THE ongoing conflict in the Middle East could weigh on the Philippine real estate sector, particularly the residential market, as remittances from overseas Filipino workers (OFWs) face potential disruption, according to Colliers Philippines.
The property advisory firm said the evolving geopolitical situation could create uneven impacts across property segments, with residential demand facing headwinds from weaker remittances, while industrial assets may benefit from shifting logistics strategies driven by rising fuel costs.
Joey Roi Bondoc, research director at Colliers Philippines, said prolonged tensions in the region may negatively impact remittance inflows, which account for a significant portion of household spending in the country.
“Remittances from the Middle East comprise nearly 20 percent of total inflows. If the conflict persists, this could soften remittance growth and, in turn, affect residential demand,” Bondoc said.
He noted that lower remittances are likely to dampen demand for housing, especially in the affordable to lower mid-income segment, where property prices typically range from P2.5 million to P7 million per unit.
Bondoc added that households dependent on remittances may prioritize essential spending amid uncertainty, potentially delaying purchases of big-ticket items such as homes.
“Remittance-receiving families are expected to focus on necessities, which could result in deferred property acquisitions,” he said.
Overseas Filipino cash remittances reached US$3.02 billion in January 2026, 3.5 percent higher than the $2.92 billion recorded in January 2025, according to the Bangko Sentral ng Pilipinas.
The United States remained the top source of cash remittances to the Philippines in January 2026, followed by Singapore and Saudi Arabia.
Logistics, industrial property
Meanwhile, Colliers flagged emerging cost pressures in the logistics and industrial property segments as fuel prices surged.
Julius Guevara, senior director and head of Capital Markets and Investment Services at Colliers Philippines, said shipping and logistics firms have begun imposing fuel surcharges of at least 25 percent, as diesel prices climb past P100 per liter.
“We are seeing transportation fleets being adversely affected by higher fuel costs. While warehouse lease rates have yet to increase, we expect demand to shift,” Guevara said.
He explained that logistics players may prioritize warehouses located near ports and major expressways to reduce transportation expenses.
“Facilities with strategic access and modern, efficient designs are likely to see stronger demand as companies seek to optimize costs,” he added. / KOC