INSIGHTS: Leading and Emerging Locations for Affordable Housing

There’s no stopping home prices from going up, particularly in key metro areas. When inflation hits, renters are among the first to feel the pressure as rental rates rise. This is partly the reason why demand for affordable housing remains strong. Real estate is often considered a worthy investment because its price can increase faster than inflation.

NCR Leads Affordable Housing Demand in 1Q 2024?

Rapid urbanization has contributed to the growing demand for residential properties in the Greater Manila Area. In 1Q 2024, the National Capital Region (NCR) had the highest number of inquiries for residential properties for sale that cost Php 6M and below on Lamudi.

NCR’s economic stability and wealth of employment opportunities continue to attract home buyers. The new ecozones are likely to bolster employment in NCR, positioning the region as the country's leading information and communications technology hub.

Based on Lamudi data for 1Q 2024, CALABARZON was the second most preferred region for affordable housing. In Luzon Island, the most popular cities for affordable homes were Baguio, Antipolo, and General Trias, in that order.?

The Surging Appeal of Areas Outside NCR?

The continued recovery of tourism activities and growth of the Information Technology - Business Process Outsourcing (IT-BPO) sector should support nationwide economic progress and the uptake of residential real estate. Using commercial activity as an indicator, Lamudi identified key areas in the Philippines where affordable housing demand is expected to grow.

Central Luzon

Improving infrastructure in Central Luzon makes it an ideal destination for residential and commercial property investments. Next to NCR and CALABARZON, Central Luzon had the third-highest share of commercial property leads on Lamudi for 1Q 2024. In the same period, Central Luzon displayed a 26% quarter-on-quarter growth in commercial property leads—the highest nationwide.

Davao Region?

Davao Region is seeing a decline in unemployment primarily due to its growing investment opportunities and booming tourism industry. The entire region registered a 24% quarter-on-quarter growth in commercial property leads based on Lamudi data for 1Q 2024. In February 2024, Amazon Operation Services announced 500 job openings in Davao City.?

Cordillera Administrative Region (CAR)

In CAR, Baguio City remains popular among travelers and property buyers alike. The city has an expanding array of residential properties, doubling as investment options because of the city’s booming rental market. In 1Q 2024, Lamudi recorded a 5% quarter-on-quarter growth in leads for commercial properties in CAR.?

For more insights, check out our full report on the Philippine real estate market in 1Q 2024.?