Japan Eyes Real Estate Investment in Philippines

The Japanese government is exploring expanded real estate investment opportunities in the Philippines, as officials from Japan’s Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) met with the Board of Investments (BOI) to deepen bilateral economic cooperation.

Held on Feb. 20, 2025, at the BOI Main Office, the meeting highlighted the Philippines’ robust demand for residential, commercial, and industrial real estate, as well as its rapidly growing economy as key drivers attracting Japanese developers.

“Through partnerships with organizations like Japan’s Ministry of Land, Infrastructure, Transport, and Tourism, the government is realizing its goal of further increasing investments into the Philippines,” said Ma. Corazon Halili-Dichosa, executive director of BOI’s Industry Development Services.

“The BOI remains steadfast in its commitment to promoting real estate investment, striving to create a more business-friendly environment for investors,” she added.

The discussions are part of Japan’s Joint Network for Overseas Real Estate Business (J-NORE), which aims to support Japanese developers expanding abroad by working with foreign governments and resolving regulatory or institutional hurdles.

The meeting emphasized information exchange between Japanese and Philippine authorities, including private sector stakeholders, to strengthen development and property management systems.

Real estate consultancy Colliers Philippines presented current market trends and investment hotspots during the briefing.

Among the sectors highlighted for growth were logistics, warehousing, industrial parks, and mixed-use developments, particularly in regional areas supported by new infrastructure.

The firm also cited sustained demand for residential and office space, supported by remittances, outsourcing activity, and infrastructure projects under the Build Better More program.

Japan’s interest in the Philippine property sector builds on its long-standing investment in infrastructure and public works, primarily through the Japan International Cooperation Agency (JICA).

The Department of Trade and Industry has identified real estate, logistics, and infrastructure as priority sectors under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which offers tax perks to qualified foreign investments.

According to the BOI, approved foreign investments in real estate activities reached PHP 13.5 billion in 2024, a 27% increase from the previous year, underscoring renewed investor confidence in the sector.

The Philippine government aims to position the country as Southeast Asia’s preferred investment hub by leveraging strategic partnerships like that with Japan’s MLIT.

Both sides expressed interest in developing collaborative platforms and pursuing sustained dialogue to address challenges and promote long-term real estate partnerships.