Residential Real Estate Leases - Philippines

In the Philippines, the projected revenue of the Residential Real Estate Leases market market is estimated to reach US$81.75bn in 2024.
House Leases dominate this market segment, with a projected market volume of US$60.52bn in the same year.
Looking ahead, the revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.96%, which would lead to a market volume of US$104.20bn by 2029.
The residential real estate lease market in the Philippines is experiencing a surge in demand due to the growing number of young professionals and expatriates seeking affordable housing options.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Philippines has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the changing preferences of customers. In the past, owning a home was considered a symbol of stability and success. However, in recent years, there has been a shift in customer preferences towards renting rather than buying. This shift can be attributed to various factors such as the increasing cost of homeownership, changing lifestyles, and the flexibility that renting offers.

Trends in the market: The Residential Real Estate Leases market in Philippines has witnessed several trends in recent years. One of the key trends is the rise of co-living spaces. With the increasing number of young professionals and students in urban areas, there is a growing demand for affordable and convenient housing options. Co-living spaces provide a solution to this demand by offering shared living spaces with individual rooms and common facilities. This trend has gained popularity due to its cost-effectiveness and the sense of community it provides. Another trend in the market is the emergence of serviced apartments. Serviced apartments are fully furnished apartments that are rented out on a short-term basis. They provide a convenient and comfortable living option for business travelers and tourists who require temporary accommodation. This trend has gained traction due to the growth of the tourism industry in Philippines and the increasing number of foreign expatriates.

Local special circumstances: The Residential Real Estate Leases market in Philippines is also influenced by local special circumstances. One such circumstance is the rapid urbanization and population growth in major cities. As more people migrate to urban areas in search of employment and better opportunities, the demand for rental housing has increased significantly. This has led to the development of new residential projects and the expansion of existing ones to cater to the growing demand.

Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in Philippines is also influenced by underlying macroeconomic factors. The country's strong economic growth, rising disposable incomes, and favorable demographic trends have contributed to the increasing demand for rental housing. Additionally, the government's focus on infrastructure development and urban renewal projects has created new opportunities for real estate developers and investors in the residential leasing sector. In conclusion, the Residential Real Estate Leases market in Philippines is experiencing significant growth due to changing customer preferences, emerging trends such as co-living spaces and serviced apartments, local special circumstances such as rapid urbanization, and underlying macroeconomic factors such as strong economic growth and government initiatives. These factors are expected to continue driving the growth of the market in the coming years.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Philippines

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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