As the Philippines posted a GDP growth of 6.7% this year, despite the steady inflation, the real estate sector is expected to retain a growth rate of 2.1% by the year end. 

While Metro Manila and Metro Cebu are recipients of the biggest chunks of investment, talks of federalism and the ongoing push for decentralized development has made possible the emergence of new players. As the government program keeps developments abreast, here are the top 5 cities outside Metro Manila and Metro Cebu that you need to look out for real estate investments:

Metro Clark
Centered around the former American airbase, Clark has shifted from its formerly sleazy reputation to become the country’s fastest emerging metropolis. Composed of Angeles City, Mabalacat, Porac, in Pampanga, and Capas in Tarlac, it emerged literally from the ashes of Pinatubo, primarily thanks to its strategic location and the American-built airport.

While infrastructure in Clark was mothballed for a time, the heavy traffic and airport congestion plaguing Manila made Clark the natural overflow of developments. The government provided incentives for airlines to locate part of their domestic operations at the Clark International Airport. This also saw the rise of the National Government Center, which will host the 2019 Southeast Asian Games and also envisioned to host relocated national government agencies.

This slurry of activities attracted further investments beyond the Angeles-Mabalacat core of Clark to include Clark Global City in Capas, Tarlac by Udenna Land, owned by Davao City tycoon Dennis Uy. Nearby, Megaworld is set to develop the heritage zone of San Fernando City, both the province and region’s capital, into a booming township.

Sta. Rosa, Laguna
Sta. Rosa nowadays is synonymous to Nuvali, an Ayala estate development in that city. However, much of the current developments here has its roots with Canlubang, a former sugarcane estate owned by the Negrense Yulo family, which extends to nearby Calamba, the provincial capital of Laguna, Cabuyao, Biñan, and Silang in Cavite.

While initially a purely industrial zone, as seen by still existing factories and warehouses, Sta. Rosa attracted mostly upper middle class families formerly resident in Metro Manila due to its cool climate and easy connectivity to commercial districts like Makati CBD and BGC via the South Luzon Expressway and the Skyway, and to the tourism hotspot of Tagaytay.

The opening of the Nuvali campuses of Xavier School and Miriam College complements the area’s growth. With Nuvali, Ayala claimed the sweetest spot in estate developments, followed by Filinvest and Eton, which boldly claimed that they’ll be building the Makati of the South in the area. Robinsons is also set to launch their high-end Galleria development here, Robinsons Galleria South, the third one after Robinsons Galleria Cebu.

Metro Bacolod
Negros, the Sugar Capital of the Philippines, was once dependent on the sugar industry that it rose and fell with the sugar prices. The lowest point in its history, the drastic fall of sugar prices and compounding debts incurred with government loans, did not deter it from growing. In fact, it was the impetus from which the famous Masskara Festival was born.

Today, sugarcane fields still dot the island, even in its capital and largest city, Bacolod. Yet, the economy has become less dependent on sugar and diversified to other industries, notably the BPO-ICT sector. In fact, the city was awarded the title Center of Excellence and has saw a boom in both corporate and residential real estate.

Ayala was the first to take root in the province and has added retail to their real estate portfolio, followed by Robinsons. While SMDC suffered setbacks, it will be upgrading their mall development into a mixed use development and recently, Megaworld and Filinvest launched their own township developments, boosting Metro Bacolod’s place among southern giants.

Cagayan de Oro-Iligan
A relatively late-bloomer among the South’s big giants, only becoming a city in 1950, Cagayan de Oro experienced rapid growth with the expansion of its industrial port facility to complement heavy industries in the city, as well as in nearby cities and towns such as the National Steel Corporation of Iligan City and Del Monte Plantation of Bukidnon. 

These heavy industries spurred a wave of migration, mostly from Cebu, Negros, Iloilo, and Antique, many of whom are employed as professionals and industrial workers. While the growth slowed down at the end of the 1980’s, the city remained the transport gateway to northern Mindanao and an education hub as it hosts Ateneo de Cagayan-Xavier University.

However, the economy slowly recovered and today, still hosts countless factories, industries, and the Mindanao seat of the Court of Appeals. SM, Ayala, and Cebu Landmasters invested heavily on malls, condos, and resorts in the recent years. The opening of Laguindingan Airport nearby also brought developments to underlying areas and towards Iligan City.

Metro Davao
With President Rodrigo Duterte’s rise to power, all eyes are now on Davao City. But even before his ascent to Malacañang, Davao’s development was spurred by the city’s prior Japanese-owned and funded heavy industries. The international port facilities by Davao Gulf and the international airport attracted even more heavy industries and agro-industrial estates. 

Today, all of Davao City’s eleven (11) districts hosts heavy industries and residential estates that contributed to the city’s rise as the King City of the South, thanks to the efforts of local businessmen like Dennis Uy of Phoenix Petroleum and the Lim family of NCCC. However, developments have also spilled over to nearby cities such as Digos, Panabo, and Tagum.

National investors, primarily led by Ayala and SMDC, which invested heavily in their Ecoland development around SM City Davao, continue to pour more real estate developments in the city. After years of land banking, Robinsons Land and Megaworld finally launched their respective estate projects, followed by Anchor Land and DMCI. 

Is there another notable real estate boomtown we failed to mention? Should we include your hometown next? Kindly message us on Facebook and tell us more about it.