Colliers identifies Philippine property hotspots 

The Philippine economy's expansion is driving the need for more economic growth corridors outside Metro Manila, according to a report by Colliers International Philippines, a real estate services firm.

Colliers said the national government's massive infrastructure projects and decentralization efforts are creating new economic centers in Luzon, Visayas and Mindanao.

"Outside Metro Manila, Metro Cebu offers the largest office and residential stock," Colliers said. "Some of the tallest and most expensive structures can also be found in these two metropolitan areas."

The report focuses on thriving property markets outside Metro Manila and Cebu, discussing the economic potential of these areas and why property firms are actively pursuing development opportunities there. Colliers sees vast opportunities in major urban areas across central and southern Luzon, as well as in Visayas and Mindanao.

Davao's Booming Property Landscape

Colliers believes the entry of national developers in Davao City has paved the way for substantial development of integrated communities. The national government has lined up vital infrastructure projects in the city, which, upon completion, should further solidify Davao's attractiveness as a residential investment hub in Mindanao. These projects include the Davao Coastal Road, Davao City Bypass, and the expansion and modernization of Davao Airport.

"Hence, developers should continue with their landbanking initiatives and capitalize on the city's improving infrastructure backbone," Colliers said.

The report suggests that residential developers explore offering more resort- or leisure-themed projects to cater to the market. Colliers believes Davao's competitiveness as an outsourcing hub in Mindanao, backed by strong regional economic growth, should sustain the city's attractiveness for more residential projects.

Davao is also being positioned as a major meetings, incentives, conferences, and exhibitions (MICE) destination, which should attract more local and foreign hotel operators beyond 2024.

Iloilo: A Hub for Masterplanned Developments in Western Visayas

Iloilo's thriving business environment, partly driven by a constantly expanding outsourcing sector, continues to attract national developers to launch more office and residential projects in the city. While residential condominium developments are concentrated in Mandurriao, Iloilo's main business district, some developers are venturing into other districts for upscale and luxury residential projects.

"We encourage national players to take advantage of the city's growing investor and end-user market that is also enjoying growing disposable incomes," Colliers said.

Developers are also advised to consider the proximity of their projects to upcoming infrastructure projects. Major public works include the Ungka II Flyover, which will traverse Pavia, Hibao-an, and Buhang. The flyover is expected to reduce travel time from Iloilo City to Iloilo International Airport from 45 minutes to 20 minutes upon completion in 2025.

Iloilo's skilled workforce, quality infrastructure, and proactive local government in attracting investments are among the factors why major outsourcing firms continue to locate and expand in the city.

Cagayan de Oro: Opportunities in Northern Mindanao

Colliers believes Cagayan de Oro's competitiveness as an investment hub makes it one of the most attractive business locations in Mindanao. The city's strategic location makes it a key property investment destination in northern Mindanao. It is also on the radar of outsourcing firms, making it ideal for residential developments catering to outsourcing employees and overseas Filipino workers (OFWs).

The Laguindingan Airport will undergo expansion and modernization to become another international gateway. Colliers believes this will further entice national and local property firms to launch more residential projects in the city. The airport expansion should also attract more leisure investors, making Cagayan de Oro a city to watch in terms of hotel investments.

Bulacan's Property Market Takes Flight

Colliers sees Bulacan as a viable residential investment option due to its proximity to Metro Manila. The completion of the Metro Rail Transit Line 7 (MRT-7) and the New Manila International Airport is expected to solidify Bulacan's position as a major residential hub outside the capital region and in Central Luzon.

The MRT-7, now nearly 70% complete, is expected to be operational by 2028. The railway project aims to reduce travel time from San Jose del Monte, Bulacan to North Avenue, Quezon City from three hours to 35 minutes, with a capacity of up to 800,000 commuters daily. The New Manila International Airport, also targeted for completion in 2028, will help decongest Ninoy Aquino International Airport (NAIA).

Colliers anticipates more aggressive landbanking initiatives in Bulacan as developers capitalize on major public projects slated for completion in the next two to four years. This is expected to set the stage for the acquisition of more developable land and the launch of more masterplanned communities in the province.