Real estate investments in the Philippines are expected to increasingly move to the Visayas and Mindanao in the coming years as businesses expand outside Metro Manila, according to Prime Philippines Inc.
The property consultant said decentralization is driving growth in regional cities, with companies now treating locations in the Visayas and Mindanao as strategic business hubs rather than secondary markets.
Prime Philippines vice president for Visayas-Mindanao Ruth Coyoca said many cities in the regions are developing into self-sustaining economic centers that attract business process outsourcing (BPO) firms and industrial locators because of lower operating costs and access to a young workforce.
She noted that Mindanao’s population growth rate of 1.18 percent is higher than Luzon’s, helping assure companies of a steady talent pool for future operations.
While most investments are still concentrated in Luzon, Prime Philippines expects strong growth in cities such as Cebu, Davao, Bacolod, and Cagayan de Oro over the next decade.
Cebu is seeing rising lease rates and more premium office developments, signaling a shift toward higher-quality commercial spaces while remaining competitively priced.
Davao, meanwhile, is expected to absorb around 85,000 square meters of new office space over the next four years. The city also posted the country’s highest office occupancy rate among major office hubs at 95.5 percent in the first quarter.
Bacolod is also emerging as a key investment destination due to its growing retail and services sectors fueled by consumer spending.
Prime Philippines added that investor interest is also expanding to other cities such as Bohol, Dumaguete, General Santos, Zamboanga, and Iloilo.
The trend highlights the growing importance of regional cities in driving the country’s future economic and property growth, reducing reliance on Metro Manila as the main center for business expansion.
