Why the savvy are betting big on Philippine real estate - Federal Land NRE Global

Why the savvy are betting big on Philippine real estate

For investors, mixed-use developments offer resilience and rising returns. —condocontrol.com

Amid volatilities, the well-informed see opportunities where others see risk.

They view market shifts as opportunities, signaling them to reassess, reallocate, and innovate.

Challenges become catalysts for new prospects, proving the age-old adage that fortune favors the bold.

Window of opportunity

Such can also be said of savvy property investors who are seizing this moment.

Despite reports of oversupply and weak demand in Metro Manila’s condominium market, experts and discerning buyers see a rare chance. The current landscape allows them to invest in emerging premium neighborhoods, expand outside the capital, or acquire prime properties within Metro Manila.

The reported oversupply, after all, is not a blanket issue affecting the entire industry, but rather localized, said Professor Enrique M. Soriano III, executive director of W+B Advisory Group.

“Certain pockets of Metro Manila, particularly in the mid-market and investor-driven segments, have seen a surge in unsold units. However, this does not reflect the broader health of the property sector, which continues to see strong demand in other segments—such as horizontal developments, luxury residences, and emerging secondary cities,” Soriano explained.

Despite reports of oversupply and weak demand in Metro Manila’s condominium market, experts and discerning buyers see opportunities. —TED ALJIBE/AFP

Timing is everything

Soriano, along with banking and property experts, highlighted the cyclical nature of the industry.

Historical trends show that the Philippine property sector has weathered crises—from the Asian financial crisis of 1997 and the global financial crisis of 2008 to the COVID-19 pandemic, among others. Each time, it followed the same pattern: downturn, recovery, expansion, then correction. This underscores real estate’s long term value and appreciation.

Today’s cooling phase therefore offers a strategic entry point for investors. Purchasing property now allows you to secure an appreciating asset under favorable conditions, positioning buyers for substantial gains when the cycle turns upward again. Now is no doubt one of the most advantageous periods to invest in Philippine real estate.

Observatory Commercial View

Right projects, reputable developers

However, success depends on choosing the right projects by reputable developers.

In Metro Manila, select well-located mixed-use developments maintain strong long term value despite the prevailing supply narrative. Such projects benefit from sustained demand, making them resilient investments poised for appreciation over time.

One example is The Observatory, a 4.5-hectare mixed-use complex by Federal Land NRE Global Inc. (FNG), the powerhouse partnership between Federal Land Inc. and Japan’s Nomura Real Estate Development Co. Ltd.

Rising in Mandaluyong City, it places future residents near the Ortigas, Makati and Bonifacio Global City business districts—catering to professionals and families seeking accessible, convenient, and modern living spaces. It further distinguishes itself through its premium location; comprehensive offerings comprising residences, offices and retail hubs; and panoramic vistas of Metro Manila’s skyline.

Yume Drop Off Semi Aerial

Suburban shift

For those seeking a different pace, suburban real estate is gaining momentum.

With hybrid work models reshaping lifestyles, more buyers are venturing beyond Metro Manila in search of greener surroundings, and masterplanned communities. It’s not a mere fallback, but rather a deliberate decision to pursue healthy, modern lifestyles.

Offering more spaces, better air quality, improving infrastructure and increasingly sophisticated communities, the suburbs are no longer just bedroom towns. They’re also emerging as self-contained hubs where people can live, work and thrive without needing to compromise on modern comforts.

This makes it ideal for young families eyeing to live in safe and conducive spaces, retirees wanting the familiarity of living in a house, and investors looking forward to tomorrow’s suburban havens.

A sound investment

Whether you’re drawn to the metro’s dynamic energy or the laidback charm of the suburbs, a sound property investment with a reputable developer secures long term growth while enhancing your lifestyle.

City condominiums, after all, offer connectivity and immediate rental potential, while suburban properties can similarly provide long term value appreciation, expansive living environments, and a more balanced lifestyle.

Ultimately, the decision comes down to what fits your needs—be it work-life balance, capital appreciation, or consistent rental income.

One thing is clear—the current market presents a unique opportunity, but these conditions are fleeting. Soon, prices and financing options will shift, making today the right time to invest in Philippine real estate. As they say, the best deals are sometimes made when others hesitate.

