THE Philippine government’s ambitious infrastructure plan is being anchored by its decentralization push. The traffic congestion in Metro Manila has compelled the national government to improve infrastructure connectivity and establish more business hubs outside of the capital region.
In a report released Monday, Sept. 23, 2019, Colliers cited Cebu as one of the economic centers to benefit from the infrastructure push.
Colliers believes that various infrastructure projects lined up for completion from 2021 to 2024 should further boost Metro Cebu’s attractiveness as a key property destination outside Metro Manila.
The completion of the Mactan-Cebu International Airport in 2018 has raised Cebu’s attractiveness as a major business hub and Colliers sees this contributing to greater office space take-up in the city’s business districts over the next three years. The expanded facility has also buoyed the demand for hotels and resort-oriented condominium projects, especially in Mactan.
The global realtor believes that the Duterte administration’s massive infrastructure implementation and decentralization thrust should offset the potential impact of the moratorium on ecozone approvals in Metro Manila.
Based on the government’s infrastructure plan, Colliers expects Metro Clark, Metro Cebu, Iloilo, Bacolod, Bulacan province and Davao City to benefit from the administration’s ambitious infrastructure buildup. This should result in a more buoyant property market in these areas.
According to Colliers’ latest Radar report, “Road Works: Impact of infrastructure development on township expansion outside Metro Manila,” a series of public projects led by the government should provide the impetus for developers to build more office buildings and residential projects. Colliers expects this to help support the needs of tenants looking to lease space outside of Metro Manila.
Colliers also sees appetite for residential projects outside the capital region being buoyed by the government’s massive infrastructure program. Colliers believes that the infrastructure plans of the current administration are likely to strongly influence the direction of real estate developments beyond the term of President Duterte. (PR)