Where to invest in real estate in the Philippines?
Real estate investment in the Philippines is a progressively evolving market. Many seasoned and newbie investors are spotting the next hot location where to invest in the Philippines. Here are the eight best locations to invest in real estate in the Philippines:
- Quezon City
- Makati City
- Davao
- Iloilo
- Cavite
- Cebu
- Metro Manila
- Baguio
1. Quezon City
Quezon City is the most populated center within Metro Manila, combining residential, commercial, and industry presence. It is known for accommodating important government offices, first-rate higher education institutions, and famous retail establishments.
What makes Quezon City one of the best locations to invest in real estate in the Philippines?
- Historical legacy: With a backdrop rich in memorable Philippine historical events like the Fort Santiago and Aguinaldo Shrine, Quezon City is the best location to invest in real estate in the Philippines.
- Center for learning: With prestigious universities like Ateneo de Manila University and the University of the Philippines within its borders, the city is the best location to invest in real estate in the Philippines for global investors prioritizing educational excellence for their families.
- Luxurious living: Quezon City boasts a high standard of living, with fine restaurants, expansive shopping centers, and many leisure activities.
- Premier healthcare: The presence of top-tier medical facilities such as St. Luke’s Medical Center marks Quezon City as a strategic spot for property investment due to easy access to outstanding healthcare services.
- Dynamic market potential: The real estate values in Quezon City span from ₱ 50,000 ($893) to ₱ 200,000 ($3,570) per square meter and are shaped by various factors, including location and property category.
- Attractive rental gains: Two-bedroom apartments near schools or business districts can yield monthly rents between ₱ 20,000 ($357) and ₱ 35,000 ($625).
- Investment growth: Notable for a yearly land appreciation rate in the Philippines of 5-6%, Quezon City presents excellent potential for sustaining a robust return on investment.
2. Makati City
As the main financial sector of the Philippines, Makati City established itself as one of the most prestigious cities in Southeast Asia. Its importance is emphasized nationally and throughout the region by its longtime reputation as the hub of choice for numerous notable local and multinational firms.
Key reasons why Makati City appeals as the best location to invest in real estate in the Philippines:
- Robust economy: Makati supports a strong economy with over 60,000 businesses and comprehensive urban amenities, making it the best location in the Philippines to invest in real estate.
- Connectivity and infrastructure: Makati is known for its excellent connectivity. It boasts an expansive transportation network that includes buses, trains, and eco-friendly e-jeepneys, ensuring effortless navigability.
- International hub: Makati, home to 54 foreign embassies and 34 consulates, emerges as a vital international center, nurturing a broad spectrum of global relations and entrepreneurial possibilities.
- Global presence: Makati has many Business Process Outsourcing centers and leading IT corporations, which makes it the best location to invest in real estate in the Philippines, attributed to its soaring land values and advantageous lease prices.
- Real estate market: The premium segment of Makati’s real estate market sees luxury condominiums priced between ₱ 160,000 ($2,856) and ₱ 300,000 ($5,355) per square meter, indicating the city’s prestigious living conditions.
- Rental yields: Monthly rents at top-tier condominiums in Makati range from ₱ 50,000 ($893) to ₱ 150,000 ($2,678), influenced by factors like size, location, and level of luxury.
- Competitive returns on investment: The land appreciation rate in the Philippines boasts attractive returns, averaging 4% to 6% annually.
3. Davao
Davao City, the largest city by land area, is becoming a focal point for foreigners who want to buy property in the Philippines. The city offers a compelling mix of modern development alongside natural wonders, positioning it as a prime location for investments and residential purposes. Beyond its agricultural richness and breathtaking shorelines, the “Durian Capital of the Philippines” promises various opportunities.
Why Davao is the best location to invest in real estate in the Philippines:
- Thriving property sector: Data from the Davao City Investment Promotion Center (DCIPC) highlight that the city accounts for 70% of the region’s gross regional product (GRP), making it the best location to invest in real estate in the Philippines.
- Commitment to public order: Davao City is considered the safest in the Philippines. Laws that impose prohibitions, such as prohibiting smoking in some areas or limiting the hours alcohol can be sold, to promote social order.
- A broad spectrum of opportunities: As the hub of trade and commerce, there is significant progress in IT, transit systems, and healthcare sectors, making it the best location to invest in real estate in the Philippines.
- Lush landscapes and lifestyle perks: Davao’s enticing natural scenery, historical landmarks, and adventure destinations, along with some of the most beautiful beaches, make it a destination for an ideal lifestyle for both locals and tourists.
- Accessible property investments: Residential houses in Davao start at ₱ 1.8 million ($32,130), and two-bedroom condos in downtown areas are priced at ₱ 4 million ($71,400).
- Rental revenue potential: A standard two-bedroom condominium rents for ₱ 25,000 ($446) to ₱ 50,000 ($893) per month. Houses’ rental averages are higher, ranging from ₱ 40,000 ($714) to ₱ 80,000 ($1,428) monthly.
