Industrial expansion strengthens Luzon’s role as economic growth driver

Central and Southern Luzon are emerging as the Philippines’ most dynamic industrial corridors, with new investments and infrastructure projects positioning the regions as critical drivers of economic growth.

Latest data from the Philippine Statistics Authority show that Central Luzon and CALABARZON accounted for roughly a quarter of the country’s gross domestic product in 2024, underscoring their importance as hubs for both services and industry. Analysts note that sustained demand from local and foreign manufacturers continues to fuel industrial expansion, supported by the rollout of major transport and logistics infrastructure.

Colliers Philippines projects more than 1,200 hectares of new industrial land supply will be delivered across the two regions from 2025 to 2028, with developers expanding estates to accommodate a wave of high-value locators. Firms engaged in electronics, semiconductors, automotive parts, packaging, and renewable energy components are among those establishing operations.

Central Luzon is expected to account for nearly two-thirds of new supply, driven by projects in Pampanga, Tarlac, Bataan, and Subic. Among the developments is the recently launched TARI Estate in Tarlac, designed as a mixed-use estate with industrial, residential, retail, and hotel components. The project mirrors the approach of existing master-planned communities such as LIMA Estate in Batangas, which has reported 13 new companies building facilities that could generate up to 7,000 jobs.

Meanwhile, the CALABARZON area remains a preferred location for global manufacturers. Firms in sectors ranging from semiconductors to consumer appliances have announced new factories in Cavite and Batangas, sustaining the region’s reputation as the country’s traditional industrial base.

Infrastructure upgrades are also expected to reinforce Luzon’s industrial growth trajectory. In Central Luzon, the modernization of Clark International Airport, construction of the Subic-Clark-Manila-Batangas cargo railway, and development of the Bulacan International Airport are projected to improve connectivity for exporters. In the south, projects such as the Cavite-Laguna Expressway, North-South Commuter Railway, and Cavite-Batangas Expressway aim to ease mobility for both goods and workers.

Industry observers point out that the arrival of higher-value manufacturers, including steel and fiber producers as well as firms in the creative economy such as film and digital production, reflects the evolving profile of Luzon locators. These developments, they add, are expected to generate spillover demand for housing, office space, retail, and hospitality assets.

With strong developer participation and ongoing infrastructure expansion, Central and Southern Luzon are seen to remain focal points of industrial activity in the Philippines, shaping a more diverse and inclusive property market that supports long-term economic growth.