A big change in Philippine real estate laws is changing the investment scene. On September 3, 2025, Republic Act No. 12252 was signed. This law allows foreign investors to lease land in the Philippines for up to 99 years. This is a major shift that is expected to boost long-term investments in real estate, infrastructure, and tourism.

A Game-Changer for Foreign Investors

Historically, the Philippines has been one of Asia’s strictest markets for foreign land access. It limits leases to 50 years, with a one-time 25-year renewal. This 50+25 setup created uncertainty, particularly around the ambiguous renewal clause, deterring many long-term projects from breaking ground.

With the new law, foreign investors can now sign uninterrupted 99-year lease agreements. This allows them to have long-term use of land without changing the country's rules on land ownership. The result: enhanced security, stronger financing opportunities, and renewed global interest in Philippine property.

Making Long-Term Projects Bankable

One of the most significant implications of the reform is its ability to unlock project financing. With longer leases, investors can get better lending terms. Banks are more willing to finance big projects when lease rights can be used as collateral. This enhances the viability of projects that previously struggled under shorter tenures.

The 99-year term helps support long-term projects. These include master-planned communities, hotels, and infrastructure facilities. Many of these projects take decades to develop, run, and make a profit.

A Boost for Tourism and Township Development

The tourism sector will benefit immediately. In early 2025, international visitor spending is rising. This increases the demand for resort developments and large hotels. Long leases offer the security needed to build and run hotels, resorts, and tourism areas that last for generations.

Similarly, mixed-use townships—which blend residential, retail, commercial, and recreational components—often require long planning and construction horizons. The new law gives global master developers the assurance to commit to these transformative, long-term developments.

Supporting Industrial and Infrastructure Growth

The longer lease term will help growth in several areas. This includes industrial areas, logistics parks, and digital infrastructure. It goes beyond just hospitality and townships. Facilities like data centers, airports, and transport terminals need stable, long-term occupancy to attract investment. A 99-year lease gives developers the certainty they need to pursue these important assets.

Leveling the Playing Field in Southeast Asia

The reform also brings the Philippines more in line with regional peers such as Singapore, Hong Kong, and the Maldives, where 99-year leaseholds are already standard. These markets have long attracted institutional capital from global firms like Blackstone and CapitaLand—capital the Philippines now aims to compete for.

The Philippines has a young population and a good location. However, it has had trouble attracting big, long-term foreign real estate investments. This is because of strict lease terms. This new law helps fix that problem.

Why It’s a Win-Win

The law allows Filipino landowners to keep full ownership of their properties. Instead of selling land, they can now earn money through long-term leases. This helps them keep the land for future generations. Investors also benefit from this system. They have the time and clarity to carry out their plans and recover their money. This creates a partnership model instead of just a transactional one.

The law allows Filipino landowners to keep full ownership of their properties. Instead of selling land, they can now earn money through long-term leases. This helps them keep the land for future generations. Investors benefit too, as they have the time and clarity to carry out their plans and recover their money. This creates a partnership model instead of just a transactional one.

Looking Ahead

This new law is more than just a legal change. It shows the world that the Philippines is ready for bigger, long-term investments. By extending land lease terms to 99 years, the country is making itself more appealing to foreign investors. At the same time, it keeps ownership in Filipino hands.

As the real estate sector grows, this change is expected to create many opportunities. These include hospitality, industrial, infrastructure, and township development. This will help build a strong foundation for economic growth, job creation, and lasting value.

Looking to explore long-term property investment opportunities in the Philippines? Our Investment Sales team can help identify viable land assets, structure compliant transactions, and support due diligence for foreign and institutional investors. Email us at inquire@leechiu.com to get started.