- Return on Investment (ROI): The city offers a strong ROI due to its growing property values, rental market, and continuous growth. Annually, investors might see returns ranging between 6% and 12%, including rental income and appreciation.
4. Iloilo
Iloilo City combines cultural traditions with contemporary growth, positioning itself as a magnet for global investors. This fusion of historical richness and modern style makes Iloilo an ideal spot for foreigners to buy property in the Philippines.
Why is Iloilo a prime choice for investment houses in the Philippines?
- Booming real estate sector: Iloilo is the best location to invest in the Philippines due to its towering residential complexes built to suit the city’s expanding urban population, and major corporate hubs are attracting multinational corporations.
- Inviting business environment: Agriculture, tourism, manufacturing, and the rapidly expanding BPO sector are the varied industries that support the city’s economy.
- Strategic benefits for global investors: Iloilo attracts attention from the global business community because of its advantageous location, extensive infrastructure, and highly trained labor force, making it the best location to invest in real estate in the Philippines.
- Competitive property prices: Property buyers can find land and real estate starting at ₱ 10,000 ($179) per square meter within the city and at lower rates on the outskirts, providing attractive options for maximizing investment returns.
- Profitable rental yields: Residential properties in Iloilo can yield a land appreciation rate of about 6% to 8% per year in the Philippines. In contrast, commercial properties often see even higher rates due to growing business demand, making Iloilo the best location to invest in real estate in the Philippines.
- Promising investment returns: The real estate market in Iloilo has consistently appreciated, with certain areas experiencing an annual increase in property value of 10% to 15%, signifying promising investment prospects.
5. Cavite
Cavite, located at the southern edge of Manila Bay, has quickly emerged as a hub for foreign investors eyeing profitable real estate opportunities. It skillfully combines rural beauty with urban advancement with its unique blend of historical value, prime position, and active development.
Why Cavite is the best location to invest in real estate in the Philippines:
- Seamless connectivity: Cavite’s close proximity and easy connectivity to Metro Manila are among its benefits. Access has significantly improved despite being outside the National Capital Region (NCR) because of major upgrades in road infrastructure.
- Robust economy: Cavite has manufacturing activities due to its numerous economic zones and industrial parks, making it the best location to invest in real estate in the Philippines.
- Wide-ranging opportunities: Cavite’s urban setting, enhanced by multinational corporations and booming business sectors, ensures many job prospects.
- Growing tourism: Featuring landmarks like the storied Taal Volcano, Sky Ranch, Puzzle Mansion, and Aguinaldo Shrine, Cavite’s rich blend of natural and historic attractions draws in tourists, making it the best location to invest in real estate in the Philippines.
- Property prices: The purchase price for land or properties in Cavite varies, typically between ₱ 10,000 ($179) to ₱ 30,000 ($536) per square meter.
- Competitive rental returns: Rental income prospects in Cavite are robust, with properties in strategic locations earning monthly rentals of ₱ 15,000 ($268) to ₱ 50,000 ($893), depending on the property’s specifics.
- Promising Returns on Investment (ROI): Property values are appreciated annually at 5% to 15%, influenced by the property’s location and developmental stage.
6. Cebu
Cebu is more than just a vibrant island province in the Philippines known for its white beaches and rich heritage. It’s also an emerging economic center offering rewarding possibilities for property investors. In the middle of the archipelago, Cebu has made notable trade, tourism, and infrastructure advancements, making it the best location to invest in real estate in the Philippines.
Why foreign investors should consider investing in Cebu:
- Remarkable infrastructure progress: Major initiatives such as the Cebu-Cordova Link Expressway and the Mactan-Cebu International Airport, along with various ongoing projects like the Cebu Bus Rapid Transit, forecast a bright future for the region.
- Emerging reputation as a business hub: With the surge of BPOs, tech startup entities, and others, real estate values in Cebu are predicted to increase significantly in upcoming years, making it the best location to invest in real estate in the Philippines.
- Appealing tourist location: Cebu’s alluring beaches and historical monuments make this island an optimal investment area for tourism.
- Real estate pricing: Cebu presents diverse opportunities, from luxury beachfront landscapes to towering condominiums and business-oriented structures in the city center. Foreign investors can acquire a condominium unit for considerably low prices, beginning at ₱ 2 million ($35,700).
- Stable rental income: For residential properties, rental returns can fluctuate between 4% and 6% yearly, making it the best location to invest in real estate in the Philippines.
- ROI potential: The annual appreciation rate for properties can differ, but it commonly ranges between 5% and 10%. This rise is facilitated by ongoing development, surging demand, and the city’s economic health.
7. Metro Manila
Metro Manila is the capital of the Philippines, known for its diverse culture, booming commerce, and steady growth. Its lively streets, high-rise buildings, and seamless blend of historical and contemporary aspects make it a tourist magnet and a popular area for foreign investment.
