Sheila Lobien: Cebu, Pampanga emerge as provincial growth engines

Cebu and Pampanga are emerging as the country's strongest provincial growth drivers as infrastructure investments, expanding office developments, and the rapid growth of logistics reshape the Philippine property market beyond Metro Manila, according to Lobien Realty Group (LRG). In its midyear property briefing, LRG director for sales and strategic partnerships Alex Regala told the audience that the country's growth story is no longer centered on the National Capital Region, noting that Cebu continues to have the largest office inventory among provincial markets, while Pampanga has the biggest office development pipeline.

Cebu remains the country's leading provincial office market, supported by its established BPO sector and strategic location in the Visayas. Pampanga, meanwhile, is preparing for another wave of growth with around 145,000 square meters of office space under development — the largest pipeline among provincial markets. Regala attributed the momentum to the government's aggressive infrastructure program, with Pampanga benefiting from the North-South Commuter Railway linking Clark to Calamba, the continued expansion of Clark International Airport, and an extensive expressway network. Cebu, meanwhile, is expected to gain from the New Cebu International Container Port, which will enhance trade and cargo movement across the Visayas.

Regala noted that 74 percent of township developments in the Philippines are now located outside Metro Manila, reflecting the growing importance of regional growth centers, while the government's designation of 25 Digital Cities has likewise encouraged IT-BPM firms to expand into the provinces, creating jobs while easing congestion in Metro Manila. While provincial office vacancies remain elevated, Regala said these should be viewed as opportunities for future expansion, noting that new office supply in major provincial markets declined this year as developers slowed project completions following previous oversupply, even as rental rates improved.

On the industrial side, LRG associate director Stephanie Ng said Cebu and Pampanga are also strengthening their positions as logistics hubs as e-commerce, manufacturing, and modern supply chains continue to fuel demand for industrial facilities. She identified Clark in Pampanga as one of the country's fastest-growing logistics centers due to its strategic location, airport infrastructure, and expressway access, citing a 15-hectare industrial hub development in Clark that will deliver 78,000 square meters of warehouse space by 2028. Cebu is likewise expected to reinforce its role as the primary distribution hub for the Visayas through continued investments in transport and port infrastructure. Ng said the Philippine warehousing market, valued at around $441 million, is projected to grow at a 5.2 percent compound annual growth rate to $706 million by 2034, driven by logistics, manufacturing, and e-commerce, with infrastructure remaining the biggest driver of demand as improved roads, ports, and airports reduce freight costs and shorten delivery times.

Despite geopolitical tensions, inflation, and global economic uncertainty posing near-term risks, LRG CEO and Founder Sheila Lobien said the firm is maintaining an optimistic outlook for the Philippine real estate sector, as strong domestic fundamentals, infrastructure investments, and the continued expansion of the IT-BPM industry support long-term growth.

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https://businessmirror.com.ph/2026/08/04/cebu-pampanga-emerge-as-provincial-growth-engines/