11 Key Takeaways from PSA's Q3 2024 GDP Report and What They Mean for Manila Real Estate
- bedandgoinc
- 7月1日
- 読了時間: 5分
July 1, 2025
The Philippine Statistics Authority (PSA) released its official data for Q3 2024, showing a 5.2% year-on-year GDP growth. While this was slightly lower than expected, the report reveals key structural strengths in the economy—especially in wholesale and retail trade, financial services, and construction—sectors that have direct and meaningful impacts on the Metro Manila real estate landscape.
From stronger household spending to booming construction, the figures highlight that Metro Manila remains the beating heart of national development. This blog takes a deep dive into 11 insights drawn from the PSA GDP data, specifically focusing on how they affect real estate activity in the capital region.
1. GDP Growth of 5.2% Signals Resilience in Urban Markets
The Q3 2024 GDP growth of 5.2% is a moderate but significant indication of recovery. This number reflects continued business operations, gradual consumer recovery, and investment confidence across the country. In Metro Manila, where the bulk of financial activity, construction, and commerce is concentrated, the effect of this growth is far more pronounced in property markets.
The figure supports a sustained uptick in real estate inquiries, pre-selling interest, and leasing activity—especially in centrally located areas such as Makati, BGC, and Ortigas.
2. Construction Growth at 9.0% Reflects Rising Development in Manila
A notable highlight from Q3 was the 9.0% year-on-year growth in construction, one of the strongest contributors to GDP this quarter. This directly supports the surge in new residential condo launches, mid-rise developments, and mixed-use estates across Metro Manila.
Key zones like Pasig, Mandaluyong, and the Bay Area are witnessing renewed developer activity. This indicates confidence in long-term urban demand and confirms that Metro Manila's skyline will continue evolving rapidly through 2025.
3. Services Sector Grew by 6.3%, Fueling Real Estate Demand
The Services sector, which grew by 6.3%, remains the dominant economic engine in Q3. Services include retail, financial activities, and real estate operations—all of which are largely based in Metro Manila.
This growth supports sustained demand for:
Office spaces in CBDs
Commercial storefronts in malls and mixed-use buildings
Residential leasing for workers in service-heavy industries
Expect continued rental demand and capital appreciation in serviced neighborhoods such as Salcedo Village, High Street South, and Greenhills.
4. Financial and Insurance Activities Soared by 8.8%
One of the most robust growth areas was financial and insurance activities, expanding by 8.8% year-on-year. This surge is tied to Metro Manila's role as the country's financial hub and underlines increased liquidity and credit availability.
This is beneficial for the real estate sector in two ways:
Developers are accessing more capital to fast-track construction.
Buyers and investors are securing better financing terms for property acquisition.
This has led to stronger take-up rates for both pre-selling units and ready-for-occupancy condos, especially near major financial districts.
5. Wholesale and Retail Trade Grew by 5.2% — Boosting Commercial Leasing
Retail and trade expanded by 5.2%, powered by renewed consumer spending. Metro Manila's malls, high streets, and lifestyle hubs are bouncing back with foot traffic, tenant renewals, and expansion of food, fashion, and lifestyle brands.
Commercial landlords are benefiting from:
Higher leasing occupancy in malls
Increased interest in ground-floor retail spaces
Opportunities for short-term pop-up stores and hybrid retail offices
Expect retail-centric zones such as Greenbelt, Rockwell, Uptown, and BGC High Street to see stronger demand and higher lease prices in 2025.
6. Household Final Consumption Grew by 5.1% — Strengthening Urban Residential Demand
Household spending rose by 5.1%, making it the top contributor to Q3 GDP growth. In Metro Manila, this translates to higher demand for housing, utilities, and consumer-centric real estate like condos near transport hubs, schools, and malls.
The trend favors:
Micro-studio units for working professionals
2BR to 3BR condos for families returning to city life
Fully furnished rentals catering to returning expats and digital nomads
Rental yields are expected to stabilize or even rise in areas like Eastwood, Mandaluyong, and North Makati.
7. Gross Capital Formation Jumps by 13.1% — A Green Light for Real Estate Investment
The 13.1% growth in gross capital formation signals renewed investor confidence in durable goods and infrastructure. For real estate, this means more spending on:
Land acquisition
Vertical developments
Commercial real estate expansions
Local and foreign property investors are returning to Metro Manila, seeking pre-selling units with high capital appreciation potential and stable rental income.
8. Government Final Consumption Expenditure Up by 5.0%
With government spending growing by 5.0%, much of this has been channeled into infrastructure projects around Metro Manila, including:
Subway lines
Flood mitigation systems
Urban roads and bridges
These improvements enhance the livability of fringe areas such as San Juan, Valenzuela, and Quezon City, increasing demand and property value in less saturated parts of the metro.
9. Agriculture Declines by 2.8% — Accelerating Urban Migration
The only major sector to post a decline was Agriculture, forestry, and fishing, down 2.8%. This reinforces the trend of rural-to-urban migration, increasing the pressure on Metro Manila to provide more affordable and accessible housing.
Developers focusing on mid-income vertical housing in Caloocan, Novaliches, and Sta. Mesa are likely to benefit from this demographic shift.
10. Exports Down 1.0%, While Imports Rose by 6.4% — Supporting Local Construction
The decline in exports (–1.0%) was offset by a 6.4% increase in imports, reflecting higher demand for imported construction materials, machinery, and luxury goods. This supports building activity and fit-out services in Metro Manila's real estate market.
Imports also support the hospitality and retail sector, with high-end units and tourist-friendly properties (such as short-term condos in Pasay or Makati) benefiting from better amenities and furnishings.
11. Gross National Income Grew by 6.8% — OFW Remittances Fueling Urban Condo Sales
Gross National Income (GNI) increased by 6.8%, supported by a 19.3% growth in Net Primary Income from abroad. This includes OFW remittances, which are historically invested in real estate.
Metro Manila continues to be the top choice for:
OFW families buying condos in prime or developing areas
OFW investors building rental income portfolios
Overseas retirees settling in urban-lifestyle residences
Developments offering rent-to-own schemes, flexible financing, and RFO units are experiencing strong OFW-driven sales.
Why Q3 2024 GDP Data Matters for Metro Manila Real Estate
The PSA's Q3 2024 report shows a balanced and resilient economy, with strong performances in construction, finance, and retail—all of which are centered in Metro Manila. These macroeconomic signals confirm what developers, brokers, and investors are already experiencing: the capital's property sector is on an upward trajectory.
For real estate professionals and buyers, the message is clear:
Target strategic locations near infrastructure projects
Invest early in pre-selling units with favorable financing
Monitor retail and commercial recovery for mixed-use opportunities
Metro Manila remains the focal point of economic and real estate growth. The numbers from Q3 are not just a report—they are a roadmap for your next big move in 2025.
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