The Private Sector Advisory Council Infrastructure Sector (PSAC-Infra) has recommended measures to help manage property costs, expand access to affordable housing, and sustain jobs and investments as the real estate sector faces higher construction and financing costs.

During a special meeting with President Ferdinand Marcos Jr. at Malacañang on September 22, PSAC-Infra discussed recommendations covering real property taxation and housing affordability, along with updates on artificial intelligence and investment policies.

Real estate remains an important part of the Philippine economy. Data presented by PSAC-Infra showed that every ₱1 spent on real estate generates an estimated ₱3.44 in economic output, supporting construction, banking, retail, logistics, BPO and tourism. Construction alone employs about 4.7 million Filipinos, or 9.6% of the country's workforce.

PSAC Lead Convenor and Aboitiz Group President and CEO Sabin Aboitiz underscored the importance of close government-private sector collaboration in addressing pressures facing real estate and housing, with policies that consider their impact on Filipino families, jobs and investment. Aboitiz delivered the opening remarks during the special meeting.

One of the Council’s key recommendations is to give property owners and local governments more time to adjust to the Real Property Valuation and Assessment Reform Act (RPVARA). PSAC-Infra proposed moving the start of implementation by four years to 2031, extending the real property tax amnesty by four years, and adopting a phased transition that would cap real property tax increases at 6% annually during the first three years.

The Council also recommended an Urban Housing Affordability Program to help address the country's estimated 3.7-million-unit housing backlog. Under the proposal, developers could offer existing higher-priced, ready-for-occupancy condominium units at substantial discounts in exchange for incentives or credits toward balanced housing requirements. This could give more families access to urban housing while helping move existing housing inventory.

“The industry is committed to continue supporting the government’s socialized housing program and we see a great opportunity to partner with DHSUD and other government agencies in providing more affordable housing for our fellow Filipinos”, said Ayala Corporation Chief Social Infrastructure Officer Paolo Borromeo.

PSAC-Infra further recommended accelerating the adjustment of socialized housing price ceilings within 2026, ahead of the scheduled December 2027 review, amid rising construction costs. It also proposed further government-private sector consultations on alternative ways for developers to meet balanced housing requirements.

The recommendations come as real estate's contribution to GDP stood at 5.8% in the first quarter of 2026, compared with the 6.65% pre-pandemic average in 2018 and 2019. The Council noted that slower project launches and construction could affect employment, housing delivery and local government revenues.

The meeting also covered the proposed National AI Implementation Task Force, aimed at responding to AI-related risks and opportunities, particularly for the IT-BPM workforce. PSAC-Infra also noted the government's lifting of the PEZA moratorium for IT centers and IT parks in Metro Manila.

Through these recommendations, PSAC seeks to support a balanced approach that considers housing affordability and manageable property costs while sustaining investment, construction and jobs across the economy.

‍