Provincial housing draws P30-B bet from Ayala Land

Ayala Land Inc. plans to launch P30 billion worth of residential projects in 2027, targeting stronger sales in provincial markets after cutting its unsold inventory by more than half over the past two years.

The property giant said Thursday it is shifting its focus to horizontal developments outside Metro Manila, where demand from end-users remains relatively resilient despite a sluggish residential property market.

The planned launches are expected to replenish its housing portfolio and support future sales, particularly in the P6-million to P15-million segment.

Ayala Land’s residential inventory fell to P99 billion as of September, its lowest level since 2017, from P214 billion at the end of 2024.

“We are pleased to have sustained gross take-up while maintaining discipline in managing inventory levels,” Ayala Land President and CEO Meean Dy said.

“Given where we are ending the year, with inventory levels below P100 billion, we are confident that we can return to the market and begin our launch program,” Dy added.

The P30-billion pipeline will consist entirely of horizontal developments, mostly outside Metro Manila, with a significant portion priced below P20 million.

Ayala Land Chief Commercial Officer Mike Jugo said the company is seeing stronger demand from actual homebuyers than property investors.

“We are seeing a greater proportion of end-users versus investors, and our programs are increasingly geared toward addressing the end-user market,” Jugo said.

The company also sees opportunities within its established estates, which account for 18 of its 20 best-performing residential projects.

Despite fewer launches, residential reservations reached P20.5 billion in the third quarter, bringing the nine-month total to approximately P67 billion.

Ayala Land launched P4.2 billion worth of horizontal projects as of September, including developments in Nuvali and Batangas, with another Avida project in Tarlac planned before year-end.

The expansion comes as Metro Manila’s condominium market continues to face excess supply.

Leechiu Property Consultants estimated unsold condominium inventory at around 80,000 units, equivalent to 28 months of supply, despite a 17-percent quarterly increase in take-up.

Ayala Land expects residential sales to remain broadly stable through the end of the year before ramping up project launches next year.

Meanwhile, Ayala Malls has expanded its Nuvali retail complex in Laguna to attract more international brands, capture growing consumer spending, and strengthen its foothold in southern Luzon.

The three-level expansion of the former Solenad mall adds retail and dining spaces, targeting global retailers seeking to establish a presence outside Metro Manila.