I came across a forum post today on Facebook from a 32-year-old woman asking how to prepare for retirement in the future. Most of the replies mentioned insurance, savings, and retirement plans.
Valid din—but it made me reflect din on why my answer has always been real estate.
This was my reply:
Personally, I lean toward real estate—it’s something you can live in, earn from, and sell later as a hedge against inflation, while giving you long-term security.
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In the Philippines, inflation is very real. Inflation simply means money buys less over time. What ₱1,000 could buy you in groceries 10 years ago is very different from what it buys today. The same goes for bigger amounts—what ₱1M could buy 10–15 years ago is very different now.
Example — parking slots in BGC. Around ₱600k 15 years ago, now they’re selling for about ₱2.5–₱3M. And my favorite (and until now, still unbelievable) example: a ₱7–9M two-bedroom unit 10 years ago in BGC is now selling for around ₱40M for the same size, with turnover five years from now.
A hedge, in very simple terms, is protection and about protecting your purchasing power. It’s not just about money growing—it’s about making sure you can still afford the same things (or more) in the future.
That’s why people say real estate is a hedge against inflation. As the cost of living goes up, property values and rents usually go up too. So instead of your money losing value over time, it’s placed in something that moves with inflation. Nasasabayan ng real estate—and sometimes even nalalagpasan—ang inflation.
Cash sitting in the bank slowly loses its buying power—hindi nito nasasabayan ang pagtaas ng bilihin at property values. That’s why the idea of “hedge against inflation” really stuck with me when I first heard it in a talk by Sir Rex Mendoza. Favorite ko talaga yan. I didn’t fully get it then, but living it, seeing it over time, and being in real estate for 20 years made me believe it—even when, honestly, minsan hindi pa rin kapani-paniwala. Hehe.
So these are some of my reasons why I see real estate as a hedge against inflation in the Philippines:
• You can buy preselling properties on installment, often at 0% interest. Even if you’re paying relatively little or more monthly, you lock in today’s price. It’s also forced savings. Any appreciation over time works in your favor.
• Land appreciates as area expands. Areas that were once considered “far” eventually get roads, malls, schools—and prices follow. Being inside or near a masterplanned development often matters (BGC, Makati, Nuvali, Arca South, Parklinks, etc.).
• You can sell later. Sell a larger property and move into something smaller or bigger, getting cash when you actually need it. Because property acts as a hedge against inflation, you may still be able to buy again at current prices—unlike if the money just stayed in the bank.
• You’re holding an asset, not just money. Even memorial lots, for example, are much cheaper when bought early (I’ve written a full blog about this here).
When people ask how much they need for retirement, it really depends on their lifestyle now and the life they see for themselves later. Most of the time, kasama doon ang imagining where and how they want to live when they retire. Kasama talaga real estate. hehe
Reading her question sa forum felt like the right moment to finally put all of this into words.
