How the 2025 Philippine Elections Could Affect Property and Facilities Management: Regulatory and Market Outlook

Introduction

The 2025 Philippine midterm elections, held on May 12, 2025, represented a pivotal moment in the nation's political landscape, influencing not only governance but also key economic sectors such as real estate and facilities management. Under the administration of President Ferdinand Marcos Jr., these elections determined the composition of the Senate, House of Representatives, and numerous local government positions. As of August 2025, with election results certified and new officials assuming office, the outcomes have begun to shape policy directions that could profoundly impact property development, management, and related legal frameworks.

This article examines the potential effects of these elections on property and facilities management from a regulatory and market perspective, grounded in Philippine legal principles. It draws on constitutional provisions, existing statutes like the Property Registration Decree (Presidential Decree No. 1529), the Urban Development and Housing Act (Republic Act No. 7279), and emerging policy trends. While the full ramifications may unfold over the coming years, early indicators suggest shifts in infrastructure priorities, taxation, environmental compliance, and investor sentiment. Property owners, developers, and facilities managers must navigate these changes to mitigate risks and capitalize on opportunities.

Overview of the 2025 Elections and Political Context

The 2025 midterms were characterized by a contest between administration-backed coalitions, such as the UniTeam alliance, and opposition groups emphasizing anti-corruption, economic reform, and social justice. Key issues included inflation control, infrastructure acceleration, and climate resilience— all of which intersect with property and facilities management.

Administration allies secured a majority in the House of Representatives, ensuring continuity in pro-business policies, while the Senate saw a more balanced outcome with independents and opposition senators gaining seats. This mixed result could lead to legislative gridlock on contentious bills but also foster bipartisan efforts on economic recovery post-COVID-19 and amid global uncertainties.

From a legal standpoint, the Philippine Constitution (1987) vests Congress with authority over taxation, land use, and environmental laws, while local governments handle zoning and building permits under the Local Government Code (Republic Act No. 7160). Election outcomes influence the enactment of new laws or amendments, potentially altering the regulatory environment for property stakeholders.

Regulatory Impacts on Property and Facilities Management

Elections often herald regulatory shifts, and the 2025 results are no exception. Below, we outline key areas where changes could materialize, based on campaign promises and post-election legislative agendas.

1. Land Use and Zoning Regulations

Potential Changes: With a focus on sustainable development, newly elected local officials may revise zoning ordinances to prioritize green spaces, mixed-use developments, and disaster-resilient structures. For instance, opposition-led local governments in urban areas like Metro Manila could enforce stricter height limits or setback requirements to address overcrowding and flood risks, aligning with the National Land Use Act proposals.
Impact on Facilities Management: Facilities managers may face increased compliance costs for retrofitting buildings to meet new standards, such as energy-efficient designs under the Philippine Green Building Code. Non-compliance could result in penalties under Republic Act No. 9514 (Fire Code) or administrative sanctions from local building officials.
Legal Considerations: Property owners should monitor amendments to Republic Act No. 7279, which governs urban housing. If administration allies push for deregulation to spur development, this could ease permitting processes but heighten litigation risks from community displacements.

2. Taxation and Fiscal Policies

Potential Changes: The elections could accelerate tax reforms targeting real estate, such as adjustments to the Real Property Tax Code (Presidential Decree No. 464). A Senate with stronger opposition voices might advocate for progressive property taxes on idle lands to discourage speculation, while pro-administration forces could extend incentives for Real Estate Investment Trusts (REITs) under Republic Act No. 9856.
Impact on Property Management: Higher taxes on commercial properties could squeeze margins for facilities managers, necessitating cost-optimization strategies like outsourcing maintenance or adopting smart technologies. Conversely, tax breaks for eco-friendly upgrades could incentivize investments in sustainable facilities.
Legal Considerations: Disputes over tax assessments may rise, invoking remedies under the Tax Code (Republic Act No. 8424, as amended). Managers should prepare for audits and appeals through the Bureau of Internal Revenue or local assessors.

