Manila expects robust residential supply pipeline until 2028

Analysts expect occupancy challenges to arise.

According to a JLL report, demand in Manila’s residential market is projected to remain stable across both leasing and sales segments, supported by executive and expatriate requirements, though the substantial supply pipeline from 2025 to 2028 may introduce occupancy challenges.

“Rents are seen to see moderate appreciation from sustained demand by affluent domestic and international professionals. Prices are likely to continue rising as new premium developments enter the market, potentially elevating valuations across Manila’s prime districts,” the report added.

Here’s more from JLL:

The Premium residential segment sees uptick in both rents and sales

A positive net absorption of 160 units across the residential sector was seen in Q2 2025. Makati and Taguig posted steady lease momentum from expatriates, executives and hybrid-working professionals, reinforcing their status as premier living destinations.

Likewise, the sales market demonstrated resilience with high-net-worth individuals (HNIs) and international investors maintaining transaction activity.

Development delays reduce near-term supply pressure as vacancy trends downward

The quarter saw no new completions as scheduled developments shifted delivery timelines to Q4 2025, with additional pipeline projects now concentrated between 2026 and 2027.

Vacancy contracted to 6.7% in Q2 2025, down 22.1 bps q-o-q. The improvement stems from consistent occupier activity in Makati and Taguig, where corporate executives and professionals with flexible work arrangements continue absorbing available inventory.

Investment metrics reveal stable price growth amid stable rental environment

Rents held steady at PHP 844.8 per sqm, per month, due to consistent interest from expatriates, local executives and professionals. This stability reflects sustained demand from international assignees and corporate leaders requiring quality accommodations.

Capital values appreciated by 1.6% in Q2 2025 to PHP 304,261 per sqm, reflecting strengthening sales performance and investor confidence in premium residential assets.