CENTRAL LUZON remains a major economic center outside of Metro Manila. Its property market has substantially evolved over the past few years with national players seizing opportunities by aggressively land banking in the region. We see tremendous upside potential for its real estate market. Outside of residential, we see opportunities for office and industrial sectors. This dynamism should be supported by vital public projects due to be implemented beyond President Ferdinand R. Marcos’ term.
Comprising of Pampanga, Bulacan, Tarlac, Zambales, Bataan, Nueva Ecija, and Aurora, Central Luzon is perhaps best known for its excellent culinary tradition; its vast expanse of farmlands, which earned it the nickname “Rice Granary of the Philippines”; the secluded coves of Zambales and Bataan, which are popular weekend destinations; and the adventure spots of Baler and the rest of Aurora. But aside from these, Central Luzon is also an economically buoyant regional hub with significant contributions to the national economy.
Central Luzon accounted for 13% of total overseas Filipino workers deployed in 2022. In our view, this is likely to ensure that the region’s economy will continue to be sustained by remittances from Filipinos working abroad. What’s also interesting is that the central Luzon region accounted for 13% of residential loans granted by Philippine banks in 2023, up from 8% in 2019. This indicates continued rise in central Luzon residents’ appetite for residential units whether for end use or investment.
CENTRAL LUZON ATTRACTS LARGE BPO PLAYERSTalent availability remains to be the top consideration of outsourcing firms. Bulacan, Pampanga, and Tarlac produce about 15,000 graduates annually, according to the Commission on Higher Education. This makes central Luzon a fertile ground for the business process outsourcing (BPO) expansion outside of the capital region.
Latest Colliers Philippines data showed that areas outside of the national capital region covered 21% of office space deals closed in the first half of 2024. This translates to about 122,000 square meters (sq.m.) of office space transactions during the period. Metro Manila accounted for the remaining 79% or about 459,000 sq.m. of office space deals. Pampanga remains one of the most active after recording 36,000 sq.m. of office space transactions during the period. Some of the notable BPO companies already in Pampanga include iQor, Asurion, Concentrix, and Cloudstaff. Other major outsourcing players in central Luzon include Foundever in Tarlac, TaskUs in Bulacan, and Emapta in Benguet.
Pampanga continues to dominate in terms of supply of high-quality office space and is ready to accommodate BPO companies that are on expansion mode. From 2025 to 2026, among the buildings due to be completed are Four and Five West Aeropark campuses, 5 Workplus by Filinvest Land, and Pasudeco Tower 1 by Megaworld.
A COMPETITIVE INDUSTRIAL HUBThe Department of Trade and Industry is actively promoting Central Luzon as a manufacturing and logistics hub, highlighting growth opportunities in Pampanga, Bataan, and Tarlac. For instance, foreign industrial locators have expressed willingness to invest in New Clark City. These businesses are involved in logistics, e-commerce, light manufacturing, and data center operations. In our opinion, the development of New Clark City (NCC) in Capas will likely spur business opportunities in Central Luzon. The NCC is being primed as one of the major business districts north of Metro Manila. This also shows that industrial players have options outside of Clark Freeport in Pampanga. This should result in further diversification of central Luzon’s industrial landscape.
Colliers believes that the operation of the newly modernized Clark International Airport should further raise the attractiveness of Central Luzon for more manufacturing and logistics investments. The development of the Manila-Clark Railway should also spur growth in the region. A cargo railway should further stoke central Luzon’s competitiveness as an industrial zone in Luzon.
PUMP-PRIMING CENTRAL LUZON PROPERTY THRU INCLUSIVE INFRABataan-Cavite Interlink Bridge will be built over Manila Bay and will reduce travel time between Bataan and Cavite from five hours to just 30 minutes once completed. Construction is expected to start in 2025 with full operations projected beyond 2028. The Bulacan International Airport is a 2,500-hectare, P736 billion ($15.3 billion) aviation hub with three modern passenger terminals, four runways, and eight taxiways, which will serve as an alternative airport to help decongest the Ninoy Aquino International Airport. The airport project is expected to be completed by the end of 2028. Meanwhile, Metro Rail Transit Line 7 (MRT-7) aims to cut travel time from Quezon City to Bulacan from two to three hours to 35 minutes. MRT-7 can accommodate 300,000 passengers during its first year of operation and may reach 850,000 in its 12th year. Another project that will complement these is the Central Luzon Link Expressway, a 66.4-kilometer road project that will connect Tarlac City and San Jose, Nueva Ecija. As I previously stressed, these should further raise land and property prices in the region.
Central Luzon is primed for more property investments and these should excite residents and investors in the years to come!
Joey Roi Bondoc is the director and head of Research of Colliers Philippines.
