Unearthing enormous potential of South Luzon commercial lots

The Calabarzon Region remains a major economic hub, supported by infrastructure developments, the proliferation of local and foreign manufacturing companies, and a favorable investment climate.

Data from the Philippine Statistics Authority (PSA) showed that Calabarzon’s economy grew by 5.6 percent in 2024, almost at par with the national growth of 5.7 percent. The region is also the second largest contributor to national economic output, next to the National Capital Region (NCR).

Manufacturing remains the primary driver of growth, with continued influx of industrial investments. The Cavite-Laguna-Batangas (Calaba) corridor, in particular, remains a thriving industrial hotspot in Southern Luzon, hosting companies engaged in automotive, food, semiconductors, and packaging.

In our view, the industrial sector helps raise the profile of the already premium and diverse property market in the Calaba region. Diversifying product offerings in the South has become the norm, particularly among developers’ masterplanned communities responding to growing demand for properties outside Metro Manila.

Horizontal remains hot

Horizontal projects remain attractive especially those in the Calaba corridor. Lot-only offerings in the region recorded an average price appreciation of 5 percent annually from 2016 to 2025.

Average lot prices in Cavite, in particular, reached P20,000 per sqm as of end 2025. The most expensive lots are priced from P30,000 to P60,000 per sqm a unit and these projects are recording impressive take-up. The lot only projects in the region, including those in Cavite, have average take up of between 89 percent and 96 percent.

The growing demand for horizontal projects in Southern Luzon should be supported by the completion of major infrastructure projects such as the North-South Commuter Railway, LRT-1 Cavite Extension, NLEx-SLEx Connector Road, and Cavite-Laguna Expressway, Bataan-Cavite Interlink Bridge, Cavite Bus Rapid Transit, Cavite-Batangas Expressway and the Nasugbu-Bauan Expressway.

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 in the Philippines, with a young and mobile workforce employed by manufacturing and outsourcing firms, attracting high value companies that continue to expand their footprint, and benefiting from the government’s push to enhance infrastructure connectivity.

The region also boasts cities and municipalities that are among the most competitive in the country. This continued dynamism is compelling property firms to explore projects that will enable them to corner demand from local and foreign businesses.

The continued inflow of remittances into Calabarzon, along with sustained population growth and rising disposable incomes, should help drive demand for retail spaces, hotels, retail strips, hospitals, and other institutional facilities, supporting take-up for commercial lots.

We recommend that investors start scouting for viable commercial lots being offered by private developers in the region, including those in Cavite, given the gargantuan potential of these properties for price appreciation.

Joey Roi Bondoc

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.