The PRIME Philippines’ Exclusive Presentation of the Mid-Year Property Market Report titled “The Confidence Gap: Closing the Distance Between Fear and Fact” enriched by their recent Business Confidence Survey, was held on August 5, 2026 at GreatWork, 32nd Floor, Mega Tower, Ortigas Center, EDSA, Mandaluyong City.
This media briefing was an exclusive presentation of the Philippine Real Estate Market Overview that focuses to the Industrial, Office and Retail in the business community in relation with the prevalent situation of the economy in the Phliippines and beyond.
During the event Mr. Jet Yu, Founder & CEO, PRIME Philippines, mentioned that PRIME fielded a real estate survey on the Middle East conflicts, impact, drawing directly from landlords, occupiers, and investors rather than relying on secondary market commentary.
He also mentioned that the survey reflects how respondents are adjusting net income expectations , absorbing higher operating costs from inflation, and recalibrating financial strategies in response to the shock. It also captures their broader need on portfolio activity, capital markets, and outlook.
Mr. Sean Chua, Senior Assistant Manager Research & Advisory; Sondi Tuazon, Senior Head, Tenant Representation Retail Markets; Joy Rosario, Vice President, Industrial Solutions Department; and Mervyn Valenzuela, Vice President, Tenant Representation Office Markets are one of the trusted speakers or communicators of PRIME Philippines who had shared insights of the theme or title “The Confidence Gap: Closing the Distance Between Fear and Fact”.
Fear refers to what worries the market, and Fact refers to what the data shows in the Philippine Real Estate Market in Industrial, Office, Retail and the economy of the country. With the unsold condo “inventory” (79K-81K) in NCR (2026H1), investor appetite for condos has dropped significantly due to the “condo crisis”. But the fact is 37.5% (81K) of the unsold units are ready-for-occupancy. Vacancies are concentrated in Pasay, Paranaque, and Muntinlupa. Most unsold inventory is under construction or unbuilt.
What also worries in the market is 1/3 of jobs exposed to AI displacement. The BPO sector faces the highest AI-related job risk, according to IMF. In fact, what the data shows is 2M AI-enabled BPO workers (2028 target). The BPO industry closed 2025 with revenue, up 5% year-on-year in 2025. (BPAP targets to augment the BPO talent pool to expand global capability centers.
FEAR (What worries in the market): 7.2% increased of Inflation rate (April 2026). Diesel prices rose 111% since the conflict began. Gasoline prices increased 71.6% over the same period. FACT (What the data shows): PHP 344.6 B increase in value of certified renewable projects in 2026. (BOI). Inflation pressures were also seen in Vietnam, the US, and the Eurozone. The DOE has also fast-tracked 1,471 MW of renewable energy capacity.
FEAR (What worries in the market):2.8% decrease of GDP growth, weakest since pandemic (2026Q1). Consumer confidence fell to -42% in 2026Q2. Slower growth and weaker sentiment may weigh on retail recovery. FACT (What the data shows): >90% of average occupancy of major malls (2025FY – 2026H1). Expansions are continuous for F&B, grocery, convenience, and health formats as well.
FEAR (What worries in the market): 30% decline in oil flow through Hormuz. Higher energy costs threaten industrial sector growth. Supply chain risks could weigh on logistics demand. FACT (What the data shows): 95.2% warehouse occupancy recorded in 2026H1. Over 300,000 sqm of warehouse space was completed in 2026H1. E-commerce-driven demand continues to support the sector. Pent-up demand to beef up inventories.
The 2026 PRIME Philippines compendium Survey.
PRIME Philippines asked landlords, occupiers, and developers how they are reading the market right now. Below is the preliminary results.
Market Shocks Pressure Businesses, but Net Income Impact Remains Modest.
Ongoing shocks have weighted on business performance, with 33.4% of respondents reporting declines in net income compared to 190% reporting gains, a ration of about 1.8 to 1. Gains were concentrated almost entirely among landlords and occupiers. Landlords accounted for 62.5% of all gains reported and occupiers for the remaining 37.5%, while no investors in the sample reported a net income gain. Even so, overall impact remained modest: 88.1% experienced changes of 10% or less, and only 11.9% reported substantial gains or losses.
Despite Disruptions, Stakeholders Remain Bullish on the Market
Confidence tilted toward the positive amid ongoing economic disruptions, with respondents clustering at neutral- to-optimistic scores and outnumbering pessimistic ratings by roughly four to one. Sentiment was measured rather than exuberant, peaking at slightly optimistic rather than the highest end of scale.
Confidence grows when perception is tested against evidence. This publication examines the Philippine industrial, office and retail markets to identify where uncertainty ends and informed opportunity begins. Risk. Vacancy. Uncertainty. Inflation. Evidence creates Confidence.
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REFERECE: PRIME Philippines