July 31, 2026
Halfway through 2026, the Philippine real estate sector is still proving to be resilient despite economic shocks from the Middle East crisis, as well as uncertainties from recent tumultuous movements in the Senate. According to Sheila Lobien, Founder and CEO of Lobien Realty Group (LRG), real estate as a sector grew 6.8 percent year-on-year in the first quarter, calling it one of the clearest signs that demand fundamentals remain intact.
Lobien shared these findings during LRG's mid-year media briefing on July 9, which covered the future of the Philippine real estate sector, its emerging trends, investment performance, and opportunities. LRG's research showed that real estate, at 6.8 percent, ranks as the country's third-highest-growth sector, trailing only public administration and defense (12.7 percent) and education (10.1 percent), and ahead of wholesale and retail trade, transportation and storage, and financial and insurance services. This growth is attributed to strong housing demand, residential developments, and property rental growth.
Given global economic uncertainty, LRG modeled three scenarios around the Middle East crisis, assigning a 50 percent probability to a "fragile truce" base case — a middle-ground outcome Lobien described as "not the best but still not the worst." Under this scenario, GDP would range from 3.5 to 4.1 percent, inflation from 4.5 to 5.5 percent, and the peso-dollar rate between P59 and P61, with OFW remittances stabilizing as the Middle East region normalizes. In this scenario, the real estate sector should perform close to 2025 levels through the end of 2026.
On the office front, BPO firms are projected to bring in 70,000 new employees in 2026, requiring at least 300,000 square meters of space, and now account for 52 percent of total space leased — up from 45 percent in earlier quarters. Lobien noted that while BPOs remain the top occupier, hybrid and work-from-home arrangements mean they're not growing at pre-pandemic levels, with government agencies emerging as a strong contender given their budgets for upgrading offices and facilities.
On residential, Metro Manila condominium prices rose 3.7 percent year-on-year and 13.2 percent quarter-on-quarter, while the overall national price index grew 4.5 percent year-on-year. Notably, the Greater Manila Area — CALABARZON, Central Luzon, and nearby provinces — has overtaken the NCR in residential loans granted (40 percent vs. 29 percent), driven by emerging infrastructure, post-pandemic demand for bigger homes, and lower property prices. Lobien also highlighted the national housing backlog of 5.8 million homes as a longstanding opportunity, particularly in the affordable and economic low-cost housing range of P2.5 million to P10 million per unit.
Finally, the Philippine warehousing market, valued at $441.7 million in 2025, is projected to grow at a 5.2 percent CAGR over the next eight years, with occupiers focusing on Batangas, Cavite, and Laguna, while lower land costs and expressway connectivity have positioned Clark and Central Luzon as the country's fastest-growing logistics hubs. Despite global headwinds, LRG's report concluded that Philippine real estate — particularly office and industrial — is positioned to remain a relative bright spot through year-end.
Read the full article here:
https://www.manilatimes.net/2026/07/15/business/real-estate-and-property/philippine-real-estate-sector-still-resilient-mid-year-despite-ongoing-headwinds-lobien/2384780
Balance Greater Metro Area (GMA) continues to have the highest loan share in the residential market, while Southern and Central Luzon maintain their leadership when it comes to the industrial market, specifically the warehouse market. Lobien Realty Group (LRG) presented these trends during its mid-year media briefing on July 9.
Property developers in the Philippine office market have become more strategic during the first half of 2026, with many choosing to prioritize addressing their current vacancies before embarking on new projects. IT-BPM companies, still the market's main driver, are eyeing cities beyond Cebu, Davao, and Pampanga as they consider expansion outside Metro Manila, while the flexible workspace sector continues to grow amid more hybrid and remote work arrangements.
Despite the uncertainties brought by the Middle East oil crisis, the real estate market continues to achieve positive developments, according to the latest report by Lobien Realty Group. "Real estate as a sector grew 6.8 percent year-on-year in the first quarter despite the headwinds—that's one of the clearest signs that demand fundamentals remain intact," said Sheila Lobien, CEO of Lobien Realty Group.
Sheila Lobien: BPOs overtake OFW remittances as biggest growth engine, drive property demand
The Philippine outsourcing industry has overtaken overseas Filipino workers' (OFW) remittances as the country's largest foreign exchange-earning sector, a shift that is now reshaping the property market and redirecting billions of pesos in investments, according to Sheila Lobien, CEO of Lobien Realty Group.
Lobien Realty Group is the No. 1 Realty Property Provider in the Philippines. We provide office and commercial spaces, lots and properties for sale/lease in the cities of Makati, Taguig, Pasig, Mandaluyong, San Juan, Pasay, Parañaque, Las Piñas, Quezon, and Caloocan.