As The Philippine STAR marks its 39th anniversary this July, the theme “R39ENERATE”calls attention to how individuals, institutions, and industries are transforming with purpose. In a time shaped by digital disruption, misinformation, and economic uncertainty, regeneration isn’t just about survival—it’s about strategy. It’s about finding new strength in familiar foundations. And nowhere is this more evident than in the Philippine real estate market.
In the first half of 2025, the country’s property sector is showing that resilience and renewal can go hand in hand. According to Santos Knight Frank, the market remains solid amid shifting global conditions, evolving with insight, guided by data, and energized by new opportunities for homeowners, renters, and investors alike.
Policy changes build investor confidence
Two key reforms are helping shape this future: the extension of land leases to 99 years and the passage of the Capital Markets Efficiency Promotion Act (CMEPA).
“More than pricing, the effects of these policy shifts are geared towards empowering investors,” explains Toby Miranda, director and head of investment & capital markets at Santos Knight Frank. “Longer lease periods make land leases more attractive, especially for foreign investors who are looking for long-term stability in their property dealings.”
The CMEPA, signed into law in May 2025, is also creating more favorable conditions for raising capital and expanding real estate portfolios.
“These measures incentivize both institutional and individual investors,” Miranda adds. “It’s making it easier for companies, including property developers, to raise capital and build more projects.”
With more flexibility in land tenure and a stronger REIT ecosystem, the groundwork is being laid for more inclusive, long-term real estate growth.
The buyer-renter dynamic is evolving
As developers recalibrate, Filipino buyers and renters are doing the same, especially younger professionals who are carefully weighing timing, flexibility, and value.
“There’s an observed increasing sentiment towards renting instead of buying, especially among younger demographics,” says Anjo Sumait, head of residential services at Santos Knight Frank. “But for those who are interested in buying properties, it’s a good time to take advantage of lower selling prices and aggressive promotions, especially for primary sale. Developers have been offering longer payment periods for equity. Some are even offering furniture and appliances.”
The mid-income condo segment in NCR has seen softened demand, opening opportunities for savvy buyers. Meanwhile, outside Metro Manila, horizontal developments in Cavite, Batangas, Pampanga, and Bulacan continue to draw strong interest as buyers seek more space, lifestyle amenities, and access to upcoming infrastructure.
Real estate remains a reliable hedge
In the face of market uncertainty, property remains one of the safest investment options, with potential for both capital appreciation and rental yield.
“Real estate has always been considered among the safest assets to invest in,” Miranda shares. “With prices going down, it could be a good time to buy and then sell at higher prices when market conditions improve.”
He highlights the growing opportunity in dorms and co-living spaces, which are becoming increasingly viable as more people buy outside NCR and rent near urban centers for accessibility and career flexibility.
The regenerative shift is real
Across all segments—residential, office, industrial, and hospitality—the market is shifting, not passively, but with purpose. Office demand remains steady, especially in BPO-driven hubs. CALABARZON and Central Luzon continue to attract strong industrial demand. Meanwhile, tourism is gaining ground again, with iconic hotels making strategic comebacks in emerging destinations like Cebu and Clark.
“As economic tides shift, real estate reaffirms its place as the gold standard of investment,” says Rick Santos, chairman & CEO of Santos Knight Frank. “It offers long-term value, enduring stability, and tangible growth opportunities.”
This is the story of regeneration—not a return to the old ways, but a readiness for what comes next. Philippine real estate is not just bouncing back—it’s moving forward, building smarter, and holding steady for those bold enough to lead with purpose.
Key metrics to watch include:
Foreign exchange rate – favorable for OFWs, challenging for local buyers
Interest rate – influences loan affordability
Rental yield – measures income return potential
Along with vacancy rates and capital values, these indicators help guide investors toward resilient, informed decisions.
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