The Impact of Manila's Growing Tourism Industry on Real Estate Growth in 2026: 4 Key Developments and Opportunities

December 4,2025

Tourism in Manila continues to strengthen as the city enters 2026, driven by a surge in international arrivals, returning business travelers, and the revival of large-scale events, conventions, and hospitality investments. As the country's primary gateway, Manila remains at the center of this growth—reshaping its real estate landscape and amplifying opportunities for property owners, investors, and developers.

With new developments rising in Makati, BGC, Manila Bay, and Pasay, and with the government targeting even higher tourist arrivals in 2026, the impact on Metro Manila's real estate sector has become more visible than ever. Below, we explore how the tourism boom is influencing the property market and what opportunities lie ahead for stakeholders in 2026.

1. Higher Property Values in Manila's Prime Tourism-Linked Locations

Entering 2026, property values in key Manila districts continue to climb as tourism demand rises. Areas such as Makati CBD, Bonifacio Global City (BGC), Manila Bay, and Newport City remain top choices for short-term stays, business trips, and expat accommodations. This consistent demand has led to:

• Stronger price appreciation for condos near commercial centers and lifestyle hubs

• Higher rental values, especially in fully furnished units

• Increased interest from foreign buyers and long-stay tourists

With tourism expected to grow further in 2026, properties located near malls, parks, hotels, and major business districts will likely see continuous value appreciation. For investors, this means a more predictable roadmap for capital growth and steady demand from both long-term renters and short-stay guests.

2. Tourism-Driven Developments Reshaping Manila's Urban Landscape in 2026

The tourism boom is accelerating large-scale developments across Metro Manila as the city prepares for even more arrivals in 2026. Developers are prioritizing:

• Serviced residences and branded hotel apartments

• Mixed-use projects with retail, entertainment, and business facilities

• Regeneration of older districts, especially in Manila and Pasay

• Transit-oriented developments to support easier visitor mobility

Campaigns to enhance Manila's tourism identity—such as waterfront redevelopment along Manila Bay, the expansion of NAIA terminals, and the continued rise of lifestyle destinations—are significantly improving the city's appeal. These developments increase foot traffic, raise land values, and make surrounding residential projects more attractive to both tenants and investors.

3. The Growing Market for Second Homes and Hybrid Vacation Residences in 2026

More tourists and expats are now choosing to secure second homes in Manila, a trend that continues to grow heading into 2026. This demand is strongest in:

• Makati (Legazpi & Salcedo Village)

• Ortigas (Rich residential-hotel hybrid developments)

• BGC and Uptown Bonifacio (luxury towers with hotel-style amenities)

• Manila Bay/Pasay (close to entertainment hubs and the airport)

These buyers are typically long-stay tourists, remote workers, multinational executives, or frequent visitors who prefer the privacy and comfort of condo living over hotels. As hybrid living becomes more common in 2026, developers are launching projects that blur the line between residence and serviced apartment—fueling sustained demand for new units and premium amenities.

For investors, this segment presents opportunities in high-yield rentals, resale gains, and portfolio diversification.

4. The Tourism-Fueled Economy Strengthens Real Estate Demand Into 2026

The economic contributions of tourism extend far beyond hotels and attractions. As tourism expands in 2026, it fuels:

• Growth in hospitality, retail, F&B, entertainment, and transport sectors

• Increased job creation, attracting more workers to move to Metro Manila

• Higher consumption and business activity, benefiting commercial spaces

• Demand for affordable and mid-market rentals for transient workers

With stronger economic cycles in 2026, developers are predicting sustained demand for both residential and commercial properties. For landlords, this means higher occupancy rates and lower vacancy risks throughout the year.

2026 Is a Defining Year for Manila's Tourism-Driven Real Estate Market

As Manila prepares for another record-breaking year of tourism in 2026, the real estate sector is positioned for long-term growth. Rising property values, revitalized urban districts, expanding hospitality developments, and increasing demand for hybrid living all point to a vibrant and resilient market.

For homeowners, investors, and developers, the synergy between tourism and real estate presents a powerful window of opportunity in 2026:

• Sell at stronger market values

• Earn higher rental income

• Invest in tourism-connected districts

• Capitalize on new mixed-use and residential-hotel developments

Manila's transformation—fueled by tourism, economic growth, and continuous urban improvements—promises a dynamic future for those ready to take part in the city's evolving real estate landscape.

Source: 

https://www.bedandgoinc.com/post/the-impact-of-manila-s-growing-tourism-industry-on-the-manila-real-estate-growth-4-key-developments