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The Makati-Taguig skyline in this photo taken on April 12, 2024.   Gigie Cruz, ABS-CBN News

Article (news)

PH ECONOMY

Jekki Pascual

MANILA -- The real estate sector is expected to grow in 2026 following a year of challenges for the Philippine economy and global headwinds. One of the key drivers of growth is the expansion beyond Metro Manila.Real estate services firm Santos Knight Frank said 2025 was filled with geopolitical risks and local political issues, which also affected the country’s <a href="https://www.abs-cbn.com/news/business/2025/11/7/ph-economy-grows-4-pct-in-q3-slower-than-previous-quarter-0920" rel="noopener noreferrer" target="_blank">gross domestic product</a>. But with the ongoing reforms, the company is expecting a better year for the property sector.“I think this is a time of great opportunity. Time for a reset, a repositioning in the market. I think real estate is always seen as a safe haven in times of trouble,” said Rick Santos, Chairman &amp; Chief Executive Officer of Santos Knight Frank.The growth can be attributed to the rising demand in the provinces for all sectors of the real estate industry, including office, residential, industrial, and hospitality.“We’ve seen also increased demand for Metro Cebu, Angeles, Bacolod, Iloilo, Davao, even in Zamboanga. Residential developers have also been much more aggressive in pushing for developments outside Metro Manila- in Cavite, Laguna, Batangas, Pampanga, and Bulacan,” Santos told reporters.The company said developers and consumers look at the provinces due to cost efficiency, strategic proximity, and the acceleration of gentrification. There are also fewer spaces left in Metro Manila.This is why the growth driver for Metro Manila is the upscale or luxury segment. Many developers have launched several projects under this category. This segment is not reliant on mortgage or interest rate movements.Santos also said there is still growth in the upscale market amid the flood control controversy, which may have affected the purchase of luxury goods and even properties.“There is demand for the high end residential market. There will continue to be demand- whether that’s from local investors, international investors… We don’t see any massive shifts in the market that could change the trajectory we’re all in,” Santos said.For 2026, they expect growth to continue with the expansion of information technology-business process management (IT-BPM) companies and because of the new law on the 99-year land lease, which will make the local industry more attractive to foreign investors.The firm also cited growth in the data center business and the launch of more global hotel chains in the Philippines. In the pipeline for 2026 are Canopy by Hilton in Makati, Sofitel Cebu, and the 1,530-room Mövenpick Manila Bay Westside, among many others.

The real estate sector is expected to grow in 2026 following a year of challenges for the Philippine economy and global headwinds.

The real estate sector is expected to grow in 2026 following a year of challenges for the Philippine economy and global headwinds.

Real estate sees growth in provinces, luxury segment boom in NCR

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Real estate sees growth in provinces, luxury segment boom in NCR

Jekki Pascual

Published December 03, 2025 05:57 PM PHT

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real estate

luxury

Santos Knight Frank

Metro Manila

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