More news about how the COVID-19 pandemic in the Philippines is being handled by the public and the government.
In the aftermath of the pandemic the Philippine property market is "evolving." This includes everything from vacancies to the reduction of construction projects.
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| https://www.manilatimes.net/2025/10/24/supplements/the-outlook-of-the-property-market-in-2026/2207412 |
INNOVATION and a subtle, but still intense, form of competition will run through the property and real estate market in 2026 as it continues to stabilize in the aftermath of the Philippine offshore gaming operator (POGO) exit and the completion of projects, which were launched pre-pandemic and were now oversupplying spaces, especially in the National Capital Region (NCR). Meanwhile, the information technology-business process management (IT-BPM) industry and the overseas Filipino worker (OFW) remittances will continue to drive demand in the office and residential sectors, respectively. Other brighter pockets for growth are the luxury market, the horizontal spaces outside Metro Manila, the retail and/or commercial sectors, the emerging industrial estate and the invisible supply chain that supports it.
These are the trends spotted in the industry for the coming year by the experts and property leaders interviewed by The Manila Times for this publication. Although broader in nature and by definition, “trends” would be the best description for the movements they anticipate will happen in 2026 and beyond. All of the interviewees separately have said to this writer that forecasts for 2026 and their supporting numbers will be difficult to give, as the statistics for the second half of 2025 are still being compiled, studied and analyzed. These figures would be released only near the end of the year. As such, most of the figures cited here are based on the interviewees’ own company reports, released during the first half of the year, which they deem still relevant to this discussion.
Sheila Lobien, CEO of full-service real estate consultancy and property investments strategy firm Lobien Realty Group Inc. (LRG), explains her confidence in the rebound of the real estate industry which has been experiencing elevated vacancies and sluggish-to-slow movements the past two years.
“The Philippines has a resilient and a growing economy, which is very supportive of a recovering real estate industry,” she says.
The LRG research ranks the Philippines as the second-fastest growing economy in Southeast Asia as of Q1 2025 with the country’s gross domestic product forecasted to grow by seven percent in the next 12 months.
She adds that it is time to study the current market and, “Take the opportunity to invest in quality development in a good location at the best terms.”
One point of recovery is the reduction of the levels of vacancy that have bogged down both the office and residential markets since the pandemic. According to the report of professional services and investment management company Colliers Philippines, as of H1 2025, there are 2.9 million square meters of vacant office space in Metro Manila, due to the aforementioned POGO exit; the non-completion of projects for, often, economic reasons; and the companies’ decisions to downsize or customize their office requirements.
The addition of more square meters to this number, which can elevate the vacancies further, will slow down, says Colliers Philippines Research Director Joey Roi Bondoc.
“If you look at 2026 to 2027, we will be seeing less completion of projects because those that were launched during the pandemic in 2022 to 2023 were substantially reduced. Developers also extended the time and period of construction” in contrast to pre-pandemic activity, which saw the acceleration of the completion of offices and condominiums,” Bondoc says.
The Colliers report also projects that the vacancies in the condominium units in the NCR will ease by 2026 and continue to drop in 2027. The 24.5 percent vacancy in the region as of Q2 2025 is expected to rise to 25.8 percent by year’s end.
What can drive the growth both in the office and residential sectors are the IT-BPM industry and the OFW remittances. First, when it comes to the former, the LRG study says, as of Q2 2025, 40 percent of the demand for office space comes from the business process outsourcing (BPO) industry, coming in second to traditional companies (46 percent). Government offices rank at No. 3 at nine percent.
Lobien foresees this trend continuing despite the Trump administration’s swing toward more protectionist policies such as limiting the outsourcing of work to other countries.
“Many US companies that already have a presence in India and Europe want to expand to the Philippines,” she says. “They go first to where they are confident of finding qualified talent [such as] Metro Manila. But once they’ve reached critical mass, they go to the other cities [such as] Pampanga and Cebu.”
One trend that can happen in 2026 is making the workspace a more balanced, comfortable and yet, productive environment for the employees they want to keep, says Toby Miranda, head of Investments & Capital Parkets of real estate agency Santos Knight Frank Philippines Inc.
