Metro Manila’s property market enters 2026 with sustained demand but rising competition across office, residential, retail, industrial, and hotel segments.
Office leasing surged 71.5 percent in 2025, according to JLL Philippines. The Business Process Outsourcing sector accounted for 64 percent of transactions, while corporate occupiers made up 36 percent.
Taguig City and Bonifacio Global City led activity, and Makati posted 92.2 percent year on year growth. Vacancy stood at 18.6 percent in the fourth quarter after new supply entered the market
From 2026 to 2028, around 350,000 square meters of new office space will be delivered, a pipeline considered lower than pre pandemic levels and manageable but competitive for landlords.
In residential real estate, developers are navigating excess inventory and steady buyer interest. Pre selling take up reached 78.6 percent for midscale units and 85.2 percent for upscale and luxury projects.
Demand is supported by cash remittances, which grew 3.3 percent year on year in the third quarter of 2025, reinforcing buying power from overseas Filipino workers. However, more than 30,000 unsold ready for occupancy condominium units remain in the market.
To move stock, developers are offering extended payment terms, price incentives, and rent to own schemes, especially in fringe areas such as the C5 Corridor and Katipunan where select projects have hit full absorption.
Retail property is recovering after pandemic disruptions. Store openings rose 34 percent while closures dropped 60.8 percent in 2025. Total retail supply reached 7.9 million square meters, up 1.8 percent, and rental rates increased 1.3 percent year on year with stable quarter on quarter performance. Colliers forecasts vacancy to fall below 10 percent by the end of 2026 as foreign brands expand and malls accelerate refurbishments.
Industrial and logistics assets remain the strongest growth segment. Speculative warehouse stock surged 34.2 percent, vacancy stayed below 4 percent in key hubs, and Central Luzon is expected to add 870 hectares of new supply from 2026 to 2028. The 99 year land lease law strengthens foreign manufacturing interest in sectors like semiconductors, automotive, and renewable energy.
Hotels maintained resilience with 82 percent occupancy in 2025 and more than 3,000 new rooms scheduled for 2026, supported by domestic tourism and business travel. International arrivals reached about 6.5 million in 2025, up from 5.9 million in 2024.
Infrastructure projects including the Cavite Laguna Expressway, C5 South Link Expressway, and NLEX SLEX Connector Road will improve connectivity and unlock new growth corridors.
Momentum is strong, but pricing discipline, absorption speed, and location strategy will determine who wins in 2026.
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