The Philippine Real Estate Market Today

The Philippine real estate industry opened 2026 with encouraging gains, as residential demand and property absorption improved across several sectors. However, market experts remain cautious as ongoing tensions in the Middle East may impact economic activity and investor confidence in the coming quarters.

During its first-quarter 2026 property market briefing, Colliers Philippines reported a significant recovery in residential transactions, highlighting improving buyer appetite despite a challenging global environment.

According to Joey Roi Bondoc, residential net take-up reached 2,000 units in the first quarter of 2026 — a remarkable 765% increase compared to just 228 units recorded during the same period last year.

Despite the strong start, Colliers expects overall market growth to remain relatively flat as external geopolitical concerns continue to affect the economy.

Affordable Housing Segment Drives Market Activity

One of the biggest trends seen in early 2026 is the growing demand for affordable and economic housing segments.

In Metro Manila, these segments accounted for 74% of total residential absorption during the first quarter, a significant jump from only 27% in the last quarter of 2025.

Bondoc attributed the increase to:

Flexible payment terms
Lower down payment requirements
Affordable reservation fees
Strong demand from practical end-users and first-time buyers

Government-backed housing initiatives, particularly the Pambansang Pabahay Para sa Pilipino (4PH) program, also continue to help address the country’s estimated 6.5 million housing backlog.

Condo Inventory Continues to Improve

The market also showed improvement in unsold condominium inventory.

Ready-for-occupancy (RFO) inventory declined to 27,900 units in Q1 2026 from 29,400 units in the same period last year, signaling healthier market absorption.

Colliers noted that the inventory life of Metro Manila condominiums has improved, with the market now estimated to absorb existing unsold inventory within 6.8 years.

Several major residential developments were completed during the first quarter, including:

Cirrus Residences in the C5 Corridor
Aurelia Residences in Fort Bonifacio
Cerca Viento Tower 3 in Alabang

Metro Cebu Continues to Show Market Strength

Outside Metro Manila, Metro Cebu remained one of the more stable provincial markets.

While overall provincial office transactions declined to 37,000 square meters from 55,000 square meters year-on-year, vacancy rates improved in several key regional hubs:

Davao: 7%
Metro Cebu: 16%
Pampanga: 20%

The continued improvement in Metro Cebu reflects the region’s growing appeal as a business, residential, and investment destination outside the capital.

Transit-Oriented Developments Gain Momentum

Colliers also highlighted the rise of transit-oriented developments as infrastructure projects continue to reshape urban growth.

Major upcoming transport hubs include:

Grand Central Station (target completion: 2027)
ARCA South Integrated Terminal (2027)
Metro Manila Subway Project (2032)

These infrastructure developments are expected to boost property values and increase demand in surrounding areas over the long term.

Retail Sector Moves Toward Premiumization

In the retail sector, developers and brands are increasingly focusing on premium retail experiences both inside and outside Metro Manila.

Smaller community-based retail formats are also expanding, including:

The Plaza Bagong Silang
Park Triangle Mall
The Shoppes at Park McKinley West

Retail vacancy in Metro Manila stood at 10.8% during the first quarter of 2026 and is expected to improve further to 10.2% by year-end.

Major retail projects expected between 2026 and 2028 include:

Ayala Malls Parklinks
SM Harrison
Filinvest Mall Cubao
Expansion of Fisher Mall and SM Fairview
Redevelopment of SM Megamall, Robinsons Forum, and Greenbelt 1 & 2

Outlook for the Philippine Property Market

While global uncertainties remain a concern, the Philippine property market continues to show signs of resilience through improving residential absorption, steady office demand, and sustained infrastructure growth.

Affordable housing, transit-oriented developments, and regional growth centers such as Metro Cebu are expected to remain key drivers of the market moving forward.

via MANILA BULITIN

By Carla Mortel Baricaua

Published May 18, 2026 09:52 am