“The BPO sector and the whole working environment has adapted post-pandemic,” he says. “A lot of occupiers are really mindful of how they want to retain their employees by providing more than just a workstation or a workplace.”
Meanwhile, OFWs who want to give themselves and their family a permanent safe home they can call their own will fuel the demand for residential spaces, says the LRG report; the OFWs remittances grew by 2.6 percent in March 2025 with the cumulative total reaching $9.4 billion.
Bondoc says Filipino homeowners today have more choices in the selection of their properties. Many of them, especially those with younger and growing families, are leaving the confines of the NCR for more spacious locations that sell property at more affordable prices.
As a result, residential hubs have begun to and will continue to rise in areas such as Batangas, Bulacan, Cavite, Laguna and Pampanga in Luzon. Bacolod, Cagayan de Oro, Cebu, Davao and Iloilo in the Visayas-Mindanao areas have experienced similar movements.
The demand for horizontal spaces such as a lot or a house and a lot, almost always found outside the NCR, is also increasing. As such, condominium developers, who want to attract and/or keep these young middle-income-market customers, will have to offer something more such as a “ready-for-occupancy unit, which can have furnishings and where the new owner can quickly move into while expecting quality and convenience,” says Bondoc.
Regardless of the new homeowners’ location, Miranda says they are increasingly looking for “the 15-to-20 minute neighborhood,” where the urban design and planning allows for a lot of greenery, walkable paths, and easy, safe connectivity to crucial centers such as offices, schools, transport terminals, churches, hospitals, and malls and shops.
“I believe the age of the gated village, which belonged to the previous generation, is about over,” Miranda adds.
One trend that will continue is the growth of malls, stores and other retail centers, says Lobien. E-commerce and online shopping have boomed and have become a lifestyle for many Filipinos, but unlike in the West, these platforms have not led to the closure of malls.
“Malls are a destination and a civic place for Filipinos,” says Lobien. “They are a one-stop shop and a place for reunions. Some malls also have churches, where you can worship. They are also connected to transportation hubs. The Philippine lifestyle is different; that’s why the commercial sector will remain strong.”
Connected to the commercial sector is the industrial sector, which Lobien identifies as a growing market. One area to watch, in particular, are the “super warehouses,” which are the hubs that store a wide range of items from food, clothes, toys and books to medicine, to name just a few. The surge in online shopping, which has been triggered by the pandemic and which will not slow down, has made real-time delivery vital, making logistics, operations and the entire supply chain evolve with the times. Goods have to be packaged safely, stored and preserved, and then, delivered punctually and without any kind of disruption to the buyer.
“Many developers are getting into this, especially because they themselves are the ones who are strong in retail and the commercial sector,” says Lobien. “Some components in the supply chain have to be sophisticated [such as] cold storage, where vaccines from pharmaceutical companies are stored.”
The luxury market is also evolving and rising to its unique set of challenges, despite its stability, says Bondoc. Condominium units that are priced at least P20 million are moving, shifting from one investor to another. Repeat buyers show up and engage during the launch of new luxury properties. The developing trend in this market is the building of more spectacular amenities to draw in even more moneyed, high-powered clientele.
Bondoc calls the trend “hyper-amenitized condominiums”.
“What we are seeing are two to three floors of amenities, where you can have your own bar, cinema, coworking space and several pools — not just one — in that amenity area. The basics — a pool, gym, café [and] children’s center — are not enough anymore,” Bondoc says.
Developers of all kinds of properties will have to level up in 2026 if they are to increase their share of their specific markets. In many cases, they have to exercise flexibility. All these can combine to reveal opportunities for all participants if they become discerning and look hard enough.
Lobien summarizes a few of them, saying: “On one side, Filipinos, who do have the resources and are looking for property in the residential area, will find that it is currently a buyer’s market. On another side, there are companies coming in from the US, which will continue to push the expansion of the BPOs (business process outsourcing companies). It can be cost-effective now to rent offices. We do have many clients looking at good deals.”
This is mostly about workspaces that it is the residential market. Businesses have cut back to save costs and recoup losses from the pandemic.
