CEBU CITY – Delays in the issuance of licenses to sell (LTS) are slowing housing production, delaying investments, and taking a toll on the Philippine economy, real estate industry players warned.

The Accredited Real Estate Salespersons of the Philippines (ABREP) urged the government to resolve the prolonged regulatory bottlenecks.

Anthony Leuterio, national president of ABREP, said developers recently met with government officials to discuss the slow processing of LTS applications by the Department of Human Settlements and Urban Development (DHSUD).

In the meeting, ABREP emphasized the need for immediate attention as project launches are stalled due to the absence of required permits.

According to Leuterio, developers are pressing the government to accelerate the release of LTS after only 93 permits have been issued so far this year, compared to more than 800 to 900 in 2025.

“They need to catch up because there will be an issue on the economic side,” he said.

The LTS is a regulatory requirement that allows developers to legally market and sell subdivision lots and condominium units.

Leuterio said prolonged delays are disrupting project timelines, discouraging new investments, and reducing housing production despite sustained demand.

“There will be big demand, but housing production will be lower,” he said.

He warned that the slowdown could trigger job losses across construction and allied industries, weaken economic growth, worsen the country’s housing backlog, reduce government revenues from taxes and permit fees, and dampen investor confidence.

Real estate and construction directly and indirectly employ millions of Filipinos, including engineers, architects, contractors, brokers, and service workers.

Delayed projects also reduce demand for construction materials and transportation and professional services, weakening the sector’s multiplier effect on the economy, Leuterio added.

Concerns raised by developers mirror those of property consultancy Colliers Philippines, which described delays in LTS approvals as an emerging headwind for the Philippine property sector.

Joey Roi Bondoc, head of research at Colliers Philippines, said prolonged processing of LTS applications has become one of the industry’s most pressing regulatory challenges because developers cannot legally market residential projects without first securing the permit from DHSUD.

“The LTS issue would be a major concern,” Bondoc said, noting that the delays affect both developers planning new investments and buyers looking for more housing options.

From an economic standpoint, slower approvals restrict the pipeline of projects entering the market, reducing available inventory even as demand for housing remains resilient.

“You’re restricting the available supply in the market,” Bondoc said. “If you don’t build now, how can you entice potential buyers? The availability of supply is very important.”