Infra milestones to drive PHL real estate growth in 2026

THE PHILIPPINE real estate market could see continued expansion in 2026 as major infrastructure projects near completion, improving connectivity and opening new locations for development.

According to JLL Philippines, a real estate advisory and professional services firm, the completion of key transport links is expected to influence investment and development opportunities in emerging areas.

“Our outlook for 2026 reflects cautious optimism as we anticipate steady market ascent while navigating supply absorption dynamics, infrastructure project timelines, monetary policy impacts, and tourism recovery,” Janlo de los Reyes, head of research and strategic consulting at JLL Philippines, said in a report.

Several transport projects scheduled for completion are expected to improve access to areas surrounding Metro Manila. These include the Cavite-Laguna Expressway (CALAX), the C5 South Link Expressway, and the NLEX-SLEX Connector Road. MPCALA Holdings, Inc., a unit of Metro Pacific Tollways Corp. (MPTC), has tapped CM Pancho Construction, Inc. (CMPCI) and listed builder EEI Corp. to complete remaining works for CALAX.

Improved connectivity from these projects is expected to support real estate activity and help unlock development opportunities in provinces adjacent to Metro Manila, JLL Philippines said.

Mr. De los Reyes said Metro Manila’s development pipeline through 2030 indicates continued market confidence, with new supply planned across the office, retail, residential, hotel, and logistics sectors in several surrounding provinces.

The projected expansion in 2026 follows stronger activity across several property segments in 2025.

In the office sector, gross leasing volume rose by 71.5% year on year, reflecting increased tenant activity.

“The office market showed sustained positive leasing activity in the fourth quarter of last year. If you look at the full year number, it’s close to around one million square meters (sq.m.) of office transactions. This marks the highest volume since 2022, maintaining the upward trajectory of leasing demand over the same time period,” Mr. De los Reyes said.

The logistics and industrial segment may benefit most directly from improved infrastructure. In 2025, warehouse inventory expanded by 34.2% in speculative stock as developers positioned projects in logistics hubs.

Strong demand has kept vacancy rates below 4% in specific locations, namely Cebu, Metro Manila, Pampanga, Batangas, and Laguna.

Improved connectivity may also influence the retail and residential sectors. Retail activity rebounded in late 2025, with new store openings increasing by 34%.

The residential market also remained supported by remittances from overseas Filipino workers (OFWs), which rose by 3.3% and continued to support demand for midscale and luxury condominium units.

As major transport links approach completion, property activity may gradually expand beyond Metro Manila’s traditional core areas, potentially supporting broader regional development in the coming years.

MPTC is the tollway arm of Metro Pacific Investments Corp. (MPIC), one of three main Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — A.G.C. Magno