Why is Metro Manila the best location to invest in real estate in the Philippines?
- Stability in the economy with diverse possibilities: As a hub of prestigious universities, shopping centers, and business districts, Manila is the best location to invest in real estate in the Philippines, which nurtures business and leisure activities.
- Quality education and contemporary living: The city’s recognition as an educational center boosts its attractiveness. This status fuels a steady demand for residential spaces, particularly from the student demographic.
- Rich culture: Residents and visitors alike can immerse themselves in the local culture, which makes it the best location to invest in real estate in the Philippines.
- Prosperous real estate investment: Investment in properties like Torre De Manila transcends mere acquisition; it benefits students, young professionals, and families desiring convenience, style, and accessibility.
- Land and property costs: Prime residential areas are priced between $2,000 and $3,000 per square meter, positioning it as an investment hub.
- Elevated rental income: Given the city’s role as a center for business and academe, there’s a constant demand for suitable, cozy accommodations, leading to rental yields of about 6% to 7% annually.
- Attractive ROI: The city’s ongoing advancements significantly boost property values, making long-term real estate investments highly lucrative, ranging from 8% to 12%.
8. Baguio
Baguio is a leading tourist hotspot located in the Cordillera Central mountains and a lucrative area for investment houses in the Philippines. Renowned as the “Summer Capital of the Philippines” due to its cool climate, Baguio captivates foreign investors with its rich cultural heritage and dynamic community, offering a refreshing retreat from the hot Philippine summer.
Key reasons why investing in Baguio appeals to foreigners:
- Education and safety: Baguio is the “Education Center of the North.” Its exceptional schools and safety make it the best location to invest in real estate in the Philippines for student accommodation investments.
- Appealing climate: Baguio has cold weather that lures people desiring relief from tropical temperatures.
- Societal warmth: The city’s friendly community further enhances its charm, making it the best location for foreigners seeking to invest in real estate in the Philippines in an environment rich in culture and local hospitality.
- Property prices: The costs can fluctuate significantly depending on location, property size, and type. Prices fall from ₱ 10,000 ($179) to ₱ 35,000 ($625) per square meter.
- Rental income: Typically, the monthly rent for a one-bedroom apartment in the city center falls between₱ 15,000 ($268) to ₱ 25,000 ($446).
- ROI expectations: Investors can anticipate an annual ROI ranging from 5% to 8% post expenses, making it the best location to invest in real estate in the Philippines
How to invest in real estate in the Philippines?
Investing in real estate in the Philippines can be a lucrative opportunity for both local and foreign investors. However, it’s important to note that foreign land ownership is restricted; foreigners can own condominium units or buildings but not the land on which they stand. Whether you’re interested in residential properties, commercial spaces, or land development, the Philippines offers many investment opportunities. Here are six ways on how to invest in real estate in the Philippines.
- Buy and sell: Purchase low-cost properties, improve them, and sell at a profit for potential substantial returns.
- Buy and hold: Acquire properties to rent out and generate income while waiting for their value to be appreciated.
- Rental properties: Lease residential or commercial spaces to tenants for a steady income.
- Real Estate Investment Trusts (REITs): Invest in real estate indirectly through pooled capital that earns dividends from property income without direct management.
- Shared ownership: Purchase a percentage of a property and pay rent on the remaining portion, which requires trustworthy partnerships.
- Co-op investments: Buy shares in a corporation owning a building, providing rights to a unit, steady cash flow, and tax benefits.
Buy property in the Philippines with Own Property Abroad
Are you looking to buy property in the Philippines? We are here to guide you through a smooth and effortless journey to find your property in one of the best locations to invest in real estate in the Philippines. With our deep knowledge and local expertise in the Philippine real estate market, we can assist with legal requirements, find suitable properties, negotiate the best deals, and ensure thorough due diligence.
With the support of our expert team, you won’t have to face the complexities of the Philippine market alone. For more information on how we can assist you, please provide your details below or email us at [email protected].
Frequently Asked Questions (FAQs)
Why invest in real estate in the Philippines?
Investment in real estate in the Philippines is beneficial due to its relatively low-risk yet resilient market, which maintains demand even during unfavorable economic conditions.
How to invest in real estate with little money in the Philippines?
Investing in real estate with little money in the Philippines can be achieved through Real Estate Investment Trusts (REITs), which allow ownership of properties via buying and selling shares.
Where to invest in the Philippines?
The best locations to invest in real estate in the Philippines include Quezon City, Makati City, Davao, Iloilo, Cavite, Cebu, Metro Manila, and Baguio.
Is the Philippines a good place to invest in real estate?
Yes, the Philippines is a good place to invest in real estate due to its strong economic growth, young population demographics, customer purchasing power, and fostering value appreciation.
