Christy Balita
Research expert covering the Philippines
Residential real estate in the Philippines - statistics & facts
Homeownership is a dream for many in the Philippines. However, urbanization has created a huge demand for housing in major cities, making these areas crowded with not enough land area for residential development. As a country with a population of about 112 million people and a density of 382 people per square kilometer, homeownership is also challenged by inflation, income disparity, and the increased risk of natural calamities that could force people out of their homes at any time. Despite this, foreign investments, and remittances from overseas Filipino workers (OFWs) have sustained the demand for condominiums and even luxury housing.
For metropolitan cities like Metro Manila, Cebu, and Davao, renting apartments, purchasing rent-to-own units in subdivisions, and taking a lease in a condominium are quite common. Residential developments in these areas have recently grown thanks to the rise of commercial and business enterprises, such as malls, hotels, and manufacturing hubs. In Metro Manila alone, the number of completed condominium units jumped from 11,200 in 2019 to 155,000 in 2023. About half of occupied condominium units were classified as lower mid-income, and the average selling price depended on the area of the property, reaching as much as 225,000 Philippine pesos per square meter as of the second quarter of 2022.
The Philippines has also seen a growing demand for high-end homes, fueled by an appetite to invest in high-quality units that incorporate comfort and functionality. In 2023, 11 percent of luxury condo units were occupied in Metro Manila. Meanwhile, among other provincial residential hubs, Pampanga dominated the luxury market take-up in 2022, followed by Cebu and Bacolod.
Characteristics of housing in the Philippines
According to the 2020 census, there were about 28.5 million housing units in the Philippines, a large volume of which were in Regions IV-A, the National Capital Region (NCR), and Region 3. The majority of these were single houses, with a floor area between 10 and 29 square meters, as revealed by a 2022 survey. When it comes to the status of tenure, 62 percent of households surveyed own the house and lot they occupy, while less than one percent live rent-free on a lot without the owner’s consent.For metropolitan cities like Metro Manila, Cebu, and Davao, renting apartments, purchasing rent-to-own units in subdivisions, and taking a lease in a condominium are quite common. Residential developments in these areas have recently grown thanks to the rise of commercial and business enterprises, such as malls, hotels, and manufacturing hubs. In Metro Manila alone, the number of completed condominium units jumped from 11,200 in 2019 to 155,000 in 2023. About half of occupied condominium units were classified as lower mid-income, and the average selling price depended on the area of the property, reaching as much as 225,000 Philippine pesos per square meter as of the second quarter of 2022.
The Philippines has also seen a growing demand for high-end homes, fueled by an appetite to invest in high-quality units that incorporate comfort and functionality. In 2023, 11 percent of luxury condo units were occupied in Metro Manila. Meanwhile, among other provincial residential hubs, Pampanga dominated the luxury market take-up in 2022, followed by Cebu and Bacolod.
The need for affordable housing
Despite the growing market for mid-range to luxury housing, the backlog for affordable housing in the Philippines was estimated at 6.7 million units in 2021, particularly in urban areas. Government agencies have been focusing on building socialized and low-cost homes to address the need for affordable housing. In 2022, the National Housing Authority (NHA) finished building 33,500 housing units, most of which were dedicated towards permanent housing for calamity victims and its resettlement program. Price ceilings for socialized subdivisions and condominium projects were also adjusted to encourage private sector participation.
