.ph/articles/1120524
  11. https://commons.wikimedia.org/wiki/File:MRT-7_trains_2021.png
  12. https://dfa.gov.ph/about/dfa-directory/index.php?option=com_content&view=article&id=12076&Itemid=926
  13. https://www.flickr.com/photos/44942349@N08/9688853899/in/album-72157635418358430

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