OVER THE YEARS, Colliers Philippines has seen the proliferation of more office and residential hubs outside Metro Manila. In our view, this bodes well for the Philippine economy as more economic centers rise. This means that economic development is also spreading outside Metro Manila and indicates that property sector growth is broad-based, rather than focused on a single location.
Colliers believes that this pace of progress has been facilitated by improving infrastructure and overall local government competitiveness, as measured by economic dynamism, innovation, quality of manpower, 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.
Undeniably, Metro Manila remains a major investment destination, but developers are setting their sights on other urban areas. In our view, this decentralization thrust is likely to be supported by the continued implementation of public projects outside Metro Manila. These include airports, bus rapid transit systems, as well as cargo and passenger railways. Overall, the country’s infrastructure push should guide the expansion plans of developers across the country.
The infrastructure projects implemented by previous administrations have dictated developer strategies. The implementation of key infrastructure projects nationwide has provided access to properties that could be redeveloped into mixed commercial, residential, hotel/leisure, and industrial estates. These projects also helped the government bring economic opportunities to areas outside the country’s capital. Due to road projects, for instance, business opportunities have spilled over to nearby areas such as Cavite, Laguna, Bulacan, Tarlac, and Pampanga in Luzon.
In the Visayas, Cebu remains the primary property investment hub, but other locations are starting to catch up, with the likes of Iloilo and Bacolod cornering substantial investments from national and homegrown developers. In Mindanao, Davao remains the most attractive property investment destination.
Overall, Colliers Philippines believes that developers will continue to venture into residential projects in second- and third-tier cities and municipalities across the country, where demand comes from local end-users, as well as those based in Manila who are looking to buy second homes in their home provinces. The markets may be smaller than Metro Manila, but they are more stable in terms of end-user housing demand.
DEMAND FOR HORIZONTAL PROJECTS IS UNEQUIVOCAL
The tepid pre-selling condominium demand in Metro Manila is prompting developers to launch more horizontal projects outside the capital region. Colliers has observed steady demand for horizontal projects, particularly house-and-lot (H&L) and lot-only developments.
H&L developments remain popular, especially in the provinces, due to the availability of affordable units given the relatively cheaper developable land. Most overseas Filipino workers (OFWs) from the provinces also prefer larger spaces for their families.
Overall, the H&L market, particularly in major urban areas outside the capital, should be propelled by sustained growth in remittances, a portion of which will continue to finance the amortization of OFWs’ properties, as owning a house is every Filipino’s aspiration.
Meanwhile, lot-only projects remain attractive among investors given their large cuts, greener and more open spaces, and potential for price appreciation. Colliers data showed that lot-only developments in key regions such as Southern and Central Luzon, Central Visayas, Western Visayas, and the Davao Region recorded formidable price appreciation of between 5% and 13% annually from 2016 to 2025.
The shift to suburbia continues, resulting in the creation of high-growth areas that have been capturing billions of pesos in property investments from national and homegrown players.
VISAYAS-MINDANAO RESIDENTIAL MARKET
The Visayas-Mindanao (VisMin) real estate market is emerging as a key Philippine investment hotspot, driven by residential growth, outsourcing-led office demand, and tourism expansion. Colliers has identified major localities in VisMin that we believe are primed for more property investments.
CEBU: A PROPERTY ROYALTY IN VISMIN
Cebu, the “Queen City of the South,” remains one of the most attractive and largest residential hubs outside Metro Manila. National developers continue to launch projects in Metro Cebu as they remain positive about the locale’s potential for growth even beyond 2025.
Colliers data showed that Cebu has the largest H&L stock in VisMin, with about 68,000 units posting an absorption rate of 93% as of end-2025. Meanwhile, lot-only units in the province are about 94% sold, priced at an average of P21,000 per square meter (sq.m.).
We encourage developers to implement land-banking initiatives even outside the Cebu-Lapu-Lapu-Mandaue corridor. Developers may opt to explore fringe areas, including Talisay, Liloan, and Consolacion. The completion of massive public infrastructure investments such as the Cebu Bus Rapid Transit, Metro Cebu Expressway, Lapu-Lapu Expressway, and Cebu-Mactan 4th Bridge should raise the attractiveness of these peripheral locations for more residential developments.
