Iloilo real estate market still viable on strong demand from OFWs, investors

By Francis Allan L. Angelo

The real estate market in the city and province of Iloilo continues to experience significant growth, driven by a combination of overseas Filipino workers (OFWs), domestic investors, and the development of master-planned communities such as Megaworld’s Iloilo Business Park, according to property investment and management consultant Colliers Philippines.

Joey Bondoc, director of Research at Colliers Philippines, said Iloilo’s property market has witnessed robust activity across various sectors—residential, office, and commercial—due to increasing demand and a favorable economic climate.

Iloilo’s real estate sector benefits from Western Visayas’ impressive 7.2% GDP growth in 2023, supported by strong construction activity and high levels of remittances from OFWs, which increased by 3% in the first half of 2024​.

Residential Sector: Steady Price Growth

Residential developments in Iloilo, particularly pre-selling condominiums, are thriving.

The average price per square meter for pre-selling condominiums in Iloilo has increased by 5.4%, as more buyers turn to projects within the city’s key locations such as Megaworld’s Iloilo Business Park​.

This trend is seen in notable projects like The Pinnacle and Saint Honore, where 91% and 98% of units have already been sold, respectively​.

“There’s a clear trend towards more integrated communities, which are attracting both local and overseas buyers. People are seeing Iloilo as a place with a strong potential for long-term growth,” Bondoc said.

The increasing prices have not discouraged buyers, who are drawn to flexible payment terms and high-quality developments.

Office and Commercial Markets: A BPO Hub on the Rise

Iloilo continues to solidify its status as a preferred destination for business process outsourcing (BPO) firms.

Companies are expanding into new office spaces, with major developments like the Enterprise One and Enterprise Two by Megaworld set to be completed by 2025, adding over 28,000 square meters of leasable office space​.

These expansions cater to the growing demand for office spaces driven by BPO and KPO firms.

“Iloilo is rapidly becoming one of the most attractive cities for outsourcing, thanks to its competitive cost of living and growing infrastructure,” Bondoc​ said.

The commercial sector has also seen significant growth. The rise in infrastructure projects, including the upcoming Panay-Guimaras-Negros Bridge, further enhances connectivity, making the city a strategic location for business​.

Strong Demand from OFWs and Local Investors

OFWs remain a key driver of Iloilo’s property boom. The influx of remittances has bolstered household spending, with many OFWs opting to invest in real estate, particularly in townships like Iloilo Business Park​.

“Many OFWs are looking to invest their earnings in Iloilo’s real estate, which offers a unique opportunity for value appreciation,” said Bondoc.

He noted that Iloilo’s strong residential market is complemented by the city’s growing commercial and office spaces, appealing to both investors and end-users​.

Outlook: Continued Growth

With several ongoing and upcoming infrastructure projects, such as the Iloilo-Capiz-Aklan Expressway and the expansion of Iloilo International Airport, real estate values are expected to continue rising.

As the demand for both residential and office spaces grows, Iloilo is positioning itself as one of the Philippines’ most dynamic property markets outside Metro Manila​.

“Iloilo is poised for sustained growth as infrastructure improves and more investors recognize the long-term potential of the market. The city’s strong fundamentals, particularly its BPO-driven economy and influx of remittances, will keep pushing the property market upward,” Bondoc said.