Pag-IBIG drives record growth in Philippine real estate

With home prices and borrowing costs weighing heavily on Filipino households, Pag-IBIG Fund has played a pivotal role in sustaining the country’s housing market.

In 2025, the government-run corporation disbursed a record P140.54 billion in housing loans, up eight percent from P129.73 billion in 2024. This supported 90,727 members who acquired residential properties or financed construction, renovation and improvement projects.

Expanded 4PH accelerates rollout

A key driver behind the surge is the Expanded Pambansang Pabahay para sa Pilipino Program (Expanded 4PH), the flagship initiative of the Department of Human Settlements and Urban Development (DHSUD). Speaking at the National Housing Expo in October 2025, President Ferdinand R. Marcos Jr. highlighted Pag-IBIG’s role in expanding homeownership opportunities nationwide, while DHSUD Secretary Jose Ramon P. Aliling, chair of the Pag-IBIG Fund Board of Trustees, cited measurable gains in providing affordable credit.

Under Expanded 4PH’s subsidized packages, Pag-IBIG funded 7,056 socialized housing units worth P7.63 billion at three percent annual interest for the first five years, extendible for another five years for qualified borrowers. An additional 4,811 homes valued at P6.2 billion were financed under a promotional 4.5 percent rate for loans up to P1.8 million. These programs lower monthly payments to around P4,005 for house-and-lot units priced up to P950,000 and P8,432 for condominiums up to P2 million.

The Early Bird Promo offers the first 30,000 qualified applicants the three percent rate for the first 10 years, making homeownership more accessible. Meanwhile, the 4.5 percent promotional rate reduces a P1.8 million loan’s monthly amortization to P9,120 over 30 years, compared with P11,083 at the standard 6.25 percent.

Support beyond acquisition

Pag-IBIG also backs property upgrades through its Home Improvement Loan program, allowing members to borrow up to P300,000 repayable within five years at a streamlined three percent promotional rate for the first 10,000 approved borrowers.

Chief executive officer (CEO) Marilene C. Acosta emphasized that Pag-IBIG’s programs aim to assist minimum wage earners and middle-income households, reinforcing its role as the country’s leading home mortgage institution.

Market resilience amid headwinds

The broader real estate sector continues to adjust to higher interest rates, inflation and an oversupply of condominiums in some city centers. Yet demand remains strong, particularly in established business districts such as Makati, Bonifacio Global City and Ortigas Center. Growth in technology, healthcare, logistics and tourism is also shaping new residential catchments, while government measures allowing foreign entities to lease land for up to 99 years have encouraged global hotel investments.

2026 outlook 

The sustained rise in loan releases signals enduring appetite for property ownership. Secretary Aliling said Pag-IBIG plans to deepen partnerships with developers and housing stakeholders in 2026 to accelerate loan approvals and property turnover, aligning with national housing production goals.