Even with global challenges and local issues, the Philippine real estate market continues to show many positive developments. According to Rick Santos, Chairman and CEO of a global real estate services firm, the industry is currently going through a "recalibration"-a phase of adjustment that is bringing new opportunities for investors, developers, and homebuyers.

During their media briefing on Dec. 3, Santos and his team highlighted several important trends shaping the market today:

Key Trends They Noted:

• Stronger government policies that help build investor confidence

• Growing office demand driven by the IT-BPM sector

• More real estate projects rising outside Metro Manila

• An increasing number of modern, high-quality malls opening in provincial cities

A Big Policy Change: The 99-Year Land Lease Law

One of the most significant developments this year is the signing of the 99-year land lease law. Santos shared that this new rule:

• Gives investors and developers long-term security

• Makes it easier to fund large projects

• Helps attract more foreign investments

• Encourages stronger partnerships between local owners and international investors

• Places the Philippines on the same level as other ASEAN countries offering long-term leases

Office Sector: IT-BPM Continues to Drive Demand

The office market remains active, mainly because IT-BPM companies continue to expand.

As of 2025:

• 461,245 sqm of office space has been taken up year-to-date

• 8.9 million sqm of office space now exists in Metro Manila

• 328,000 sqm of new supply was added this year

• 1.5 million sqm more is planned from 2026 to 2029, especially in Quezon City, Taguig, and Ortigas

Vacancy in Metro Manila sits at 21%, but experts say this is mostly because many older buildings (from the early 2000s) no longer meet modern standards. These buildings may eventually be renovated, redeveloped, or replaced.

Meanwhile, newer office buildings remain attractive because companies now prefer spaces that are energy-efficient, tech-ready, and environmentally friendly.

Taguig commands the highest asking rent at P1,242/sqm/month, which is 23% higher than the Metro Manila average.

Residential Market: Growth Expands Beyond Metro Manila

Developers are now launching more residential communities just outside Metro Manila. Homebuyers are looking for:

• Bigger living spaces

• Better lifestyle features

• More affordable options

This shift is creating new growth corridors where developers are building mid-rise condominiums and horizontal communities.

Within Metro Manila, the pipeline remains focused on premium and high-end developments, such as:

• Laurean Residences by Ayala Land

• Uptown Modern by Megaworld

Both scheduled for completion by 2030.

Manila also remains a strong performer globally, ranking 5th in Knight Frank's Prime Global Cities Index with a 9.1% year-on-year increase in luxury property prices-showing that it is still one of the most affordable yet fast-appreciating luxury markets in the world.

Retail: More Modern Malls Rising Across the Country

The retail sector is also expanding as consumer spending continues to grow. Major developers are opening new malls in provincial areas, many designed to match the quality of Metro Manila's top shopping centers.

More international brands are entering the Philippine market, including:

• Fashion: Maje, Alice + Olivia, Sandro

• Lifestyle & sports: Alo, Oysho, Wilson

• Dining: Smith & Wollensky, Niku Niko Oh!! Kome, Dave & Buster's

Market Ready for Reinvention

Overall, Santos emphasized that the Philippine real estate market remains resilient and full of potential. Growth is no longer concentrated in Metro Manila—major developments are rising in Cebu, Pampanga, Davao, and New Clark City, signaling a more balanced and nationwide expansion.

Across different sectors—office, residential, and retail—the market is adjusting and opening new opportunities, especially for investors looking for long-term value.