The Philippines’ next real estate growth story may no longer be written in Metro Manila.
Instead, it is increasingly unfolding in the Visayas and Mindanao, where expanding cities, rising incomes, tourism, and infrastructure investments are reshaping the country’s property map.
Property consultant Colliers Philippines expects the momentum to continue over the next four years, projecting the delivery of about 45,000 condominium units across the two island groups from 2026 to 2029. More than 60 percent of the new supply will rise in Cebu and Davao, but emerging cities such as Iloilo, Bacolod, and Cagayan de Oro are steadily carving out their own niches.
The common thread is that growth is becoming broader rather than merely bigger.
Developers are no longer simply replicating Metro Manila projects. They are rolling out sprawling horizontal communities, leisure-oriented developments, and mixed-use townships tailored to local demand, where affordable and mid-income buyers—particularly overseas Filipino families—remain the market’s backbone.
Perhaps the biggest surprise came from the office sector. Iloilo overtook Cebu as the largest provincial office market in the first quarter, accounting for nearly half of all office transactions outside Metro Manila. While outsourcing firms remained the primary tenants, government agencies, energy companies, and manufacturers also expanded, suggesting provincial office demand is becoming more diversified.
Even so, vacancy rates ranging from 16 percent to 34 percent in several markets indicate landlords will still need to compete aggressively for tenants. Davao stood out as the exception, posting a remarkably tight 3-percent vacancy rate.
Tourism is adding another growth engine.
Colliers expects nearly 7,900 hotel rooms to be completed across VisMin through 2029, with foreign brands accounting for more than 60 percent of the pipeline. Airport modernization projects and better road networks are expected to draw more international visitors not only to Cebu but also to Bohol, Boracay, Iloilo, and Cagayan de Oro.
Meanwhile, land values continue to quietly appreciate. House-and-lot prices have steadily climbed over the past decade, while residential lots have posted even faster gains, reflecting investors’ appetite for larger developments outside the capital.
For property developers, the message is becoming harder to ignore: the country’s next real estate frontier is no longer just outside Metro Manila—it is increasingly outside Luzon.