General Question
Can a foreigner purchase a condominium unit in the Philippines?

Yes, foreigners are allowed to own condominium units in the Philippines, as stated in Section 5 of Republic Act No. 4726, otherwise known as the Condominium Act.

Yes, on the condition that the parent or legal guardian signs the contract on behalf of the minor. Please contact us for more details.

Yes, you can upgrade your purchase. The Developer will first check if the preferred unit is still available. If it is still available, the Buyer will be required to submit a written request. Once the request is approved, a new contract will be drawn up for the upgraded unit.

Yes. The process to downgrade is similar to that of upgrading a unit purchase. However, all expenses incurred by the Developer (commission, incentives, penalties, downgrading fee, etc.) shall be deducted from the Buyer’s original contract price, in favor of the Developer.

What are the available payment terms?

There are several payment terms available – Cash Term, Bank Financing Term, Deferred Cash/Installment Term, and No Down Payment Term. Please contact us for more details as the availability of these payment terms also vary per project.

Yes, you may change or restructure your selected term, but this will also be subject to Management’s approval and we will be charging a minimal processing fee.

Yes, we accept payment in US dollars. The exchange rate shall be based on the date the payment is credited to the Developer’s account.

On or before the due date of the first (1st) monthly amortization, the Buyer is required to submit Postdated Checks for the remaining monthly amortizations (that is, until the end of the payment term).

The developer adheres to provisions as stipulated in Republic Act No. 6552 or the “Realty Installment Buyer Protection Act,” also known as the Maceda Law. This law states that when the Buyer has paid at least two (2) years of installments, the seller/developer shall refund 50% of the total payments made if there is a cancellation on the purchase. For payments less than two years, the provisions as stipulated in the Contract to Sell will prevail.

What do I need to do to officially reserve a Condominium Unit?

Requirements to officially reserve a unit or lot are as follows:

1. Full payment of the Reservation Fee

2. Photocopy of one (1) valid government-issued IDs of Principal Buyer/s and Spouse/s (if applicable). Valid government-issued IDs with photos and signatures:

  • Passport
  • Driver’s License
  • GSIS ID
  • SSS ID
  • Professional Regulatory Commission ID
  • Tax Identification Number ID card
  • Senior Citizen ID
  • Postal ID
  • Photocopy of TIN ID card or BIR validated 1904 form

3. Fully accomplished and signed Reservation Application

4. Fully accomplished Buyer’s Information Sheet. For purchase under a Corporation, the following additional documents are required:

  • Articles of Incorporation and By-Laws (photocopy)
  • Secretary’s Certificate indicating the name of authorized signatory (notarized)
  • BIR-validated 1903 or copy of Certificate of Registration
  • For the authorized signatory to submit items 2 and 3 above

The reservation is valid for thirty (30) calendar days from the settlement of reservation fee. Kindly submit all the required documents to finalize the unit booking.

No, the reservation fee is non-refundable and non-transferrable. As stated in the Reservation Application, the reservation fee will be forfeited in favor of the Developer if no succeeding payments are received.

Will I be allowed to inspect the Unit before the actual turnover?

Yes, the Hand Over Team will coordinate with the Buyer on the schedule of unit inspection.

Yes, the Buyer may assign a representative to accept the unit on his behalf thru a notarized Special Power of Attorney (SPA). The SPA is also required to bring a valid ID plus photocopy.

Yes, you may have your unit leased out.

Monthly Association Dues vary per project, depending on the operating expenses of the building. Association Dues are used to defray the cost of maintaining and operating the building’s common areas and facilities. These costs include administration/management fees, janitorial, security, taxes and licenses, insurances, real estate tax, maintenance of equipment water distribution, garbage collection, maintenance of sewage treatment plant, and other miscellaneous expenses.

The unit turnover will be scheduled when all the following conditions are met:

  • Full payment of the contract price (including penalties and interests, if applicable)
  • Complete submission of all the required sales documents (listed above)
  • Payment of related Advance Registration Charges (ARC).

No, this is not allowed. Buyers are encouraged to either avail of bank financing (with accredited banks) or in-house financing to pay the unit in its entirety.