The Philippine real estate landscape reflects how far the country has developed advancements in different sectors. Increased purchases of raw land, houses, and condominiums among overseas Filipinos prove the vitality of the real estate industry in overall national development, among others. While there is prejudice in the purchase process for each category that varies and is inevitably arduous, the existing laws in the Philippines provide a sense of ease and a direct approach.

Though the COVID-19 pandemic affected economic activity in the different sectors of society, the Philippine real estate market continues to rise by addressing the dynamic demands of various industries and individuals despite facing challenges in the past years. The year 2020 saw the rise in activity of the e-commerce industry in the entirety of the Asia-Pacific region, hence triggering demand in the real estate sector, particularly to address warehouse and logistics demands—which then paves the way for demand in food, retail, telecommunications, education, manufacturing, and other industries. Apart from such, different forms of real property also achieved resiliency through their conversion into alternative quarantine spaces (i.e., hotels).

In the Philippines, the progress of the real estate sector can be observed in the demand for residential property, whether it be via purchase or rent. Research from Santos Knight Frank reports that from 2020 to 2024, studio and one-bedroom units in condominiums are the most preferred residential properties in most areas of Metro Manila. This research is reflected in the rise of high net worth individuals (HNWIs) from different industries in the metro—including Cebu—and the development of transportation, hence its resilience in the pre-and post-pandemic economy. Despite fluctuating growth and decline in the latter eras, residential property has proven its dynamic nature by becoming short-term rental spaces via Airbnb and other platforms. The year 2022 saw optimism in the residential market due to the ease of health restrictions and recovery in labor activity. 2023 saw not just the demand from emerging HNWIs but also interest from foreigners seeking to invest in residential property. For this reason, developers regained confidence in constructing more projects. 2024, on the other hand, saw a preference for second homes outside Metro Manila, with almost 42% in selling rates, and Tagaytay being the most favored location. Today, the condominium remains the most preferred residential property among emerging HNWIs.

As the third-largest English-speaking country, the Philippines is home to the ever-expanding business process outsourcing (BPO) industry. Santos Knight Frank reports that workers from the said industry are also crucial in navigating the demand for office space property apart from residential property. The COVID-19 pandemic’s effect on the flow of day-to-day business, particularly the need for work-from-home/remote arrangements, has impacted the preference of the applicable general workforce—BPOs included. While most office space landlords in the Asia-Pacific region experienced the need for leniency, tenant-friendly payment options, and even cancellations of leases from 2020 to 2022, post-pandemic return to physical working spaces pushed for further demand and occupancy—despite the still high vacancy rate at present. Metro Cebu differs, apart from its strong tourism economy, due to its high demand for both office space and residential properties due to the emergence of IT-BPO companies and Philippine Economic Zone Authority (PEZA)-certified buildings, making it the ideal alternative to Metro Manila’s central business districts (CBDs). Developments in transportation have further strengthened this, linking different cities and provinces to each other—which also supports development in commercial, retail, and institutional development.

From 2023-2024, the Philippines boasts a competitive labor rate and business-friendly policies under the Marcos Jr. administration—PEZA incentives being one of many benefits. While vacancy rates continue to fluctuate over time, the rise of co-working spaces has been highly evident, given that 28% of the Filipino workforce favors remote/work-from/home set-ups and most have begun to prefer freelancing. Given this trend, some landlords have converted former office and commercial spaces to cater to such a demand—further proving the resilience of the real property sector to the ever-changing times. While more and more co-working spaces may emerge due to the prevailing preference of the workforce for remote/work-from-home set-ups, 51% of office space occupiers in the Asia-Pacific region are leaning on enhancing the quality of space to reimagine work environments befitting contemporary standards.

As of 2024, retail/commercial spaces have been integrated with residential spaces and transportation hubs to promote a community-oriented lifestyle and heed the demands of everyday life in most CBDs—particularly with the needs of the general middle-class workforce and HNWIs. This narrative is borne out of developers' confidence in 2024 that the latter's growth will trigger demand for more developed projects. While this form of improved living has sprung in the metro, more and more development projects continue to emerge in the provinces—forged by further advancement in transportation linkages—in response to the needs of rising/potential CBDs.