The Confidence Gap: Why Many Filipinos Hesitate to Invest in Real Estate
Property ownership has long been the dream for the average Filipino. Many today recognize the importance of investing in property – in fact, a 2025 survey by Manulife revealed that 25% of respondents identified real estate as the most important financial product to have in retirement. This reflects how deeply tied homeownership is to Filipinos’ long-term sense of security.
Despite this, real estate ownership has not been the reality for most – with many actively choosing not to buy. A separate study by the Bangko Sentral ng Pilipinas (BSP) showed that the number of Filipinos choosing to rent over buying property has actually increased over the years, especially in urban centers where property prices remain elevated.
Although many would agree that financial burdens are among the biggest hurdles to investing in property, it seems that even among those with the resources to do so, there is some hesitation.
Why Doubt Exists
While real estate prices have slowed in the past year, they remain among the least affordable in the region. Naturally, this makes investors even more discerning when it comes to their choices. Even a quick search of online forums or private groups on social media shows that many would-be property buyers feel cautious of or, at worst, outright distrustful towards investing in real estate in the Philippines.
Among the reasons cited is a lack of transparency in the buying process, taxes, and other associated fees. The paperwork and dues can seem complicated and without the right guidance from a broker or sales professional, anyone can easily be overwhelmed.
On the flip side, there is now an overwhelming amount of content for investors, from developer marketing materials to social media posts and news reports. With the sheer number of sources to choose from, it can be difficult to discern which are reliable and which aren’t tied to a sales agenda – making it hard for buyers to find counsel they can fully trust.
Others still have also attempted to invest in property but have been burned by a negative experience – whether it’s an administrative problem during the buying process, sales professionals who have ghosted after the close, or developers who have failed to turn over their investment in a timely manner.
Together, these conditions have made it difficult for many Filipinos to feel confident, both in themselves and in the property landscape – leading them to have a more careful approach to investing.
House and Lot: When Safety Doesn’t Feel So Safe
Doubts exist even around the most popular types of property in the country. The vast majority of Filipino property seekers would prefer a house and lot, associating it with a feeling of “safety” that comes with owning something tangible. However, this does not mean that there are no hesitations with this particular type of investment.
One of the main concerns that buyers have is knowing which developer truly delivers. With a wide range of choices and information to sort through, property seekers find it difficult to make sense of the information they receive – from a loaded sales pitch to the horror stories from other buyers that they can read online.
Pricing is another sticking point. Many feel that house and lot developments – particularly within emerging areas just outside of the metro – are priced well beyond what the location or construction quality justifies.
Many also have doubts about the development of the areas where these homes are located. In addition to the natural risks involved – flooding, proximity to fault lines – the uncertainty of how a neighborhood or district will develop is a factor. For buyers already stretching their budgets, the fear of overpaying for a property that won’t be safe to live in or lease out and won’t appreciate proportionally is a real deterrent.
Traditional Condos: Strong Interest, Real Concern
Condos are also one of the preferred types of real estate among Filipino property seekers – especially among younger investors who value flexibility of use and proximity to urban centers.
However, similar to the hesitations that investors have with horizontal properties, many struggle to discern which developers can actually make good on their promises. Reports of fraud and high-profile cases of unit turnover delays can dissuade potential buyers who understandably want to feel secure in their investments.
An added layer to this is the well-documented condo oversupply. For potential investors, continued reports of this beg the question as to why prices remain high despite supply outpacing the demand. Without a clear explanation, many may misinterpret this as a sign that prices are artificially inflated – making them hesitant to enter the market.
Specific to traditional condos, there also remains a longstanding misconception around ownership: the persistent myth that ownership of one’s unit will end after 50 years. Many misunderstand The Condominium Act to mean that condos over 50 years old will automatically be sold, when the law simply states that condos of that age and are no longer viable may be considered for either sale or demolition – subject to certain terms and conditions.
Others still have concerns about the realities of starting a rental business with a condo. Having to manage the property, find and secure tenants, and take care of maintenance costs – all while maintaining a busy lifestyle – makes the idea of rentals seem overwhelming. With rents remaining low, the effort needed to run a leasing business does not seem proportional to the returns.
So, What’s The Solution?
Amid these growing doubts, developers like Anchor Land are taking an active role in closing the confidence gap. Through advocacy initiatives like The Property Decision, they connect with communities of Filipino property seekers, offering a safe space to have candid and personal discussions on the ins-and-outs of real estate investing and sustainable options that are available in the market today.
Beyond financial and investor education, they directly address these concerns by designing properties with a built-in investment structure. Among these innovations are Destination Residences – developments in tourism-driven locations that are purpose-built to capitalize on the real demand for accommodations in these areas.
Under this model, owners can enter into a lease agreement with Anchor Land, who then professionally manages the unit as part of a fully-operated hotel. Investors choose how long they want to lease their unit and receive a quarterly payout for the entire duration, regardless of occupancy.
For investors who have been put off by the unpredictability of self-managed rentals, the low effort and fixed returns of this model offer a meaningful alternative.
From Hesitation to Confidence
Ultimately, the hesitation and lack of confidence that investors feel is more than just a matter of available funds. Closing this gap takes trust, transparency, and providing options that genuinely align with investors’ goals.
For those navigating property investing – whether for the first time or simply to grow their portfolio – keeping themselves informed and staying clear on their investment goals is key to making the right decisions. The confidence to invest does not necessarily come from having more capital or having all the right answers. Rather, it comes from being able to ask the right questions and having a partner they can trust to answer them with honesty and clarity.