The Philippines continues to lag behind in fiscal recovery in Asia.
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| https://mb.com.ph/2025/10/23/high-debt-spending-curbs-cause-philippines-to-lag-asia-in-fiscal-recovery |
Fitch Solutions’ unit BMI expects the Philippines’ fiscal deficit to narrow to 5.5 percent of gross domestic product (GDP) as government spending slows following the flood control fiasco, but the country is projected to recover more slowly than its regional peers.
“We expect a narrower fiscal deficit for the Philippines of 5.5 percent in 2025, down from 5.7 percent in 2024,” BMI said in a commentary published on Thursday, Oct. 23. Its forecast matches the government’s target.
For 2026, a narrower deficit would be supported by a “one-off privatization amounting to 0.3 percent of GDP, which the government has penciled in for 2026.” Its 5.4-percent forecast is a tad wider than the government’s target of 5.4 percent.
Meanwhile, BMI believes relying on non-tax collections is “fiscally unfeasible over the long run.”
It noted that the country’s public finances remain fragile, with the share of debt to output rising to around 60 percent from 40 percent before the Covid-19 pandemic.
The government aims to achieve a debt-to-GDP ratio of around 60 percent by the end of the Marcos administration in 2028.
“This places the country among the regional laggards in fiscal recovery,” BMI said, adding that “elevated borrowing costs and a narrow revenue base further limit Manila’s ability to deliver large-scale fiscal support without compromising debt sustainability.”
Total revenues collected through August reached ₱3.09 trillion, 3.3 percent higher than last year’s ₱2.99 trillion. This represents 68.4 percent of the revised full-year target of ₱4.52 trillion.
Meanwhile, public spending as of end-August expanded 7.1 percent to ₱3.95 trillion from ₱3.69 trillion a year earlier. This stood at 65 percent of the revised full-year target of ₱6.08 trillion.
“The slowdown in spending was due to curbs on pre-election spending and weak infrastructure disbursements,” BMI noted.
Infrastructure and other capital outlays declined by 21.8 percent to ₱84.9 billion in August, compared to ₱108.6 billion in the same month last year.
According to the Department of Budget and Management (DBM), the reduction could be blamed mainly on the “ongoing validation of the status of implementation, quality, and completion of infrastructure projects implemented by the DPWH [Department of Public Works and Highways] nationwide.”
Year-to-date, the government’s infrastructure spending decreased by 5.6 percent to ₱798.4 billion from ₱845.3 billion in the same seven-month period last year.
Despite this downturn, BMI still expects the spending shortfall to narrow, but it will likely fall short of the ₱1.51 trillion full-year target.
“Budget Secretary Amenah Pangandaman has warned that government spending may slow as the probe into alleged corruption intensifies,” BMI further noted.
Infrastructure spending is expected to hit ₱1.56 trillion in 2026, ₱1.69 trillion in 2027, ₱1.9 trillion in 2028, ₱2.03 trillion in 2029, and ₱2.2 trillion in 2030.
It's all due to a slow down in government spending which means a lower GDP.
Apparently gambling ia a cornerstone of the Philippines' tourism comeback post-pandemic.
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| https://thechronicle.com.ph/integrated-resorts-power-countrys-tourism-comeback-pagcor/ |
Integrated resorts have become the cornerstone of the Philippines’ post-pandemic tourism and economic revival, according to Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro H. Tengco.
Speaking before business leaders, tourism stakeholders, and government officials at the Exceed Hospitality 2025 forum at SMX Aura in Taguig City, Tengco said integrated resorts have transformed into “dynamic lifestyle and business hubs” that are redefining the country’s hospitality and entertainment landscape.
“Gaming, entertainment, and hospitality are not separate worlds but interconnected forces that drive growth, create jobs, and enrich the tourism experience,” Tengco said, addressing members of the Italian Chamber of Commerce in the Philippines.
Citing industry data, Tengco reported that the gaming and entertainment sector continues to rebound strongly, with gross gaming revenues soaring from US$3.75 billion in 2022 to US$6.5 billion in 2024—a remarkable 75 percent surge in just two years.
