The Policy Shift That Changes Everything for Foreign Capital
In 2025, the Philippine government signed into law the 99-year land lease provision — a legislative change described by Santos Knight Frank Chairman Rick Santos as 'a pivotal step in strengthening the Philippines' investment landscape.' The law allows qualifying foreign investors to secure long-term land tenure for up to 99 years, directly addressing one of the most persistent barriers to foreign real estate capital in the country.
Why does this matter for Filipino buyers? Because foreign capital flows in Philippine real estate are not just about foreigners buying condos. They are about the large-scale, long-gestation developments that require foreign institutional backing — master-planned communities, industrial estates, tourism zones, and mixed-use townships. When foreign capital can plan over a 99-year horizon, it unlocks investment in exactly the kinds of developments that create the amenities, employment, and infrastructure that make adjacent residential properties appreciate.
What the REIT Amendment Means
The progressive amendments to the Philippine REIT (Real Estate Investment Trust) framework — also signed into law in 2025 — widen the asset classes eligible for REIT structures. Santos Knight Frank notes this 'broadens the universe of acceptable assets,' meaning more developers can now securitize income-producing real estate through listed vehicles accessible to retail investors.
For individual buyers, the practical implication is this: as the REIT market matures in the Philippines, it creates a liquidity layer beneath the property market that didn't previously exist at scale. Developers with listed REITs have stronger balance sheets, more capacity to deliver projects on time, and greater transparency about asset quality — all of which benefit end-buyers who are making six-to-eight figure commitments in pre-selling projects.
The Bottom Line for Buyers in 2026
These policy changes do not create immediate price movements for most residential buyers. What they do is strengthen the institutional foundations of the Philippine property market over the medium and long term. The 99-year lease provision makes the Philippines meaningfully more competitive with ASEAN peers for foreign direct investment. The REIT reform deepens capital market participation in real estate. Together, they signal a policy environment that is becoming more mature, more transparent, and more internationally competitive — which is precisely the kind of structural backdrop that supports sustained property appreciation over time.
For buyers considering a 5–10 year hold on a Philippine property, 2026's policy environment is materially better than 2020's, 2018's, or even 2022's. The institutional foundations are improving. The question is less 'should I buy?' and more 'what exactly should I buy, and where?' That's the conversation we have with every client. Contact us to start yours.