July 31, 2026
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.
In the first quarter of 2026, nationwide residential prices rose 4.5 percent year-on-year and 5.6 percent quarter-on-quarter, showing the residential property market's price resiliency, though it remains highly sensitive to the overall economy, mortgage rates, and inflation. The Greater Metro Area (GMA) — covering CALABARZON, Central Luzon, and nearby provinces — has become the main driver of demand, with its loan grant share maintained at 40 percent compared to NCR's 29 percent. Prices in GMA run 57 percent lower for houses and 32 percent lower for condos versus NCR, driving outward migration toward horizontal properties in nearby provinces.
In NCR, developers are recalibrating to address unsold condo inventory, even as prices rose 3.7 percent year-on-year and 13.2 percent quarter-on-quarter, signaling continued price resilience and steady demand. There is also a risk tied to the Iran conflict potentially affecting the 15 percent of OFW remittances coming from the Middle East, which could impact the condominium market's recovery.
In Metro Manila's office market, the IT-BPM sector remains the primary driver, with its share of leased space rising from 43 percent in 2025 to 52 percent in the first quarter of 2026. Office vacancy stayed at 19 percent in the first half of 2026, with average rents marginally increasing to P1,000 per square meter, while new supply remains disciplined at only about 700,000 square meters expected between 2026 and 2029 as developers prioritize stabilizing current vacancy before launching new products.
While premier regional hubs like Cebu, Davao, and Pampanga remain highly sought-after, demand for BPO and IT-BPM activity is shifting toward the Department of Information and Communications Technology's (DICT) designated digital cities, which now number 25 nationwide as of 2026, offering competitive setups, tax incentives, and capable provincial talent pools. With the P9.6 trillion national infrastructure plan and major projects like the Luzon Spine Expressway Network easing transport between regions, decentralizing outside Metro Manila has become a permanent BPO strategy driven by lower provincial rents and living costs that boost profit margins.
On the industrial side, warehouse and logistics investments continue expanding beyond Metro Manila, fueled by infrastructure projects, e-commerce growth, and supply chain modernization. Philippine e-commerce users are projected to reach 17 million this year, up from three million last year, pushing businesses to invest in smarter, more efficient warehouses. Cavite, Laguna, and Batangas remain the most active corridors for occupier demand, while Clark and Central Luzon are emerging as the country's fastest-growing logistics hubs, aided by lower land costs, international airport access, and expressway connectivity. Ultimately, the report stressed that location defines long-term value — sites with expressway access, industrial zoning, and proximity to ports or airports command the strongest demand in the warehouse market.
Read the full article here:
https://mb.com.ph/2026/07/15/lobien-report-real-estate-market-keeps-its-footing-in-h1-2026
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.
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.
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.