Our July 2025 edition of the report provides the latest updates in the Philippine commercial real estate industry as well as insights on the local sectors.
- Despite softer regional growth, the Philippines offers a strategic investment window. Easing inflation, declining rates, and resilient domestic demand support attractive risk-adjusted returns—especially in commercial real estate with strong long-term potential. Investors, developers, and occupiers across office, retail, and industrial can leverage current conditions to optimize portfolios, secure favorable financing, and lock in quality space ahead of the next upcycle.
- Expansion outside of the main CBDs signals purposeful decentralization: stronger infrastructure, skilled regional labor, and materially lower setup and operating costs than major CBDs. Advanced facilities outside Metro Manila unlock cost-efficient resources and under-tapped talent, improving margins and scalability. For investors, developers, and office occupiers, these locations offer compelling risk-adjusted returns and operational resilience, positioning portfolios for efficient growth across the Philippines.
- Investor caution is warranted amid rising risks. Uncertain U.S. tariff policy now applies a 19% rate to select Philippine exports, erasing prior ASEAN advantages. With tariff incentives constrained, competitiveness must shift to non-tariff levers: modern logistics and transport infrastructure, skilled labor pipelines, and predictable, efficient regulation—key for institutional buyers, global manufacturers, and developers seeking high-quality, globally competitive industrial capacity.
The above is an excerpt of the July 2025 report. Read the full report.
