Factors Behind the Surge in Philippine Commercial Real Estate

Factors Driving the Rise of Commercial Real Estate in the Philippines


The commercial real estate market in the Philippines has grown a lot recently. This happened because of a few important reasons. As the country’s economy gets bigger and more foreign companies invest in the Philippines, there is a bigger need for good office spaces, places to shop, and industrial properties. In this article, we will talk about the reasons why commercial real estate is growing in the Philippines.

Economic Growth and Stability

One of the main reasons why commercial real estate is growing in the Philippines is because the country’s economy keeps getting bigger and more stable. Over the past ten years, the Philippines’ economy has been growing steadily because of things like information technology, tourism, and money sent by Filipinos working abroad.

When the economy grows, there are more businesses opening, so there is a higher need for commercial spaces. Companies from the Philippines and from other countries want to set up their businesses in the Philippines, so they need office spaces and places to sell things. That is why there is a lot more commercial real estate now.

Foreign Investments

Foreign investments are a big reason why there is more commercial real estate in the Philippines. Foreign companies and investors like the Philippines because it is in a good location and it is easy to do business there. The Philippines also has a young and skilled workforce.

The Philippines’ government has made it easier for foreign companies and investors to put money into the country. They did this by giving them tax breaks, making it easier to start a business, and allowing them to own more of a business in certain industries. Because of this, many big companies and investors from different parts of the world are interested in the commercial real estate market in the Philippines.

Infrastructure Development

Infrastructure development projects are also helping the commercial real estate market grow in the Philippines. The government is spending a lot of money on these projects to help the economy grow. They are building new roads, airports, and train systems.

When there are better roads and transportation systems, more businesses can open in new areas. Because of this, there are new places where businesses can grow outside of the big cities. This means there is more demand for commercial real estate in these new areas.

Urbanization and Demographic Trends

Urbanization and changes in the population are also reasons why there is more commercial real estate in the Philippines. More people are moving to the big cities because they want better jobs and lives. This means there are more people who want places to work and places to shop.

The middle class is growing in the Philippines, and people’s shopping habits are changing. More malls and places where people can live, work, and shop are being built to meet these needs. Developers and investors are taking advantage of these trends by building more commercial real estate to serve the growing population.

Favorable Business Environment and Regulations

The Philippine government is working hard to make it easier for businesses to succeed and to make sure they are following the rules. The government wants both local and foreign investors to come and invest in the Philippines. The World Bank has recognized the Philippines for making it easier to do business there.

The government has also made it easier for people to invest in real estate by passing the Real Estate Investment Trust (REIT) Act. This means people can invest in real estate without having to buy and take care of the property themselves. This has made the real estate market better for everyone.

Frequently Asked Questions (FAQs)

Q: What are the most popular types of commercial properties in the Philippines?

A: The most popular types of commercial properties in the Philippines are office spaces, places to shop, and places for industries. The IT-BPM industry is growing, more people are shopping, and there is a need for logistics and factories.

Q: Which places in the Philippines are seeing the most new commercial real estate being built?

A: Manila is the main place where new commercial real estate is being built, but other places like Cebu, Clark, Davao, and Iloilo are also seeing a lot of growth. The government’s infrastructure projects are helping these places grow.

Q: How does commercial real estate help the Philippine economy?

A: Commercial real estate helps the Philippine economy by bringing in foreign investments, creating jobs, and making the economy bigger. The government also gets money from commercial real estate through taxes and fees. Commercial real estate also helps other industries like construction, retail, and professional services.

Q: What are the risks of investing in commercial real estate in the Philippines?

A: Like any investment, there are risks to investing in commercial real estate in the Philippines. The risks include changes in the economy, changes in the rules, too many businesses in one place, and uncertainties in the world. To make investing safer, it is important to do a lot of research, work with trusted developers, and ask for advice from professionals.


1. Department of Trade and Industry, Philippines – https://www.dti.gov.ph/
2. Philippine Economic Zone Authority – https://www.peza.gov.ph/
3. World Bank, Doing Business 2020: Philippines – http://www.doingbusiness.org/en/rankings
4. Securities and Exchange Commission, Philippines – https://www.sec.gov.ph/
5. Philippine Investment Statistics Php.2 – https://www.tesda.gov.ph/uploads/files/PIS%202021.pdf