Manila, the bustling heart of the Philippines, has long been known as a hotbed of real estate activity. From high-rise condos to sprawling subdivisions, the city’s property market has seen significant growth over the years. However, with shifting economic conditions, market trends, and a global pandemic disrupting various industries, some might wonder—do people still buy property in Manila? If so, why? And if not, what’s holding them back?
This blog aims to answer these questions by examining Manila’s real estate landscape, exploring what continues to draw potential buyers, and identifying the factors influencing decision-making.
Understanding the Manila Property Market
The buy Manila property market is shaped by a combination of urbanization, economic progress, and the unique needs of its population. Before examining buyer behaviors, it’s crucial to understand the trends and forces molding the sector.
Rising Urbanization Driving Real Estate Growth
Metro Manila remains a hub for business, education, and culture, making it a prime location for professionals, students, and families. Its strategic location, combined with ongoing infrastructure projects like the Metro Manila Subway and more elevated roads, makes it a key attractor.
According to a 2023 Colliers Philippines report, demand for residential properties in Metro Manila shifted towards smaller condominiums as urban professionals began returning to the city after pandemic-induced remote work trends. These properties aren’t just for living—many are viewed as investments due to the potential for rental income.
The Impact of the Pandemic
COVID-19 temporarily disrupted the real estate market, halting construction and dampening property sales. However, the market has since rebounded, with increased interest evident amongst overseas Filipino workers (OFWs) and investors. Data from Bangko Sentral ng Pilipinas shows that remittances from OFWs grew during the last quarter of 2023, significantly contributing to property investments back home.
Market Challenges
It’s important to note that not everything is rosy. Rising interest rates and higher prices for land and construction materials have deterred some potential buyers. Despite these challenges, Manila real estate is holding steady, reflecting its unwavering appeal over the years.
Who is Buying Manila Property Today?
Despite potential hurdles, people are still actively engaging in Manila’s real estate market. Here’s a closer look at the profiles of today’s typical property buyers:
Young Professionals and First-Time Buyers
Thanks to flexible payment terms and loan options, many millennials and Gen Z professionals are entering the property market. These buyers are drawn to affordable condo units, often located in central business districts like Makati, Taguig, and Ortigas. These areas offer seamless access to work, entertainment, and lifestyle hubs.
OFWs with Long-Term Investment Goals
OFWs continue to be a major driving force behind Manila’s property sales, treating real estate as a long-term investment. They are primarily motivated by the opportunity to generate passive income through rentals or to secure homes for their families.
Property Investors
Both local and foreign investors are keen on the Manila market, owing to the demand for rental properties. Areas near prime job locations, universities, or tourist attractions are particularly popular for those seeking an ROI boost.
Why Do People Continue Buying Property in Manila?
There are several reasons why Manila retains its appeal for property buyers, including key advantages that make it stand out in the competitive global real estate landscape.
Accessibility and Strategic Location
Metro Manila serves as the economic, political, and cultural center of the Philippines. Its close proximity to essential institutions, multinational companies, schools, and hospitals makes it a strategic location for property investment. Transportation infrastructure upgrades—like new train systems and expressways—continue to sweeten the deal.
Urban Conveniences
The convenience of being close to work, groceries, entertainment, and healthcare keeps properties in the metro attractive. Even amid higher density, developers are designing more integrated communities that offer open spaces, gyms, pools, and vibrant commercial areas to enhance modern living.
Reliable Investment Opportunity
Real estate remains a tangible and relatively secure investment. With steady rises in property values over time, many view Manila real estate as a way to diversify assets, safeguard finances, and, in the case of rental properties, generate steady cash flow.
Flexible Financing Options
Local banks and developers now offer more buyer-friendly payment schemes, including long-term mortgages, low down payments, and zero-interest installment plans. This has expanded access for Filipinos who were previously unable to afford property.
Challenges That Could Hinder Buyers
Of course, like any market, Manila’s real estate sector has its share of challenges that could cause hesitation among buyers.
Increasing Property Prices
Home prices have risen by more than 10% in key Metro Manila areas over the last five years, according to data from Statistica. This makes it increasingly difficult for middle-income buyers to afford homes in premium locations.
Rising Interest Rates
The higher borrowing costs following the Bangko Sentral ng Pilipinas’ rate hikes have made loans less accessible to prospective buyers. Buyers now think twice about locking themselves into long-term loans with steep monthly repayments.
Urban Congestion
While Manila offers many conveniences, its traffic congestion and overcrowding deter some buyers. Many professionals are now interested in relocating to suburban locations like Rizal and Cavite for peace and proximity without sacrificing their lifestyle.
Evolving Lifestyle Trends
Post-pandemic, some people are prioritizing space and outdoor living, driving them farther away from apartment complexes in Metro Manila.
Tips for Prospective Buyers in Manila
If you’re considering purchasing property in Manila, here are some tips to help you make informed decisions:
- Evaluate Your Needs: Are you buying for personal use, investment, or rental income? Answering this question will help you narrow down your choices.
- Research Locations: Choose neighborhoods that match your needs. For example, Makati is ideal for professionals, while Quezon City might suit families due to spacious homes and schools.
- Assess Payment Schemes: Compare payment schemes from banks and developers to secure one most favorable to your circumstances.
- Consult a Real Estate Agent: Real estate professionals can help guide you to deals suited to your budget and preferences.
- Stay Updated on Incentives: Some developers offer special rates and discounts for early-bird buyers or special occasions.
Final Thoughts – Is Manila Property Still Worth Considering?
Do people still buy Manila property? The answer is a resounding yes, but with conditions. While challenges like affordability, rising interest rates, and lifestyle shifts must be factored in, the city’s consistent appeal due to its location, opportunities, and conveniences ensures its spot in the investment portfolios and personal plans of property hunters.
For many, buying property here is more than a decision—it’s a commitment to urban vibrancy, diversity, and long-term growth. Whatever your buying purpose may be, Manila’s dynamic real estate market is rich with opportunities waiting to be explored.
Looking to take the next step? Explore available properties at Property Pulse and sign up for updates on the best offers in Manila’s real estate market.
