By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor
The Philippine real estate market has been showing remarkable resilience on the back of the country’s economic momentum. While economists posit that natural disasters and the ongoing corruption scandal involving government flood control projects may dampen economic growth in the third quarter, the Philippines maintains an optimistic target of 5.5%-6.5% growth amid a gloomy global environment.
Inflation remains subdued at an average of 1.7% for the first nine months of the year. Recently, the Bangko Sentral ng Pilipinas Monetary Board even lowered benchmark borrowing costs for a fourth straight meeting, bringing the policy rate to 4.75%.
Such an environment tempered headwinds in the property market. For the residential sector in particular, while Metro Manila continues to see dampened take-up for mid-income condominium projects, the same cannot be said of luxury and high-end developments.
According to real estate analysts Colliers Philippines, the sluggish take-up in mid-income markets prompted major property developers into “aggressively offering attractive and innovative” ready-for-occupancy promos to lure buyers, including hefty discounts for spot cash purchases, extended terms, free appliances, and other concessions. The promos appear to be working, with Colliers recording improved take-up practically across all condominium price segments in Metro Manila.
“What we are seeing now is a more pronounced influx of luxe — high-end property developments dominating supply thru new launches and demand as represented by positive net take-up for luxury to ultra luxury units,” Colliers said in their Q2 2025 Property Market Report.
It is clear the Filipino market still has a healthy appetite for new developments. The slow take-up within Metro Manila only signals to developers that Filipinos are becoming more discerning with their real estate purchases, particularly with their location and value. Property firms, Colliers noted, have become more prudent with their launches within and outside Metro Manila, taking advantage of a consumer base that was “awash with cash and proactively taking advantage of capital value appreciation opportunities even outside Metro Manila.”
A separate report by property experts Cushman and Wakefield pointed out that decentralized growth is becoming more prominent as investment activity spreads into regional hubs outside the country’s capital, bolstered by improved infrastructure and local economic development.
According to the firm’s Q2 2025 Philippine Office and Investment MarketBeat Report, urban professionals and mid-market buyers are driving demand for suburban hubs in Cavite and Laguna. Regional hubs like Cebu, Clark, and Davao are gaining traction as decentralization creates opportunities for future-ready developments in secondary markets.
“The Philippine real estate market continues to reflect the country’s economic momentum, driven by strong consumption patterns, tourism recovery, and advancing logistics demands. Each sector is adapting to the evolving needs of end-users, creating long-term opportunities for developers and investors alike,” Claro Cordero, director and head of Research, Consulting & Advisory Services at Cushman and Wakefield, said.
“Investors are now shifting their focus to secondary markets, which offer more attractive entry points and opportunities for diversification,” said Mr. Cordero.
The mark of luxury
At the same time, sustainability is also taking center stage across these developments, with property firms increasingly prioritizing green-certified and disaster-resilient buildings to align with long-term environmental goals.
The idea of a residential community that engenders a holistic, sustainable lifestyle has become the defining trend of the next generation of real estate. As hybrid work models continue to grow more popular among millennials and Gen Z professionals, developers have started focusing on offering wellness-oriented spaces and flexible living terms.
“These trends reflect a shift in how businesses view real estate — no longer just as a functional space but as a strategic asset that supports growth, sustainability, and employee well-being,” Mr. Cordero said.
This is especially true for higher-income households. The flush of new luxury residences in the market is capitalizing on the demand for living spaces that prioritize good design, privacy, and high-end amenities.
“Today’s high-end investors value tourism-driven developments that seamlessly integrate thoughtful design, privacy, and personalized service with lifestyle-enhancing amenities such as wellness facilities, curated leisure spaces, and tech-enabled living,” Elizabeth Ventura, president of luxury real estate developer Anchor Land, said in an email.
“For them, true luxury lies not only in the quality of life but also in long-term wealth preservation — owning a tourism-inspired property that balances exclusivity, functionality, and investment stability in a prime, strategic location.”
Sustainability, Ms. Ventura noted, has become a mark of true luxury. Investors are increasingly drawn to properties that emphasize efficiency, sustainability, and long-term livability. Modern developments now commonly feature green spaces, natural ventilation, energy-efficient systems, and smart home technologies, reflecting a broader shift toward wellness-oriented and environmentally conscious design.
“We’ve embraced this evolution at Anchor Land. Integrating smart technology is no longer an afterthought but a key principle embedded early in our design process. Our team actively keeps pace with the latest advancements in green architecture and collaborates with regional experts to ensure our developments meet global sustainability standards,” she said.
“We also place great importance on open, breathable spaces — seen across all our projects through offerings that range from resort-style settings to pockets of gardens thoughtfully woven into expansive outdoor amenity floors — promoting a lifestyle centered on wellness, comfort, and balance,” Ms. Ventura said.
Real estate has always mirrored the economy, but today it also mirrors changing aspirations. A resilient economy may have opened doors, yet it is discernment that is defining the next evolution of the Philippine residential property market.
Developers are no longer competing on scale or speed, but on purpose — designing homes that use less, last longer, and respond to the way Filipinos actually want to live.
