Infrastructure delivery key to provincial property expansion, analysts tell developers
Property consultants say developers expanding outside Metro Manila must assess local governments' ability to deliver infrastructure before committing to new investments. Analysts identified Cebu, Iloilo, Davao, Cagayan de Oro, and the Luzon Economic Corridor as potential markets, while warning that
Property developers looking to expand outside Metro Manila should assess local governments' ability to deliver infrastructure projects alongside actual business activity and housing demand before committing to new investments, according to property consultants.
Savills Philippines Head of Research Dino G. Palanca said developers should examine local government units' (LGUs) track records in completing infrastructure projects, budget utilisation, permitting efficiency, and coordination with national agencies. "The key is to identify markets where infrastructure improvements are supported by actual business expansion, employment growth, and housing demand," Mr Palanca said in a Viber message on 28 Oct. He said developers should verify whether proposed roads, utilities, and drainage systems are funded, approved, and on schedule.
Colliers Philippines Director of Research Joey Roi Bondoc likewise said delays in public infrastructure projects could discourage private sector investment. "If the public sector itself is experiencing delays in the development of its own infra, where they have all the biddings and all the accredited contractors, and then they still experience massive delays, I don't think that that bodes well in terms of attracting private sector investment," he said in a call on 29 Oct. Mr Bondoc cited the Department of Trade and Industry's Cities and Municipalities Competitiveness Index as a potential reference for evaluating local infrastructure performance and business friendliness.
Jones Lang LaSalle (JLL) Philippines Head of Research and Advisory Janlo de los Reyes said developers engage with LGUs and other stakeholders to coordinate infrastructure requirements for township projects. He cited discussions with private infrastructure proponents on potential toll road connections and exits serving new developments.
Property consultants identified several regional markets offering opportunities. Mr Palanca cited Cebu, Iloilo, Davao, and Cagayan de Oro as potential investment locations, particularly for industrial and logistics facilities, offices, residential projects, and mixed-use developments. Mr Bondoc identified northern Mindanao as a market with significant growth potential, citing prospects in tourism, agribusiness, and property development. He said residential developments in Cagayan de Oro typically fall within the P3.6-million to P7-million price range, with more upper-middle income projects priced between P7 million and P12 million expected in the coming years. Mr de los Reyes identified the Luzon Economic Corridor, particularly Subic, Clark, and Batangas, as an area offering property investment opportunities, with nearby provinces including Bataan, Laguna, and Cavite as potential beneficiaries.
Beyond infrastructure delivery, analysts highlighted the need for coordination between developers and LGUs in planning large-scale projects across municipal boundaries. Mr Bondoc said some comprehensive land use plans (CLUPs) do not adequately reflect current property market preferences and housing requirements. Mr Palanca said developers planning projects across neighbouring municipalities could adopt coordinated master plans linking residential communities, commercial centres, industrial areas, and employment hubs, adding that developers could explore public-private partnerships for roads, drainage, utilities, and other infrastructure, subject to clear agreements on funding, responsibilities, timelines, and maintenance.
The analysts' assessments come after the World Bank released its report, From Cities to Corridors: Unlocking the Philippines' Urban Growth Potential, on 27 Oct, highlighting infrastructure delivery and coordination challenges that constrain regional economic development. The report identified 26 clusters of neighbouring cities and municipalities covering 112 urban LGUs that could serve as anchors for regional economic growth.
