Manila Is the World’s Fastest-Growing Luxury Property Market

(SPOT.ph) Manila has overtaken Dubai as the fastest-growing luxury property market.

According to the Knight Frank Wealth Report 2024, Manila's prime residential prices surged by 21.2% over the past year. This growth is largely driven by substantial domestic and foreign investments, as well as the thriving fintech and startup scene in the city.

Also read: How Much Are Houses in the Most Expensive Subdivisions of Metro Manila?

How did Manila become the fastest-growing luxury property market in the world?

In 2023, Knight Frank claimed the property market in Southeast Asia is expected to stabilize in the coming years, with Manila leading the way thanks to a projected growth of 5.9% in 2024.

We’re already seeing this in real time. Several real estate companies have launched their most luxurious projects yet—Ayala Land with Park Villas, Shang Robinsons Properties with Aurelia Residences, and Megaworld with Uptown Modern, to name a few.

“There are a number of factors that are pushing up the value of luxury projects in the Philippines,” Lance Gokongwei, CEO of Robinsons Land’s parent JG Summit, told Forbes. One of them is that “the Philippines sits in a very strategic location in Southeast Asia, close to many of the large regional hubs.”

At the same time, there is a growing disparity between the luxury market and the general housing market, where housing supply and affordability remain a significant issue for the average Filipino family. 

Philippine Institute for Development Studies found that most Filipinos can't afford houses near their workplaces, with low-income families particularly struggling with the standard rule of using 30% of their income on housing costs.

In addition, the UN-Habitat Philippines reported a housing backlog of 6.5 million units in 2022, with this figure is expected to balloon to 22 million units in 2040.

Dubai has long been a favorite for international buyers with its luxurious lifestyle and favorable climate. However, its price growth is expected to slow to 5% in 2024. This slowdown is due to high living costs, market saturation, and competition from more affordable luxury markets.

Also read: How Much Are the Most Expensive Condos in Metro Manila?