The Impact of Climate Change on Real Estate Ownership in the Philippines
How Rising Seas and Storms Are Changing the Way We Buy and Own Property
Climate change is no longer a distant threat — it’s here
It’s reshaping the real estate landscape in the Philippines. From rising sea levels to more frequent and extreme weather events, property owners and investors are now facing new risks that were once unimaginable. Whether you’re a homeowner, a land developer, or a prospective buyer, understanding how climate change is impacting real estate is crucial in making informed and future-proof decisions.
Rising Sea Levels: The Slow but Certain Threat
The Philippines, being an archipelago with over 7,000 islands, is one of the countries most vulnerable to sea level rise. According to the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA), sea levels in the country are rising at a rate of about 5.7 millimeters per year, which is faster than the global average.
What does this mean for real estate?
• Coastal properties — especially those in low-lying areas like Metro Manila’s Bay Area, parts of Cavite, Bulacan, and even tourist havens like Boracay and Palawan — are now at risk of flooding, soil erosion, and long-term land loss.
• Properties in these areas may lose value over time, not just because of physical risk but also due to higher insurance premiums, maintenance costs, and growing buyer hesitation.
Extreme Weather Events: Floods, Typhoons, and Heatwaves
Typhoons in the Philippines are getting stronger. Just in the past decade, the country has experienced devastating storms like Yolanda (Haiyan), Rolly (Goni), and Odette (Rai), each causing billions of pesos in damages to homes and infrastructure.
For real estate:
Frequent flooding affects both rural and urban areas, damaging properties and deterring future buyers. Even newly developed subdivisions can be affected if built on flood-prone zones without proper drainage or elevation planning.
Heatwaves and rising temperatures also impact quality of life and livability, pushing buyers to reconsider properties in overly congested or poorly ventilated urban areas.
As a result, there’s an increasing shift in demand toward elevated, inland, and climate-resilient properties, often located in higher-altitude provinces or well-planned townships with integrated disaster risk reduction systems.
Shifting Buyer Preferences and Developer Responsibilities
Today’s buyers — especially younger generations — are becoming more climate-aware. They’re asking critical questions:
Is this area flood-prone?
Does this development use sustainable materials?
Is there access to renewable energy or green spaces?
Real estate developers are being challenged to respond by:
Integrating green architecture, such as rainwater harvesting systems, solar-ready homes, and permeable pavements.
Prioritizing resilient site selection, using hazard maps and climate data in choosing where to build.
Securing compliance with LGU policies and national mandates on disaster-resilient infrastructure.
Some major developers are already marketing “climate-resilient communities” as a key selling point — a trend that’s expected to grow stronger in the coming years.
Investor Decisions: Profit vs. Preservation
From an investment standpoint, properties in climate-risk zones may still be profitable in the short term, especially for tourism or commercial use. But for long-term stability, investors are increasingly eyeing locations with:
Stable topography
Reliable access to utilities even during disasters
Low climate-related insurance costs
In the future, climate resilience may become a standard metric alongside traditional valuation factors like location, amenities, and accessibility.
Conclusion: A New Real Estate Reality
Ang climate change ay hindi lang issue ng kalikasan — issue na rin ito ng ownership, investment, at survival. Hindi na sapat na tanungin kung maganda ang location o mataas ang potential ng isang property. Ang dapat na ring itanong ngayon ay: ligtas ba ito sa epekto ng pagbabago ng klima?
Para sa mga real estate professionals, ito na ang panahon para maging mas responsable at proactive. Hindi lang ito tungkol sa pagbebenta ng bahay — ito ay tungkol sa pagbebenta ng buhay na ligtas, kinabukasang sigurado, at puhunang matatag.
Tandaan, habang umaangat ang tubig, dapat sabayan natin ito ng pag-angat ng ating kaalaman at pananaw sa pagbili at pag-aari ng lupa sa Pilipinas.
See our latest blog about – The Ethics of Real Estate Ownership: Balancing Profit and Social Responsibility
