By Beatriz Marie D. Cruz, Reporter
A LAW extending land lease terms for foreign investors to as long as 99 years is expected to boost activity in the Philippines’ industrial and hospitality real-estate sectors this year, analysts said.
“Industrial and hospitality projects are expected to benefit the most from the law, which can support the already solid interest in these sectors,” Janlo C. De Los Reyes, head of research and strategic consulting at JLL Philippines, said in a Viber message.
He added that the longer lease period could boost the value of real-estate developments starting this year, as it provides investors with greater security and predictability.
“The extended land lease law grants them comfort in developing large-scale and complex projects as it offers stability of tenure to afford longer investment horizons,” he said.
President Ferdinand R. Marcos, Jr. signed Republic Act No. 12252 or the Investors’ Lease Act into law in September, extending the maximum lease term for foreign investors to 99 years from 50 years.
On Dec. 19, the Department of Trade and Industry (DTI) and Land Registration Authority signed the rules that will enforce the law. The DTI said the rules lay out administrative safeguards to protect landowners and lessees, while establishing clear procedures and timelines for government agencies to process lease applications.
“If you’re a major manufacturer investing billions of dollars in the Philippines and you want to have greater economies of scale a longer land lease is more stable,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said by telephone.
Mr. Bondoc said the measure could also encourage more foreign hospitality brands to expand their presence in the country, potentially boosting tourism activity and employment.
“There could be some strategic joint ventures and partnerships between a foreign player and local [hospitality] brands,” he said.
Rick M. Santos, chairman and chief executive officer at Santos Knight Frank, said a 99-year land lease could lead to deeper partnerships between local landowners and foreign investors.
He added that the law supports the growth of real estate investment trusts, citing Santos Knight Frank’s third-quarter property report.
However, analysts said structural challenges still need to be addressed to fully attract foreign investments into the sector. Mr. Bondoc said issues such as ease of doing business and governance concerns remain key considerations for investors.
Data from the Philippine Statistics Authority showed that approved foreign investment pledges fell 48.7% to P73.68 billion in the third quarter of 2025 from a year earlier, partly due to weaker investor sentiment amid a corruption scandal involving flood-control projects.
