Manila is second-fastest growing luxury home market in 2024

Luxury residential prices in Metro Manila jumped 17.9 percent in 2024, the second-fastest growth among 100 cities tracked by Knight Frank, the property consultant said in a report.

According to Knight Frank's latest Wealth Report, Manila's price increase was second only to Seoul's 18.4 percent, followed by Dubai's 16.9 percent.

Christine Li, head of Asia-Pacific research at Knight Frank, noted that Manila's prime residential prices topped the firm's Prime Global Cities Index in 2023.

"Luxury residential properties in and around Manila Bay have enjoyed a surge in popularity, resulting in significant appreciation in valuations driven by high pre-selling prices," Li said.

"Local wealth creation has spurred the rapid expansion of investable luxury residential developments, particularly in the city’s core business districts, enticing foreign investors from within Asia-Pacific," she said.

Li said there was particularly strong interest in leisure-oriented residential properties in Manila from buyers in the wider Asia-Pacific region seeking luxury at an attractive price point.

She noted that a $14-million investment could buy a 10,000-square-foot penthouse overlooking Manila Bay with hospitality services.

In terms of five-year growth, Manila ranked third with an 87 percent increase, behind Dubai's 147 percent and Palm Beach's 117 percent.

Knight Frank said Manila saw consistently strong growth over a five-year period, driven by an expanding economy and reinvestment from expatriate Filipinos.

Manila's 2024 price growth significantly outpaced the global average of 3.6 percent. About 77 of the 100 markets tracked by Knight Frank saw price growth in 2024.

"The top six spots in our ranking are taken by Asian and Middle Eastern markets, with Seoul (18.4%), Manila (17.9%) and Dubai (16.9%) leading the list. Saudi Arabian markets performed strongly this year, with Riyadh and Jeddah both making the top six," Knight Frank said.

The property consultant expects luxury residential prices to continue to grow in 2025.