Extended land lease term to boost FDIs

CEBU, Philippines — The Philippines is poised to attract more foreign hospitality and manufacturing players—who bring significant capital and expertise—following the approval of measures extending the allowable land lease term for foreigners to 99 years.

The Philippine House of Representatives and Senate recently passed separate measures increasing the lease term from the current 75 years. These reforms also permit foreign investors to sublease properties, signaling a significant shift in the country’s property and investment landscape.

Real estate consultancy firm Colliers Philippines believes these reforms align with the government’s vision to position the Philippines as a competitive destination for foreign investments amid ongoing shifts in global supply chains.

According to Colliers, the legislative amendments are expected to catalyze growth in the property sector, particularly in industrial and leisure markets.

“Extending the lease term is crucial for foreign players to establish profitability and expand their footprint across the Philippines. It is a step in the right direction to attract investors leaving markets like China and Taiwan,” Colliers stated.

The influx of foreign players is anticipated to improve products and services for Filipino consumers by fostering a more competitive market.

Local developers also benefit from partnerships with globally recognized hospitality and manufacturing brands, enabling the development of world-class accommodations, convention centers, and industrial facilities.

These changes complement the government’s ongoing efforts to modernize infrastructure, including airport rehabilitation and expansion, to support its ambitious goal of attracting 12 million international tourists by 2028.