Philippine real estate sector turns corner toward recovery
The Metro Manila real estate sector has turned a corner, as the third quarter of 2025 saw strong take-ups of office spaces and middle-income condominiums in the metropolis, while mall occupancy rates are finally approaching pre-pandemic levels.
During Colliers Philippines’ third-quarter Philippine property market briefing, Colliers research director Joey Bondoc said this is due to cautious optimism about the consumer-driven economy, supported by lower interest rates and easing inflation.
Also boosting sales, he said, are the reduction in supply by developers—marked by fewer project launches and slower completions—as well as focused marketing strategies, including rent-to-own plans.
He noted that the Metro Manila residential market has seen its highest take-up in nine quarters, with a 108-percent growth in third-quarter sales to 5,900 units from 2,800 units in the second quarter of 2025.
Pre-selling of condominiums for the first nine months of 2025 surged 122 percent to 9,000 units, surpassing sales for the entire 2024. Pre-selling launches also grew 12 percent year-on-year during the period.
The lion’s share, or 94 percent, of pre-sales in the first nine months of this year was accounted for by the affordable to mid-income segments (price range of ₱2.5 million to ₱12 million). These segments also made up 74 percent of net take-ups during the period, as they saw higher sales and fewer backouts.
As of the third quarter, remaining ready-for-occupancy (RFO) or unsold inventory amounted to 30,400 units, equivalent to about eight years’ supply. The share of lower- to upper-middle-income segments was 47 percent of RFOs, down from 59 percent in 2024, while the affordable segment accounted for 35 percent.
For the office market, Colliers said net take-up in the first nine months of 2025 reached 215,000 square meters (sqm), already surpassing its full-year forecast. The firm has now revised its forecast to 285,000 sqm for 2025.
Demand continues to be driven by the traditional sector, which accounted for 53 percent, followed by third-party outsourcing (27 percent), the government (11 percent), and shared services (9 percent).
Meanwhile, the retail market’s recovery is being fueled by the entry of foreign and premium brands, as well as mall redevelopments and facelifts, with the segment expected to return to pre-pandemic occupancy rates by next year.