Manila: Infrastructure projects that will efficiently allow commuters to travel more easily around the country are among the factors seen as drivers of the real property sector this 2026.

According to Philippines News Agency, in a briefing on Wednesday, Dino Palanca, Director of Research and Marketing of real estate services company KMC Savills, noted that the existing stock in the residential segment has decreased as property developers have shifted their focus to other segments following an oversupply in the past.

He highlighted that residential property developments are on the rise in areas such as Cavite, Laguna, Batangas, and Rizal, as well as in Pampanga, despite its relative distance from Metro Manila. "The drivers are evident. We're grateful that the government also has stepped in to play in building infrastructure projects and interconnecting businesses altogether," Palanca stated. He emphasized that these projects not only facilitate ease of travel and business but also connect regions to new opportunities.

In the office market, John Corpus, Executive Director for Tenant Representation, identified the healthcare, financial technology, information technology, game development, and robotics segments of the IT-BPM sector as key drivers of office space demand. Meanwhile, Alex Samuel, Director for Consultancy and Valuation, noted that retail businesses are reverting to large format operations, such as big supermarkets, as smaller formats like food carts and smaller store branches did not expand as expected.

Warehousing, logistics hubs, and distribution centers are also contributing to the growth of retail spaces, according to Ninoy Tea, Executive Director for Investment Services. "We've seen the growth of logistics hubs exponentially. We feel that it will continue to grow in the next five to 10 years," he remarked.

For the hospitality sector, opportunities are emerging in Subic in the province of Zambales and in Bohol, particularly due to military exercises and other developments. KMC Savills executives underscored the importance of lifting the moratorium on new economic zones in Metro Manila, the provision of incentives for tenants supporting green initiatives, and increasing foreign ownership leeway to boost investor confidence in the real estate market.