Tourism growth spurs Real Estate Expansion across Leisure Hubs

The Philippine tourism sector is on pace to shatter records this year, with surging domestic and international travel revitalizing real estate demand—not only in Metro Manila but across regional leisure destinations from Luzon to Mindanao.

According to the World Travel & Tourism Council (WTTC), the Philippine travel and tourism industry is forecast to contribute P5.9 trillion to the economy in 2025, marking a 13.5 percent increase over pre-pandemic levels and comprising 22.5 percent of GDP. A massive P4.1 trillion of that is driven by domestic tourism, highlighting the shift in Filipino travel habits toward weekend escapes, road trips, and local discovery.

The Department of Tourism reported 2.9 million international arrivals in the first half of the year, while January 2025 alone recorded P65.3 billion in foreign tourism receipts—151 percent higher than 2019’s pre-pandemic levels in peso terms.

In Metro Manila, Bay City continues to attract investors in condotels and branded serviced apartments driven by its proximity to casinos, convention centers, and the Manila Bay leisure district. Quezon City’s rising hotel demand, especially near UP Town Center, Vertis North and the future MRT-7, is also drawing developer attention. In the regions, destinations like Calatagan, Siargao, Tagaytay, and San Juan, La Union are experiencing brisk land sales and high occupancy in leisure-oriented residential communities.

But beyond Luzon, Central Visayas and Mindanao are emerging stars.

Cebu, a long-time tourism powerhouse, is now seeing real estate growth expand beyond Mactan to the northern towns of Liloan and Danao. Bohol, supported by Panglao’s international airport and dive tourism, is experiencing a quiet residential boom, with eco-villas and co-living resorts taking root.

Palawan, with new airport and road upgrades, is seeing renewed investor interest in Coron and El Nido beachfront developments. Meanwhile, Davao, which welcomed 2.4 million domestic tourists in 2024, is positioning itself as a meetings and lifestyle tourism hub in the south—boosting demand for serviced residences and tourism-related infrastructure.

“With the new travel habits of Filipinos, we’re seeing leisure properties being treated as both a lifestyle choice and an investment vehicle,” said Alejandro Mañalac, Chairman of Havitas Developments. “It’s not just about vacations anymore—it’s about smart second homes that earn passive income.”

Developers are responding with mixed-use resorts, wellness estates, and branded residences that allow both personal use and rental income. Projects strategically positioned near airports, heritage towns, and adventure zones are commanding premium interest.

With 11.7 million tourism-related jobs forecasted in 2025, the tourism-real estate synergy continues to shape the next wave of sustainable regional growth and investment opportunity.