Philippine Real Estate Market Remains Strong Despite Economic Challenges, Says Lobien Realty Group

The Philippine real estate market continues to show strength in the first half of 2026, even as the country faces economic and political challenges, according to Lobien Realty Group (LRG).

During its mid-year media briefing on July 9, LRG shared that the property sector remains one of the country's strongest industries despite concerns over the Middle East conflict, rising inflation, and recent political developments in the Senate.

According to LRG Founder and CEO Sheila Lobien, the real estate sector grew by 6.8% in the first quarter of 2026 compared with the same period last year. This makes real estate the third fastest-growing industry in the Philippines, behind public administration and defense and the education sector.

"Real estate as a sector grew 6.8 percent year-on-year in the first quarter despite the headwinds—that's one of the clearest signs that demand fundamentals remain intact," Lobien said.

Office Market Continues to Improve

One of the biggest drivers of the office market is the Information Technology and Business Process Management (IT-BPM) industry, which includes call centers, business process outsourcing (BPO) companies, and technology firms.

In Metro Manila, IT-BPM companies accounted for 52% of office space demand during the first quarter of 2026, up from 45% previously. This means more office buildings continue to be occupied by companies in the BPO and technology sectors.

Residential Property Prices Continue to Rise

The housing market also remained stable during the first half of the year.

LRG reported that residential property prices across the country increased by 4.5% year-on-year, showing that demand for homes and condominium units continues despite economic uncertainty.

This steady price growth suggests that many Filipinos are still buying homes, while investors continue to see value in residential real estate.

Growth Beyond Metro Manila

Warehouse and logistics developments are expanding outside Metro Manila as businesses invest in regional locations.

According to LRG, this growth is being supported by:

• New infrastructure projects

• The continued growth of e-commerce

• Improvements in supply chain and distribution networks

These factors are creating more opportunities for industrial and logistics properties across different parts of the Philippines.

Economic Outlook

Because global events can affect the Philippine economy, LRG studied several possible outcomes related to the ongoing Middle East conflict.

The firm believes the most likely scenario is a "fragile truce," meaning the situation improves but remains uncertain. Under this outlook, the Philippine economy is expected to experience:

• GDP growth of around 3.5% to 4.1%

• Inflation between 4.5% and 5.5%

• Stable remittances from Overseas Filipino Workers (OFWs) as conditions in the Middle East gradually improve

• Interest rates that may slowly decline if inflation remains under control

According to Lobien, this scenario would allow the Philippine real estate market to perform at levels similar to 2025 through the end of 2026.

What This Means for Property Buyers and Investors

Despite global uncertainties and local economic challenges, the Philippine real estate market continues to demonstrate resilience. Demand for homes, office spaces, and industrial properties remains healthy, supported by business expansion, infrastructure development, and continued housing demand.

While economic conditions should still be monitored, current market indicators suggest that the property sector remains one of the country's strongest industries in 2026.