South Luzon solidifies role as PH’s primary industrial and manufacturing hub

Southern Luzon remains the country’s leading industrial hub, supported by expanding manufacturing activity, improving infrastructure, and sustained demand from multinational locators, according to real estate consultancy Colliers Philippines.

The Cavite-Laguna-Batangas (Calaba) corridor accounted for about 15 percent of national gross domestic product (GDP) in 2024, underscoring its role as a major economic driver. The region also benefits from steady remittance inflows from overseas Filipino workers, which continue to support demand across property segments including residential, retail, leisure, and industrial.

Colliers noted that the Calaba corridor’s accessibility to Metro Manila and Manila Port has cemented its viability as a base for exporters and manufacturers. Multinational firms have expanded their operations in the area, prompting property developers to invest in new industrial parks alongside residential and commercial projects.

Recent expansions include VS Industry Philippines in LISP 3, Figaro in Laguna Technopark, and Wenshan Electronics in LISP 2. EMS Group is also scaling up its semiconductor hub in Laguna and pursuing a joint venture with a European firm for a USD800-million electronic products plant in Batangas. Kolin has acquired land for warehousing in Cavite, while Fujifilm and Printwell are expanding in Carmelray Industrial Park and LIMA Estate, respectively.

Two newly proclaimed ecozones in Cavite—Gateway Business Park and NDC Industrial Estate—expect four new locators in sectors such as metalworking, renewable energy, and custom electronics. Meanwhile, Aboitiz InfraCapital’s LIMA Estate reported 13 companies building facilities that could generate up to 7,000 jobs, spanning industries from automotive parts to solar panel components.

Colliers said infrastructure projects such as the North-South Commuter Railway, Cavite-Laguna Expressway, and LRT-1 Cavite Extension are expected to reinforce Southern Luzon’s attractiveness to investors. These developments have also spurred aggressive landbanking among property developers anticipating sustained industrial demand.

While industrial vacancy in the corridor rose to 16.9 percent by mid-2025 from 14.3 percent a year earlier due to new supply, Colliers pointed out that fresh take-up by manufacturers highlights continued interest in the region.

“Southern Luzon continues to attract global manufacturing players due to its skilled workforce, improving infrastructure, and availability of master-planned communities,” Colliers said, adding that the evolution of the Calaba corridor’s industrial sector is reshaping the broader property market.