BACOLOD AND ILOILO: A TALE OF TWO CITIES
Iloilo’s thriving business landscape continues to attract national developers, which are building more residential communities and banking on the city’s improving infrastructure. Prices of H&L units in Iloilo rose by an average of 8% a year from 2016 to 2025. This is among the fastest rates of price acceleration across the Philippines.
With vital infrastructure projects scheduled for completion, we expect prices to continue rising in the near to medium term. The lot-only segment in the province also remains buoyant. Iloilo lot-only developments recorded a faster price increase of 10% annually from 2016 to 2025.
Colliers believes that Bacolod City will remain a dynamic property hub in VisMin. What is notable is that national property firms have established their presence in Bacolod not by merely developing standalone residential projects, but also through expansive integrated communities. H&L projects in Bacolod recorded an average annual price increase of 6% from 2016 to 2025. Lot-only developments recorded a stronger annual price appreciation of 17% during the period.
Bacolod enjoys tremendous economic opportunities, and these should be complemented by the implementation of game-changing public projects such as a railway system, bridge, and highways. Among these projects is the P188-billion Panay-Guimaras-Negros Inter-Island Link Bridge, a 32.5-kilometer bridge that will connect Panay Island, Guimaras Island, and Negros Island in Western Visayas.
DAVAO: A HUB THAT KEEPS THRIVING
In Mindanao, Davao remains the most attractive property investment destination. Davao’s competitiveness and stature as an outsourcing hub in Mindanao, backed by steady regional economic growth, should retain the city’s attractiveness for more residential projects.
Davao is undeniably a residential sweet spot in Mindanao and is a preferred site for both property end-users and investors. Sustained demand over the past few years has encouraged national and homegrown developers to launch massive horizontal residential projects in Davao. Based on the latest Colliers Philippines data, prices of H&L units in Davao grew by 6% annually from 2016 to 2025.
Meanwhile, prices of lot-only units in Davao appreciated by an average of 13% annually. As of end-2025, Davao recorded the highest average price per sq.m. for residential lots, at P23,400, compared with other key localities outside Metro Manila.
The government has lined up vital infrastructure projects in Davao that, once completed, should further solidify the locale’s attractiveness as a residential investment hub in Mindanao.
CAGAYAN DE ORO: AN EMERGING PROPERTY INVESTMENT HUB IN NORTHERN MINDANAO
Cagayan de Oro’s property market has been attracting interest from national players. Colliers Philippines saw recent activity in the city’s office market, while national players are launching and building residential towers and horizontal communities. Northern Mindanao is also being positioned as an exciting tourism corridor, and Cagayan de Oro leads the way in enticing foreign hotel brands to establish a footprint in the region.
Colliers Philippines believes that Cagayan de Oro’s competitiveness as an investment hub makes the city one of the most ideal business locations in Mindanao. The city is also on the radar of outsourcing firms, making it an ideal location for residential end-use, especially for outsourcing employees, as well as OFWs.
Laguindingan Airport will also be expanded and modernized as it is being primed as another international gateway. Colliers believes that this should further entice national and homegrown property firms to launch more residential projects in the city.
The mid-income market, at P3.6 million to P12 million, is the most attractive segment in Cagayan de Oro’s condominium market, accounting for 97% of total take-up in the city in 2025. The entry of national developers is also raising the prices of vertical projects in Cagayan de Oro. The most expensive condominium projects in the city are priced from P146,000 to P233,000 per sq.m. per unit. These include projects from national players such as Pueblo de Oro, Ayala Land, Inc., and Vista Land & Lifescapes, Inc.
For Cagayan de Oro’s H&L market, economic projects, at P580,000 to P2.5 million per unit, are well-received among local end-users, especially projects located in the areas of Gran Europa Uptown, Lumbia, and Iponan. From 2016 to 2025, H&L projects in the locale recorded an average annual price appreciation of 6%.
The rise of Cebu, Iloilo, Bacolod, Davao, and Cagayan de Oro confirms that Philippine property growth is no longer a Metro Manila story. As infrastructure unlocks new investment corridors and economic activity spreads beyond the capital, developers are increasingly finding opportunities where competition is lower and demand is more organic.
The next wave of Philippine real estate growth will likely come not from where everyone is looking today, but from where the country is building tomorrow.
Joey Roi Bondoc is the director and head of Research of Colliers Philippines.
