JLL, the Philippines’ leading real estate Research and consultancy firm is optimistic on the country’s real estate industry performance. JLL Research and Consultancy envisions that the real estate industry is booming despite headwinds and is expected to expand to cities and key provinces outside Metro Manila such as the Greater Manila.
JLL has identified Laguna, Cavite, Batangas, Bulacan, Pampanga, and Tarlac as provinces within the Greater Manila that are forecasted to grow within the next three years. Laguna, Cavite, Batangas and Bulacan are anticipated to be the areas of significant interest for both residential and industrial sectors. On the other hand, Clark in Pampanga is foreseen to be the next big thing in township development, with a mix of office, retail and hotel while Tarlac is expected to attract more industrial developments.
Provinces in the Greater Manila have started to open estates in the past years, namely: Twin Lakes and Lima Technology Center in Batangas; Bulacan Mega City and Altaraza Town Center in Bulacan; Vista City, Lancaster New City, Vermosa, Southwoods City, South Forbes City, Evo City, and Maple Grover in Cavite; Nuvali, Eton City, Greenfield City and Ciudad de Calamba in the province of Laguna; and Alviera, Mimosa Leisure Estate, Montclair and Clark Global City in Clark, Pampanga. In the province of Tarlac, meanwhile, industrial developments are expected to be developed by Ayala Land, Inc. and Filinvest Land Corporation.
JLL is optimistic that the healthy Philippine economy, the ongoing government Build Build Build projects, and the revisiting of current investment policies are factors that are encouraging both local and foreign firms to seriously consider putting their money in the Philippines. The Philippine Economic Zone Authority (PEZA) is continuously attracting firms especially from the manufacturing sector to locate in these Greater Manila provinces through their fiscal and non-fiscal incentives. Additionally, existing and future infrastructure projects, proximity of warehouses to seaports or airports are also deciding factors that investors and firms take into consideration when choosing a location for their business.
While Metro Manila remains to be the preferred location of businesses, the acceleration of infrastructure is expected to decentralise both foreign and local investments, spilling over the economic and real estate benefits parallel to the direction of the Greater Manila area. JLL anticipates that improved infrastructure and a more fluid transportation system are crucial factors that will lead to increased productivity and will result to a stronger investment climate for businesses. Presently, JLL notes that the retail sector has been expanding at a stable pace as reputable developers such as Ayala Land, Inc., SM Prime Holdings, Vista Land and Lifescapes, Inc., and Robinsons Land Corporation have started to expand to the Greater Manila area to capture the underserved market, growing population and increasing incomes in these provinces.
JLL expects the booming real estate industry in the outskirts of Metro Manila to create a slew of business and employment opportunities. Communities are also forecasted to flourish in these areas, which will mean a positive development not only for the real estate industry but for the entire Philippine economy.