Real estate seen as investment haven amid geopolitical risks

The Philippine real estate sector has remained resilient through the first half of 2025, defying broader global economic uncertainty and positioning itself as a stable option for long-term investment, according to property consultancy firm Santos Knight Frank.

In its latest market outlook, the firm reported that the country’s office segment continues to recover robustly, buoyed by rising demand from business process outsourcing (BPO) firms that are expanding operations across Metro Manila.

“We continue to see steady demand in the office market from BPO and traditional occupiers,” said Rick Santos, Chairman and CEO of Santos Knight Frank. “The current geopolitical climate is marked by rapid and unpredictable changes, creating uncertainty for investors, businesses, and consumers alike. Despite this, the Philippine real estate sector continues to demonstrate remarkable resilience.”

The report noted that alongside the office sector, the industrial market is also gaining traction, driven by continued growth in manufacturing, logistics, and warehousing. Meanwhile, the hospitality sector is rebounding, with new hotels being developed across major tourist destinations including Cebu, Clark, and Palawan.

In the residential space, Metro Manila continues to attract local and foreign buyers, with demand shifting toward units that combine quality with affordability—solidifying the capital's reputation as an “affordable luxury” market.

Santos added that this broad-based performance is underpinned by stable domestic demand, favorable demographics, and supportive government policies, including infrastructure development that improves access to regional markets.

“As economic tides shift, real estate reaffirms its place as the gold standard of investment—offering long-term value, enduring stability, and tangible growth opportunities,” Santos said.

With continued foreign interest and a resilient domestic market, the Philippine real estate sector is projected to maintain its momentum heading into the second half of the year, even as the global outlook remains uncertain.