The Philippine property sector is entering 2026 with renewed momentum as sweeping government reforms reset the investment landscape and lift confidence across real estate segments.
“The real estate market marks a time of great opportunity. It’s a time for reset and repositioning. Real estate is always a safe haven,” Santos Knight Frank chairman and chief executive officer Rick Santos said in a briefing. He said policy clarity is restoring enthusiasm among developers and investors.
Leading the wave of reforms is the landmark 99-year Land Lease Law, which Santos described as a transformative milestone for the country’s investment ecosystem.
The law extends the allowable lease term from the previous 75-year structure—50 years plus a 25-year renewal—to a single, uninterrupted 99-year period.
Santos said the shift removes decades-long uncertainty for foreign investors who previously had to navigate renewal approvals. “The uninterrupted lease term gives foreign investors greater confidence compared to the ambiguous possibility of a 25-year renewal,” he said.
The extended horizon, he added, allows global developers to compete more aggressively in hospitality, industrial, and estate development projects where long-term planning is crucial.
Beyond land use, capital-market reforms are also reshaping the sector’s funding environment.
Santos highlighted the impact of the newly enacted Capital Markets Efficiency Promotion Act, which reduces capital taxes and enables real estate companies to raise funds more affordably through equity issuances and REIT offerings.
The result: stronger liquidity for expansion and quicker project rollout.
Lower taxes on mutual funds and unit investment trust funds are pushing more investors toward property-linked assets, particularly REITs and listed property stocks.
Meanwhile, a standardized 10 percent dividend tax for non-residents is boosting the global appeal of Philippine real estate, attracting more offshore capital into the market.
With structural reforms converging, Santos said 2026 is shaping up to be a pivotal year for property, calling the sector “well-positioned for sustained growth as fresh capital flows in.”
