The Private Sector Advisory Council Infrastructure Sector, or PSAC-Infra, has laid out key recommendations to manage rising property costs, expand access to affordable housing, and protect jobs and investments as the real estate sector grapples with higher expenses for construction and financing. The proposals were presented during a special meeting with President Ferdinand Marcos Jr. at Malacañang on September 22, alongside updates on artificial intelligence and investment policies.
Real estate remains a vital pillar of the economy. PSAC-Infra data shows every peso spent in the sector generates an estimated 3.44 pesos in total economic output, benefiting construction, banking, retail, logistics, business process outsourcing, and tourism. Construction alone employs some 4.7 million Filipinos, equal to 9.6 percent of the national workforce. The sector’s contribution to gross domestic product stood at 5.8 percent in the first quarter of 2026, down from the pre-pandemic average of 6.65 percent in 2018 and 2019. Council leaders warned slower project launches and construction could hurt employment, housing delivery, and revenues for local governments.
PSAC Lead Convenor and Aboitiz Group President and CEO Sabin Aboitiz emphasized strong partnership between government and private business is essential to address pressures facing real estate and housing, with policies that keep Filipino families, jobs, and investments front of mind. He delivered opening remarks at the meeting.
A core proposal centers on the Real Property Valuation and Assessment Reform Act, or RPVARA. PSAC-Infra suggests pushing back full implementation by four years to 2031, extending the real property tax amnesty by the same period, and rolling out changes gradually with annual tax increases capped at 6 percent over the first three years. This would give property owners and local governments more time to adapt to new valuation rules.
To tackle the country’s estimated 3.7-million-unit housing backlog, the council is calling for an Urban Housing Affordability Program. Under this plan, developers could sell ready-for-occupancy condominium units originally priced higher at significant discounts, in return for government incentives or credits toward their balanced housing obligations. The move would open more urban housing to families while clearing existing inventory. Ayala Corporation Chief Social Infrastructure Officer Paolo Borromeo said the industry stays committed to supporting the government’s socialized housing program and sees clear opportunities to partner with the Department of Human Settlements and Urban Development, or DHSUD, and other agencies to deliver more affordable homes.
PSAC-Infra also urges updating price ceilings for socialized housing within 2026, well ahead of the scheduled December 2027 review, to reflect climbing construction costs. It additionally proposes deeper discussions between public and private stakeholders on flexible ways for developers to meet balanced housing requirements.
Separately, the meeting discussed forming a National AI Implementation Task Force to seize opportunities and manage risks from artificial intelligence, especially for workers in the information technology and business process management sector. PSAC-Infra also noted the government has lifted the moratorium on Philippine Economic Zone Authority, or PEZA, accreditation for IT centers and parks within Metro Manila. Overall, the package aims to strike a fair balance: making housing more affordable and property costs manageable, while keeping investment flowing, building activity steady, and jobs secure across the economy.
