Over the last couple of decades, Colliers has seen the aggressive development of office and residential hubs outside Metro Manila.
As I highlighted in my previous columns, this growth bodes well for the Philippine economy, as more economic centers will rise and thrive. In our view, this means that progress will spread outside capital region. It is also an indication that property sector growth is more broad-based and not focused on a single location.
This is beneficial for the long-term growth of the real estate sector and the entire economy. More urban centers can contribute to progress and every region can maximize its full potential to create a more diverse expansion of the domestic economy.
Colliers Philippines believes that, as developers move towards regional centers like central Luzon, investors and end-users will have more options to choose from: condominiums, house and lot or lot only projects. In our view, this is a win-win for property firms, as they can capture a greater fraction of investors and even broaden their market, especially those expanding up north including Bulacan.
This pace of progress has been and will continue to be facilitated by an improving infrastructure and overall local government competitiveness, as measured by economic dynamism, innovation, quality of manpower and resiliency, among other factors.
Major property firms are expanding their options, as they see a strong revival of the country’s property market post-Covid 19 (Corona virus disease 2019). We are starting to see this revival in office, residential, retail, leisure, or industrial sector.
Property investment goes north
Metro Manila, of course, remains a major investment destination. The National Capital Region, after all, contributes nearly a third to the Philippines’ annual economic output. But developers are setting their sights on other urban areas—looking for potential development hubs with vast growth prospects.
In our view, this decentralization thrust is likely to be supported by the continued implementation of public works projects outside Metro Manila. These include airports, mass rapid transits, as well as cargo and passenger railways.
The country’s infrastructure push should guide the expansion plans of developers across the archipelago. The current administration has committed to invest more on public infrastructure, pledging to build, better, more. We see central Luzon, including Bulacan, being a major beneficiary of the national government’s commitment to allot five to six percent of the country’s GDP (gross domestic product) on infrastructure.
Colliers sees central Luzon as among the regions with vast potential in terms of property development. The region is among the fastest growing hubs in the country, contributing more than a tenth to the country’s economic output and growing by about 8.1 percent in 2022, faster than the Philippine GDP growth that year.
The region is one of the Philippines’ major industrial hubs, has skilled workforce and an affluent and continuously growing consumer base. It is one of the major sources of Filipino overseas workers and a top recipient of remittances, making it an attractive destination for property investors and end-users.
With national developers expanding outside Metro Manila, it is only natural for them to zero in on nearby regions, including Central Luzon and dive deeper into opportunities in key property destinations like Bulacan.
Bulacan’s meteoric rise
Residential developers and investors are starting to notice Bulacan’s potential as the next major property investment destination. Major infrastructure projects, including MRT-7 and the New Manila International Airport, are likely to redefine the Bulacan residential landscape.
Other major public works projects that should have a positive impact on the Bulacan property market include the North Luzon commuter railway, unified grand central station and arterial bypass toll road project.
Colliers sees more aggressive landbanking initiatives in Bulacan in the future as developers take advantage of the province’s major public works projects due completion in the next two to four years. This should set the stage for greater acquisition of parcels of developable land in the province and the eventual launch and development of more masterplanned communities.
Unlocking limitless opportunities
With a thriving property landscape post-Covid, Colliers projects the development of offices, malls, hotels and industrial parks outside of the capital region, including Bulacan. We see local government units competing for more investments. The competitive landscape should result in a more diverse Philippine property market, benefiting both investors and end-users.
Colliers believes Bulacan is ripe and ready for more property projects. This should excite both investors and property firms—national and even local or homegrown ones.
Exciting times, indeed, are ahead for the Bulacan property market. The opportunities are limitless.