He said PAGCOR has been taking concrete steps to ensure this growth remains sustainable and inclusive by modernizing its regulatory framework, strengthening oversight, and promoting responsible gaming practices.
To protect both the public and legitimate operators, PAGCOR has launched a nationwide campaign against illegal gambling, imposed stricter guidelines on gaming-related advertisements, and prohibited gambling promotions in public spaces and during primetime viewing hours.
“At PAGCOR, responsible gaming is not just a slogan but a commitment—to protect the vulnerable, uphold transparency, and preserve public trust,” Tengco emphasized.
Tengco also urged tourism and gaming stakeholders to align with the twin forces shaping the future of hospitality: digital transformation and sustainability.
“The future of hospitality is being reshaped by technology and sustainability,” he said. “We must ensure that every guest experience also contributes to local well-being.”
Looking ahead, Tengco affirmed PAGCOR’s dual role as both regulator and catalyst for responsible growth.
“Our collective success depends on finding balance between progress and preservation, profit and purpose,” he said. “Together, we can build destinations that are not only profitable but also meaningful and inspiring.”
Don't they want people going OUT of the hotels to spend money?
In Cebu hotel occupancy has fallen to pandemic-era levels.
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| https://cebudailynews.inquirer.net/665303/hotel-occupancy-in-cebu-falls-to-pandemic-era-levels |
Cebu’s hotel and resort sector is keeping its doors open and operations running normally despite a sharp decline in occupancy, worsened by the recent series of earthquakes that shook the province.
The slump in hotel bookings began early this year, according to the Hotel, Resort and Restaurant Association of Cebu, Inc. (HRRACI), the largest hospitality-oriented organization in the province.
But when the powerful 6.9-magnitude earthquake struck northern Cebu last September 30, it triggered millions of pesos in cancellations, shaking tourist confidence and discouraging both domestic and foreign travelers.
“Many, if not all, hotels in Cebu are experiencing cancellations amounting to millions of pesos worth of room and event bookings for October all the way until the first quarter of 2026,” said Mia Singson-Leon, HRRACI president and general manager of Quest Hotel Cebu.
Despite the mounting losses, HRRACI and its members continue to operate under “business as usual” conditions, Singson-Leon added. The province’s hospitality establishments remain open and safe for visitors, she pointed out.
The decline in hotel bookings represents some of the lowest business levels since the pandemic years, according to industry players.
The current challenge is driven not by mobility restrictions but by shaken traveler confidence amid ongoing tremors, safety concerns, and broader geopolitical uncertainties.
Estimates show that hotels in Mactan are operating at 25 to 50 percent occupancy, while those in Cebu City are faring slightly better at 40 to 60 percent.
“We are looking at numbers that are comparable to 2020 and 2021,” said Singson-Leon. “In terms of business, it feels like the pandemic again, though without lockdowns or restrictions.”
Facing steep declines in bookings and events, hotels have been forced to adopt cost-cutting measures and more aggressive marketing strategies to stay afloat.
“We are all doing our best to be smart and strategic,” said Singson-Leon.
Some of the measures implemented by HRRACI members include eliminating non-essential spending and placing employees on furlough until occupancy improves.
At the same time, hotels and resorts have launched promotional rates in hopes of attracting as much of the local market as possible.
Some hoteliers are also doubling down on social media campaigns emphasizing Cebu’s readiness and safety to reassure potential visitors.
Meanwhile, HRRACI is urging the government to roll out support measures to help the tourism and hospitality sector recover.
Among their key appeals are increased safety assurance programs, rehabilitation aid for affected communities, and marketing initiatives to restore Cebu’s image as a secure travel destination.
Despite the current downturn, HRRACI remains hopeful that Cebu’s hospitality industry will begin to rebound early next year.
This optimism is fueled by the government’s easing of visa restrictions for travelers from Taiwan, India, and China, and by airlines adding more international routes to Cebu.
“But as of now, our pace of bookings for the fourth quarter of 2025 and January 2026 is still behind the previous year’s trends. It’s really still a waiting game,” said Singson-Leon.
It's all because of the recent earthquakes though which can't be planned for.
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