2025 is behind us, and as the year ended, the real estate industry once again finds itself at that familiar crossroads of looking back at what shaped the market and looking ahead to what may define the next. It has become a part of a tradition, and a necessity, to sketch out the contours of the coming year. Forecasting 2026 isn’t just an exercise in prediction; it’s a way forward, it is for developers, investors, and consumers to make sense of shifting trends, recalibrate expectations, and prepare for the opportunities and challenges waiting just past the horizon.
Given the continued trend that happened in 2025, the year 2026 shows a year of continued stabilization and growth for the economy and the Philippine real estate industry. For a general start, the economy’s growth forecast in 2026 goes between 5.2% and 5.7% with some outlier forecasts of around 6.4%. This is within the target range of the Philippine government.
While 2025 is a year of recovery and growth, we can see further stabilization of markets in the real estate for next year. The capital flows will continue to normalize, and investor allocation to real estate is likely to improve in 2026.
The gainer in 2025 may continue to dominate in 2026–the industrial, logistics, and warehousing, which may continue to outperform their current numbers given the implementation of its pipeline projects this year, continued expansion of e-commerce next year, further diversification of supply chain, and improved transportation network within key growth centers in the Philippines.
Aside from the industrial sector, we may see premium offices situated in central business districts (CBDs) to continue to upscale since office developers are now institutionalizing flexible working hours setup among their workforce.
Within the CBDs, the retail sector and malls may continue to normalize as they continue to offer unique experience among mall-goers, and global brands are seen as locators in mixed-use and business districts.
Townships, mixed-use developments, and estates are likely to continue to innovate as they invite talents, skilled people, and technology. With developers activating their estates after the COVID-19 pandemic, local government units (LGUs) and institutions are influential in activating these estates not only in Metro Manila but in all major cities in the Philippines. This trend continues as consumers are more efficient in a mixed-use community where prime services are within reach.
The residential sector may have two paths–the luxury brands may continue to slow down due to global and local concerns, while the mid-market and affordable market segments may continue to gain confidence in owning a property with various competitive offerings by the developers.
The horizontal residential market may also continue to expand in suburban geography since companies are open to flexible working hours, and infrastructures are gradually expanding on a regional scale.
Aside from the real estate market, partnerships in development may continue to rise as people are now aware of accountability and transparency in governance and administration of business. The sustainability initiatives are likely to mainstream further as various tools are available for implementation to manage energy and resources. Various incentives to companies that comply with ESG are expanded, inviting more stakeholders to join the new trend. Institutions and organizations will be visible in the processing of these initiatives, so we may see investors in this field.
This 2026 is an optimistic one, coming from a year of recovery, the developers have become more adaptive and ready to take risks in innovation. The real estate industry continues to meet the needs of the market that are mobile, quick, efficient, productive, yet dynamic and agile. The national government’s thrust to transparency, better economy, and reliable infrastructure are essential keys to maintaining the momentum of growth in this industry. However, growth and resilience must always go hand in hand. Resilience comes with preparation, preparation comes with caution, and caution comes with discernment. The trends may promise consistency, but always be ready for abrupt inconveniences.
May we have a stable and expansive real estate industry in 2026.
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Joana M. Diñoso, DBA (c) is a licensed professional teacher, licensed real estate consultant, appraiser, and broker. She served as the chairperson of the Real Estate Management Program of the De La Salle-College of Saint Benilde (DLS-CSB), and is currently the dean of the Benilde School of Management and Information Technology (SMIT).
Diñoso is a managing partner of CVDiñoso Realty. She is a trustee and founding member of the Real Estate Brokers Association of the Philippines (REBAP) Global Taguig Pateros Chapter, as well as a member of the Philippine Association of Real Estate Consultants and Specialists (PARCS) and Urban Land Institute (ULI Philippines). She was likewise invited as part of the Technical Panel to gather data and publish a study on the Makati Central Estate Redevelopment Plan.
