Ayala Land Bets Big on Affluent Market as Trade Tensions Cloud Outlook

Ayala Land Inc. is doubling down on its premium residential developments, eyeing the Philippines’ growing affluent class to fuel growth amid global economic uncertainties tied to U.S. President Donald Trump’s tariff policies.

At a press briefing in Makati City, Ayala Land President and CEO Anna Ma. Margarita Bautista-Dy acknowledged the unpredictable nature of the global trade environment, noting, “Trump’s tariffs are causing a little bit of turmoil.”

To navigate this uncertainty, Ayala Land is focusing its strategy on high-end buyers, particularly locals, who make up 72% of its client base, according to Ayala Land Premier head Mike Jugo. Of the remaining 28%, 15% are overseas Filipinos, while 13% are foreign buyers, mostly Americans.

Jugo explained that the middle-income market continues to face headwinds, including high interest rates and localized oversupply, prompting the developer to prioritize the premium segment and horizontal (landed) developments.

Dy noted that the Philippines is seeing a surge in private wealth, with assets under management growing over 20%. This has translated into a sevenfold increase in sales at the luxury Greenbelt Mall since 2019. “There is indeed wealth being created in the country… Many of our buyers are business owners,” she said.

Beyond residential real estate, Ayala Land is also turning its attention to commercial and industrial lots, a segment that has traditionally made up about 10% of their sales.

“We’re going to be more aggressive here,” Dy said, adding that many buyers seek commercial properties to diversify their portfolios.

In 2024, Ayala Land posted a net income of P28.2 billion, a 15% increase from the previous year. For 2025, the company aims to grow at double the national GDP rate, targeting a 12% annual growth.

To support its expansion, Ayala Land plans to raise P55 billion through sustainability bonds and credit lines, which will also be used to refinance maturing debts.