What are the best locations to buy a property in the Philippines?
When buying a house in the Philippines, it is equally important to align the location with your specific intentions for the purchase. You must consider your lifestyle, available amenities near the area, and whether you intend to reside for a long time, use it as a holiday home, or for property rental.
What factors to consider when choosing a home
The real estate location is only one of the things you should look into when picking a home. Here are the other factors that should guide what home you purchase.
Accessibility
Accessibility refers to the home’s proximity to daily necessities such as schools, hospitals, places of worship, and even leisure. Having all of these near your home makes life more convenient and, in a way, safer, especially in cases of emergencies.
Affordability
When it comes to affordability, the most important factor is how much of your income will go towards buying and maintaining the space. You might find yourself with different expenses when you move to a new place, so you need to budget these costs accordingly. These include groceries, gasoline prices, and electricity rates which vary by city or province.
Safety
When it comes to safety, you should always make sure your investment is worth the extra cost. For example, if a neighborhood has a low crime rate and a good reputation for police presence, then this may be a good area for a home. There are plenty of residential areas in the Philippines (like subdivisions and condominiums) that offer additional security services. Although they're more expensive than most regular neighborhoods, the safety outweighs any financial burden imposed by having such services installed within one’s home.
Current Finances
When purchasing a house, it is important to take the time to evaluate your current financial situation before making any long-term commitments. Make sure your income is enough to meet your expenses on top of the amortizations. You also need to think about utility bills, maintenance costs, and taxes related to real estate.
It may take a while to find your ideal home, but it’s worth the effort to do your research before making a decision. A home, after all, is one of the biggest investments you will ever make in your life. If you find you need a little financial help to secure your dream home, we can help you.
Real estate investment in the Philippines has always been a popular strategy for achieving financial independence. This is ideal for foreigners who want to expand their investment options. Recently, the Philippines has become a top choice for investors worldwide due to its strong economy and rapidly growing real estate sector. In this article, we will discuss the eight best locations to invest in real estate in the Philippines.
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
Palawan
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 to ₱ 200,000 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 and ₱ 35,000.
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 and ₱ 300,000 per square meter, indicating the city’s prestigious living conditions.
Rental yields: Monthly rents at top-tier condominiums in Makati range from ₱ 50,000 to ₱ 150,000, 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, and two-bedroom condos in downtown areas are priced at ₱ 4 million.
Rental revenue potential: A standard two-bedroom condominium rents for ₱ 25,000 to ₱ 50,000 per month. Houses’ rental averages are higher, ranging from ₱ 40,000 to ₱ 80,000 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 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 to ₱ 30,000 per square meter.
Competitive rental returns: Rental income prospects in Cavite are robust, with properties in strategic locations earning monthly rentals of ₱ 15,000 to ₱ 50,000, 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.
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 ₱ 117,000 and ₱ 176,000 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 to ₱ 35,000 per square meter.
Rental income: Typically, the monthly rent for a one-bedroom apartment in the city center falls between₱ 15,000 to ₱ 25,000.
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.
9. Palawan
Palawan is like something out of a dream for those who crave a peaceful life surrounded by the stunning natural beauty of the beaches, towering cliffs, and clear blue waters. Palawan is home to some of the most beautiful natural scenery in the world. It’s the best place to live in the Philippines for foreigners looking for a quiet island lifestyle.
From the crystal-clear waters of El Nido to the stunning limestone cliffs of Coron Island, Palawan is a nature lover’s dream come true. The city is also home to several world-class beaches and dive sites, making it an ideal destination for those who love to explore the great outdoors.
Key reasons why investing in Palawan appeals to foreigners:
Vibrant Culture
The city is known for its vibrant local culture and welcoming community. Whether you’re interested in learning more about traditional Filipino cuisine or want to get involved in local festivals and celebrations, you’ll find plenty of opportunities to do so and make new friends.
Economical Cost of Living
Compared to other popular expat destinations, Palawan offers a lower cost of living without sacrificing the quality of life. Housing, food, and entertainment are all reasonably priced, meaning you can enjoy a high standard of living without breaking the bank.
Home for Expats
The island’s locals, Palaweños, are hospitable, making it easy to slip into the community and make lasting friendships. Also, Palawan is home to a thriving expat community, so you’ll have plenty of support as you settle into your new home. From expat groups and organizations to local meetups and events, you’ll find plenty of opportunities to connect with other expats and make new friends.
Gorgeous surroundings
With some of the world’s most beautiful beaches and rock formations, Palawan is a must-see for anyone who loves to be wowed by the outdoors.
Easy to get to
The island is easy to get to, thanks to its many ports and airports, making travel and settling in much simpler for those from other countries.
Various food choices
Whether you’re into the local seafood hits or want international flavours, Palawan’s eateries have something to satisfy every craving.