Latest Real Estate Laws in the Philippines: Key Updates for 2024
The Philippine real estate market is undergoing significant changes following the enactment of new laws designed to improve property valuation, taxation, and investment transparency. In June 2024, President Ferdinand R. Marcos Jr. signed into law the Real Property Valuation and Assessment Reform Act (RPVARA)—a landmark legislation that standardizes property valuation across the country.
Key Provisions of RPVARA (Republic Act No. 12001)
https://lawphil.net/statutes/repacts/ra2024/ra_12001_2024.html
1. Uniform Real Estate Appraisal Standards
RPVARA introduces a standardized property valuation system nationwide, aligning with international real estate appraisal standards. This change ensures fair and consistent property assessments while eliminating discrepancies in local valuations.
2. Market-Based Valuation for Real Property Tax
Property tax assessments will now be based on market value, enhancing tax collection efficiency and minimizing disputes over property tax computations.
3. Digitalization of Real Estate Records
The law mandates the creation of a Real Property Information System (RPIS)—a centralized digital database that enhances transparency and streamlines property tax administration at the local level.
4. Real Estate Tax Amnesty Program
To encourage compliance, RPVARA includes a two-year tax amnesty program for property owners with outstanding real estate taxes. This allows them to settle dues without penalties and interest.
How RPVARA Affects the Philippine Real Estate Market
According to Santos Knight Frank, a leading real estate consultancy firm, this law will make the Philippine real estate market more competitive and transparent by improving valuation accuracy and attracting more investors.
Industry leaders from the Chamber of Real Estate and Builders’ Associations Inc. (CREBA) have also praised the law, stating that it resolves long-standing issues in real estate assessment and could help reduce corruption in property valuation.
Upcoming Changes: Proposed Condominium Act Amendments
Beyond RPVARA, lawmakers are pushing for House Bill 10173, which proposes amendments to the Condominium Act. If passed, these changes will introduce new rules on:
- Condominium maintenance
- Redevelopment policies
- Dissolution of struggling condominium corporations
The goal is to address urban land scarcity, improve housing resilience, and ensure long-term sustainability for condominium developments.
Conclusion: The Future of Philippine Real Estate Laws
With the passage of RPVARA and the anticipated Condominium Act amendments, the real estate industry in the Philippines is becoming more transparent, efficient, and investor-friendly. These reforms are expected to: ✅ Increase investment opportunities
✅ Improve tax compliance
✅ Modernize property management
For real estate investors, property buyers, and developers, staying updated on these legal changes is crucial to navigating the evolving real estate landscape in the Philippines. 🚀
