Real estate loans up 8.8% in June, BSP data show

The real estate exposure of Philippine banks and their trust units rose slightly to 19.61 percent of the industry’s total loan portfolio as of end-June, reflecting renewed activity in both residential and commercial lending, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The figure, which was up from 19.41 percent in the first quarter, remains lower than the 19.92 percent recorded in the same period last year.

During the second quarter, real estate loans (RELs) expanded by 8.8 percent to %u20B13.03 trillion from %u20B12.79 trillion a year earlier. Residential RELs grew 11.5 percent to %u20B11.16 trillion, while commercial RELs rose 7.3 percent to %u20B11.87 trillion.

Although real estate investments (REIs) posted a 2.6 percent decline to %u20B1361.4 billion, debt securities slipped only marginally by 1.7 percent, and equity securities contracted by 4.5 percent year-on-year.

Industry analysts see the steady growth in RELs as a sign of market resilience. Colliers Philippines, in its August property market report, noted that Metro Manila’s office sector sustained its growth momentum in the first half of 2025, supported by expansions and new setups from outsourcing firms and traditional corporate tenants.

Colliers highlighted that fewer vacated office spaces were recorded, with tenants opting to stay longer in their current locations, signaling stronger retention and improved market sentiment.

“To capture evolving demand, landlords are encouraged to offer flexible space options, refurbish older buildings to remain competitive, and explore repurposing of assets,” the firm said, adding that developers should also look at emerging provincial hubs where interest is growing despite limited supply.

The BSP earlier raised the ceiling on banks’ real estate loan exposure from 20 percent to 25 percent of total loan portfolios, a move intended to spur residential lending and support construction activity.

Market watchers say the policy shift, coupled with sustained demand for office and housing, could continue to drive lending activity in the months ahead.