JLL: Infra spending key to metro manila property growth
Recovery from a pullback in government infrastructure spending, triggered by a high-profile graft scandal involving flood control projects, is expected to influence Metro Manila’s real estate market growth in 2026, according to a US-listed property consultancy.
In its 2026 real estate market overview, Jones Lang LaSalle (JLL) Philippines said that it remains cautiously optimistic about the local property market, noting that while steady growth is expected across segments, external risks could determine the sector’s trajectory.
“Our outlook for 2026 reflects cautious optimism as we anticipate steady market ascent while navigating supply absorption dynamics, infrastructure project timelines, monetary policy impacts and tourism recovery,” said Janlo de los Reyes, head of research and strategic consulting at JLL Philippines.
Infrastructure development will remain a “critical catalyst” for real estate growth in 2026, JLL Philippines said.
In 2025, the Philippine economy took a hit from a slowdown in public infrastructure spending, dragging full-year gross domestic product growth down to 4.4 percent.
In the fourth quarter alone, infrastructure spending contracted by nearly 42 percent, the steepest decline since the second quarter of 2011, when outlays plunged 62 percent as the Aquino administration pursued an antigraft campaign.
Despite the slowdown, JLL Philippines said upcoming projects could still support property sector growth. These include the Cavite-Laguna Expressway, C5 South Link Expressway and the NLEx-SLEx Connector Road.
De los Reyes added that the underlying demand for real estate in Metro Manila remained strong.
Booming office occupancy
“Metro Manila’s real estate market demonstrated strong underlying fundamentals throughout 2025, with office, retail and logistics sectors delivering particularly solid performance,” he said.
Office leasing recorded strong growth in 2025, with transaction volume expanding 71.5 percent, driven largely by the continued expansion of the business process outsourcing sector, which accounted for 64 percent of total demand.
Taguig emerged as the top-performing office market, supported by sustained expansion in Bonifacio Global City. Makati followed, posting the highest annual growth rate at 92.2 percent year-on-year.