3. Environmental and Sustainability Regulations

Potential Changes: Climate change was a campaign flashpoint, with elected officials likely to strengthen enforcement of the Climate Change Act (Republic Act No. 9729) and the Ecological Solid Waste Management Act (Republic Act No. 9003). Post-election, there may be mandates for carbon footprint reporting in large facilities or incentives for renewable energy integration.
Impact on Facilities Management: This could require upgrades to waste management systems, water conservation measures, and energy audits, increasing operational expenses but potentially reducing long-term utility costs. In coastal properties, stricter coastal management rules under Republic Act No. 8550 (Fisheries Code) could affect development plans.
Legal Considerations: Violations may lead to environmental compliance certificates being revoked by the Department of Environment and Natural Resources, triggering civil liabilities or criminal charges. Facilities managers should conduct due diligence under the Philippine Environmental Impact Statement System (Presidential Decree No. 1586).

4. Infrastructure and Public-Private Partnerships (PPPs)

Potential Changes: The continuation of the Build-Better-More program, an evolution of the previous Build-Build-Build initiative, depends on congressional funding. A supportive House could allocate more for roads, ports, and utilities, enhancing property values in connected areas.
Impact on Property Management: Improved infrastructure may boost occupancy rates in commercial and industrial facilities but disrupt operations during construction. PPPs under Republic Act No. 6957 (as amended) could open opportunities for private sector involvement in facility upgrades.
Legal Considerations: Contracts must comply with procurement laws to avoid graft charges under Republic Act No. 3019 (Anti-Graft Law). Disputes may arise over eminent domain, governed by Republic Act No. 10752 (Right-of-Way Act), affecting property acquisitions.

5. Labor and Safety Regulations

Potential Changes: Election rhetoric on worker rights could lead to amendments in the Labor Code (Presidential Decree No. 442), emphasizing occupational safety in facilities management. Minimum wage hikes or enhanced benefits for janitorial and maintenance staff may follow in regions with labor-friendly local governments.
Impact on Facilities Management: Labor costs could rise, prompting automation or contractual arrangements, but improving employee retention in a competitive market.
Legal Considerations: Compliance with Republic Act No. 11058 (Occupational Safety and Health Standards) is crucial to avoid Department of Labor and Employment penalties or tort claims.

Market Outlook for Property and Facilities Management

Beyond regulations, the elections influence market dynamics through economic confidence and investment flows.

1. Investor Sentiment and Market Stability

The perceived stability from administration majorities could attract foreign direct investment in real estate, particularly in emerging hubs like Cebu and Davao. However, any post-election controversies, such as disputes over vote counts, might cause short-term volatility in property prices.
Facilities management firms may see demand surge for outsourced services in a growing economy, projected at 6-7% GDP growth in 2025-2026, but inflation pressures could erode profits.

2. Sector-Specific Trends

Residential and Commercial Real Estate: Urban migration and hybrid work models could sustain demand, but regulatory hurdles might slow new projects. REIT performance may improve with tax incentives.
Industrial and Logistics: E-commerce growth, bolstered by infrastructure, favors warehouse management, though supply chain disruptions from global events remain a risk.
Hospitality and Retail: Tourism recovery under pro-business policies could revitalize facilities, but environmental regs may limit expansions.

3. Risk Factors

Geopolitical tensions, natural disasters, and global recessions amplify election-induced uncertainties. Property insurance premiums may rise, impacting facilities budgets.

Legal Strategies for Mitigation and Adaptation

To navigate these changes, stakeholders should:

Engage legal counsel for regulatory compliance audits.
Participate in public consultations on proposed bills.
Diversify portfolios across regions to hedge against local policy shifts.
Leverage alternative dispute resolution under the Alternative Dispute Resolution Act (Republic Act No. 9285) for contract disputes.

Conclusion

The 2025 Philippine elections, while maintaining broad policy continuity, introduce nuances that could reshape property and facilities management. Regulatory enhancements in sustainability and taxation, coupled with a cautiously optimistic market outlook, present both challenges and opportunities. As the new Congress convenes, vigilant monitoring of legislative developments will be essential. Ultimately, adaptive strategies rooted in Philippine law will determine success in this evolving landscape. Stakeholders are advised to consult updated jurisprudence and engage with industry associations like the Philippine Association of Realty Appraisers for tailored guidance.