Batangas: Demand for horizontal is unequivocal
Batangas is emerging as a key beneficiary of the Cavite-Laguna-Batangas (Calaba) corridor’s sustained economic growth, supported by its role within the country’s leading industrial region and reinforced by significant infrastructure investments.
With manufacturing playing a pivotal role in driving Southern Luzon’s economic output, Batangas has seen rising multinational investments, expanding industrial estates, and improving connectivity to Metro Manila. These help strengthen the province’s competitiveness and fuel spillover demand in the residential sector.
Sustained regional economic growth
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 the national economic output, next only to the National Capital Region (NCR).
Batangas is part of Calabarzon, whose economy is driven largely by industry, which accounts for nearly half of regional output. Over the years, the influx of multinational exporters and manufacturers has reinforced Southern Luzon’s role as the country’s main industrial corridor.
Infra to raise Batangas’ competitiveness
The expansion of manufacturing activities requires better infrastructure.
Strong connectivity to Metro Manila allows the Calaba corridor to move goods efficiently to Manila Port. This reinforced its role as the country’s major industrial hub, enticing national property firms to develop industrial parks and complementing residential projects.
We are optimistic that the major infrastructure projects in the pipeline will further support the expansion of industrial activities in Southern Luzon, particularly Batangsa. These upcoming projects include SLEx TR-4, Nasugbu-Bauan Expressway (NBEx) and the Cavite -Batangas Expressway (CBEx).
Other projects likely to benefit peripheral areas include the LRT-1 Cavite Extension, North-South Commuter Railway (NSCR), NLEx-SLEx Connector Road, Cavite-Laguna Expressway (CALAx), and the Bataan-Cavite Interlink Bridge.
Demand for industrial spills over to residential
In Calaba, Batangas remains a thriving industrial hotspot. Most locators in Batangas are manufacturing companies particularly engaged in electronics, food and beverage, and home appliances.
Over the past 12 months, Colliers saw manufacturers of printers, semiconductors, medical instruments, air fresheners, and molded parts taking up industrial space in Batangas.
Among the big-ticket manufacturing investments include Taiwan’s Aromate Industries which is spending $4.3 million for the construction of a 15,300-sqm facility, while Singaporean firm MNEX will set up a P180-million plant, which will manufacture molded parts for various industries.
The expansion of industrial activities in Batangas should also be supported by new and expanding industrial parks that are likely to be completed from 2026 to 2028.
Growing appetite for horizontal
Colliers believes that the continued interest in Batangas industrial parks will spill over to the residential sector, particularly for house-and-lot (H&L) and lot-only developments.
Horizontal projects in Batangas remain attractive. As of end 2025, average take-up of H&L projects in the province reached 89 percent, heavily driven by the economic and affordable projects (P580,000 to P3.2 million), particularly those located in Lipa, Sto. Tomas, and Tanauan. These are some of the areas that house the expansive industrial parks in Batangas.
Among provinces in Luzon, Batangas currently has the largest stock of residential lots at about 36,000 units, posting an absorption of 89 percent as of end 2025.
Lot-only developments are also recording formidable price appreciation. From 2016 to 2024, prices of residential lots in the province rose by an average of 11 percent annually.
Average lot prices in Batangas reached P19,000 per sqm as of end 2024. The most expensive lots are priced at about P30,000 to P50,000 per sqm, and these projects recorded impressive take-ups of between 50 and 100 percent.
