Metro Manila’s property market faces headwinds, with rising vacancies and cautious investor sentiment. Still, Pasay City, a dynamic gateway to the capital, continues to defy the odds. Nestled between Parañaque, Manila, and Makati, Pasay leverages its strategic location, infrastructure boom, and thriving mixed-use hubs to offer investors and homebuyers a compelling opportunity, as it remains a beacon of resilience and growth.
Strategic location and unparalleled connectivity
Pasay’s proximity to critical transport nodes solidifies its appeal. The Metro Manila Subway, set to partially open by 2029, will feature stations in Pasay, linking it directly to Quezon City and NAIA Terminal 3 in under 30 minutes, as shared by Department of Transportation (DOTr) Undersecretary for Railways Jeremy S. Regino. Concurrently, the NAIA Rehabilitation Project aims to double passenger capacity, reinforcing Pasay’s role as a global gateway. And with the upcoming New Manila International Airport (Bulacan International Airport), Pasay’s central location ensures seamless access to multiple aviation hubs, boosting its appeal for logistics and hospitality ventures.
Thriving mixed-use developments and tourism demand
Pasay’s Entertainment City, a $1.2 billion integrated resort zone, anchors its tourism economy. Casino hotels and resorts have driven high foot traffic, with PAGCOR reporting a 51% net income surge in 2024. Several lifestyle hubs continue to expand, blending retail, leisure, and residential demand. The Pasay Bay City reclamation project, spanning approximately 265 hectares, promises futuristic commercial and residential spaces, cementing the city’s status as a go-to live-work-play destination.
Stronger public-private partnerships (PPPs)
The Pasay City government and national agencies are prioritizing infrastructure upgrades. The C-5 South Link Expressway and NAIA Expressway (NAIAX) have slashed travel time to Cavite and Laguna, attracting workforce housing demand. PEZA-registered IT centers that cater to BPO firms provide offices to those seeking affordable yet central workplaces. Tax incentives for eco-friendly developments have also further enhanced investor appeal.
Resilience in rental demand and capital appreciation
Despite Metro Manila’s office vacancy rate hitting 19.8% in 2024, according to Colliers’ latest property market report, Pasay’s Bay Area maintains stable occupancy, driven by traditional office sector, BPOs, and flexible workspace providers. While the city’s residential leasing segment may have a vacancy rate of 52%, rental rates are expected to decrease by 1.5% in the first quarter of the year, giving occupiers the opportunity to take advantage of enticing promotions and discounts in renting properties.
Future-ready urban planning
Pasay’s ambitious 15-Minute City and the EcoCity initiatives emphasize convenience and sustainability, featuring low-carbon mobility networks, dedicated bike lanes and walkways, and ecologically beneficial public spaces. These projects are partnerships between the local government unit (LGU) and private developers, ensuring smart, community-centric designs that align with ESG trends.
Pasay City’s blend of location, innovation, and resilience makes it a rare bright spot in today’s market. Despite market challenges, strategic infrastructure, tourism-driven demand, and forward-thinking urban plans position it as a prime investment haven. For investors, discounted valuations and long-term infrastructure tailwinds create an ideal entry point while evolving communities promise convenience and growth for families. As Metro Manila’s property cycle pivots, Pasay stands ready to soar—proving that vision and strategy prevail even in uncertainty.
