MANILA, Philippines — The recovery of government infrastructure spending will be the primary driver for Metro Manila’s real estate market in 2026, according to the latest market overview by Jones Lang LaSalle (JLL) Philippines.
The report, released on March 7, 2026, highlights that the property sector is coming off a challenging year. In 2025, a high-profile graft scandal involving flood control projects led to a significant pullback in public spending.
- GDP Impact: The slowdown dragged full-year 2025 GDP growth down to 4.4%.
- Infrastructure Contraction: In Q4 2025 alone, infrastructure spending plummeted by nearly 42%, the sharpest decline since 2011.
JLL Research Head Janlo de los Reyes expressed optimism that 2026 will see a “steady market ascent” as the government resumes work on stalled projects.
- Key Projects: Essential to this growth are the completion and operation of the Cavite-Laguna Expressway (CALAX), C5 South Link, and the NLEX-SLEX Connector Road.
- Office Market Strength: Despite the macro-economic hurdles, office occupancy remains booming. Office leasing transaction volume grew by 71.5% in 2025, largely driven by the BPO sector (64% of total demand).
- Top Performers: Taguig (BGC) remains the top office market, while Makati saw the highest annual growth rate at 92.2%.
Beyond infrastructure, JLL notes that tourism recovery and the absorption of new supply in the logistics and retail sectors will be vital to maintaining the market’s upward trajectory throughout the year.
