Philippine Real Estate Grew 6.8% in Q1 as BPO Leasing Hit 52% Share

The Philippine real estate sector grew 6.8% year-on-year in the first quarter of 2026, Lobien Realty Group reported at its mid-year briefing on July 9. The growth placed the sector third among the country's fastest-growing industries, behind public administration and defense at 12.7% and education at 10.1%. CEO Sheila Lobien pointed to strong housing demand, residential development, and property rental growth as the drivers.

"Real estate as a sector grew 6.8% year-on-year in the first quarter despite the headwinds – that's one of the clearest signs that demand fundamentals remain intact," Lobien said.

Business process outsourcing firms accounted for 52% of total office space leased in Metro Manila during the first quarter, up from 45% in the two preceding quarters. Lobien said BPOs are projected to hire 70,000 new employees in 2026, requiring at least 300,000 square meters of space. Traditional offices made up 34% of leasing, government agencies 10%, and other sectors 4%.

"The BPO industry at 52% – they're really the ones getting the available spaces out there," Lobien said. She noted that hybrid work arrangements have kept the sector from growing at pre-pandemic rates, demand remains steady.

Residential prices held up. The country's residential price index rose 4.5% year-on-year and 5.6% quarter-on-quarter. Metro Manila condominium prices jumped 13.2% from the previous quarter and 3.7% from a year earlier. A shift is underway: the balance Greater Manila Area – covering CALABARZON, Central Luzon, and nearby provinces – overtook the National Capital Region in residential loans granted, 40% to 29%. Lobien pointed to infrastructure projects, post-pandemic demand for larger homes, and lower property prices as drivers.