By Beatriz Marie D. Cruz, Reporter
THE RECENTLY enacted law allowing foreign investors to lease private lands in the Philippines for up to 99 years is expected to drive up land values and rental prices, boosting demand across office, residential, and industrial segments, property consultants said.
“The extension of land leases for foreigners to 99 years is expected to push up land values and rentals over time, especially in key business hubs, industrial zones, and tourist destinations,” said Jamie Dela Cruz, research manager at KMC Savills, Inc.
“With longer security of tenure, foreign investors are more likely to commit bigger capital, which can fuel both demand and pricing.”
President Ferdinand R. Marcos, Jr. recently signed Republic Act No. 12252, or the Act Liberalizing the Lease of Private Lands by Foreign Investors.
The law increases the maximum lease term from 50 to 99 years, although the President may impose shorter terms for investors engaged in vital services or critical infrastructure.
Roy Amando L. Golez, Jr., director for research at Leechiu Property Consultants, Inc., said the law would benefit high-potential growth areas and income-generating properties such as resorts, hotels, warehouses, offices, and retail spaces.
“A longer land lease can also encourage more launches of industrial parks, logistics hubs, resorts, and mixed-use townships,” said Ms. Dela Cruz, noting that segments requiring long payback periods — such as hospitality and large-scale residential developments — stand to gain the most.
Janlo C. De Los Reyes, head of research and strategic consulting at JLL Philippines, added that extended land leases improve the country’s competitiveness, giving foreign investors greater confidence to commit to high-value developments.
However, consultants cautioned that longer leases could encourage speculative buying, potentially making property less affordable for locals.
Safeguards, such as protections for landowners, clear zoning rules, limits on agricultural and ancestral lands, and transparency in lease agreements, would be necessary to ensure balanced growth, Ms. Dela Cruz said.
