Unlocking the gargantuan potential of commercial lots
South Luzon has tremendous potential for economic and property expansion.
It is one of the fastest growing regions of the Philippines; has a young and mobile workforce employed by manufacturing and outsourcing firms; attracts high-value firms that continue to expand footprint; and is a major beneficiary of the government’s push to enhance infrastructure connectivity. The region also boasts of cities and municipalities that are among the most competitive in the country.
Overall, the region undeniably fosters a favorable investment climate making it a preferred destination of Filipino and foreign companies.
Thus, over the past few years, we have seen developers aggressively diversifying their product offerings in the region.
Vertical and horizontal projects continue to proliferate given the strong investor and end-user demand, while industrial parks and modern warehouses are being launched and developed. The region is also a viable office location given the competitiveness of its workforce.
Brisk economic activities, growing population
The continued dynamism of South Luzon’s property landscape is compelling property firms to further explore other projects that will enable them to corner demand from local and foreign businesses.
Given the continued inflow of remittances into the region, we see Calabarzon Region becoming a retail hub. This should help drive demand for retail spaces, including shophouses in the region. We recommend that investors start scouting for viable commercial lots being offered by private developers in the region.
With the region’s rising population and growing purchasing power, Colliers sees the need for more institutional facilities such as schools and hospitals. The demand for these facilities should also help lift the demand for commercial lots.
The allure of leisure
The Cavite-Laguna-Batangas (Calaba) corridor, in particular, is a popular destination among Metro Manila workers and residents.
The area also attracts major meetings, incentives, conferences, and exhibitions (MICE) events that’s why we see it becoming a hub for more hotels, convention centers, and other accommodation and MICE facilities in the years to come.
Commercial lots being offered in the region are thus viable options for developers and leisure brands planning to build more hotels and MICE facilities.
Aside from local and foreign travelers, we project a greater demand for accommodation facilities beyond 2025 especially given the influx of foreign executives working for multinational manufacturing firms located in the region’s bustling industrial parks.
This corridor is seen to remain a hub for business and leisure (bleisure) travelers looking for quality accommodation.
Thriving manufacturing sector
A major driver of the region’s economic growth is its manufacturing sector. In fact, the industrial sector accounted for 50 percent of the region’s economy in 2023. This indicates that manufacturing is one of the South Luzon region’s major pillars and long term growth will hinge on this subsegment.
The Calaba corridor continues to attract major investors that export electronic products and other high-value manufactured items to major Asian and western economies. Japanese firms continue to gravitate towards the south and this has been enticing property firms to expand their residential and industrial footprint.
Given the gargantuan potential of the region’s manufacturing sector, we see greater potential to build modern warehouses and this should support the rising demand for sizable commercial lots.
Booming economy a boon for commercial lot developments
Colliers believes that the Calaba corridor’s property market will only continue to expand. Hopefully, a cargo rail will also be lined up in the near future, as improving infrastructure connectivity is seen to further boost the competitiveness and attractiveness of South Luzon’s property market, including its industrial subsegment.
All these efforts should be complemented by the government’s push to ease business registration processes as this is an important step in raising the Philippines’ competitiveness as an industrial hub in Southeast Asia.
These factors will definitely contribute to the region’s thriving economy. These should also encourage developers to continue differentiating in the market and complement their masterplanned communities with projects that are likely to capture the region’s expanding business activities.
Hence, aside from the usual office, residential lot only, house and lot, and condominium projects, we also expect firms to launch expansive commercial lots to cater to the expansion plans of businesses operating within the region.
For feedback, please email joey.bondoc@colliers.com
