Central Luzon: A rising economic and property powerhouse

CENTRAL LUZON is emerging as one of the fastest-growing regions in the Philippines, solidifying its role as a vital contributor to the country’s economic development. Based on latest government data, the region recorded a 6.5% gross domestic product (GDP) growth in 2024, an improvement from 6.1% in 2023. This expansion underscores the dynamism of Central Luzon’s economy, driven by construction, manufacturing, and services sectors. Notably, the region accounted for 11.1% of the national GDP, highlighting its strategic importance in the broader Philippine economy over the near to medium term.

Over the past few years, we have seen major developers aggressively landbanking and developing masterplanned communities in Central Luzon, especially in Bulacan, Tarlac, and Pampanga.  We expect proactive landbanking in other parts of the region as developers are gradually positioning and firming up their positions in a constantly evolving property market like Central Luzon.

INFRASTRUCTURE AS A REGIONAL GROWTH CATALYST
The backbone of Central Luzon’s economic surge lies in its massive infrastructure projects. The Central Luzon Link Expressway Phase 1, completed in 2021, has already enhanced connectivity within the region. Looking ahead, transformative projects such as the New Manila International Airport, expected beyond 2028 with a capacity of 100 million passengers annually, and the Manila-Clark Railway, slated for completion in 2028, promise to revolutionize mobility and trade within the region. Other projects, including the North Luzon Expressway–South Luzon Expressway (NLEX-SLEX) Connector (2026) and Metro Rail Transit (MRT) Line 7 (2027), will further integrate Central Luzon with Metro Manila, reducing travel times and boosting commercial activities.

Air transport is also being strengthened, with the expansion of Clark International Airport (completed in 2021) and the Bulacan Airport project, an ambitious airport project that will likely be at par with major airports in Southeast Asia such as Changi in Singapore. These developments will position Central Luzon as a future logistics hub, capable of supporting both domestic and international trade.

CONSTRUCTION AND SERVICES DRIVING GROWTH
The construction sector has been particularly robust, registering 13.7% growth in 2024, nearly doubling its 7.3% expansion in 2023. This surge reflects both public infrastructure spending and private real estate development in central Luzon. With national players positioning to capture office, residential, leisure, retail, and industrial demand in the region, we expect private construction to rise steadily.

Services, including information and communication, also contributed positively, with a 5% growth rate in 2024. The sub-segment is partly propelled by the attractiveness of the region’s outsourcing segment. Big outsourcing firms such as Majorel, Cloudstaff, Concentrix, Alorica, Asurion, Infosys, TaskUs, iQor, and Sutherland are already in the region.

Together, construction and services are reshaping the region’s economic landscape, creating jobs, and attracting investments which result in a more inclusive economic expansion.

REAL ESTATE APPRECIATION IN CENTRAL LUZON AND  ITS CENTRAL ROLE IN NATIONAL PROGRESS
Central Luzon’s economic momentum is mirrored in its real estate market. Lot-only developments have experienced healthy price increases, with projects launched in recent years showing strong compounded annual growth rates (CAGR).

Central Luzon’s growth story is not just regional — it is national. Its proximity to Metro Manila, coupled with massive infrastructure investments, positions it as a key driver of decentralization. By easing congestion in the capital and offering alternative hubs for business and industry, Central Luzon supports the government’s vision of balanced regional development.

AT THE CENTER OF PHILIPPINE PROPERTY’S TRANSFORMATION
Central Luzon’s trajectory illustrates how infrastructure, construction, and services can synergize to propel regional growth and eventually contribute to national progress. With its expanding share to the national GDP, booming real estate market, and transformative public projects on the horizon, the region is poised to become a cornerstone of Philippine economic progress.

As the country continues to pursue inclusive development, Central Luzon stands out as a model of how strategic property investments can unlock long-term prosperity.

Moving forward, Central Luzon’s role to national progress will be pivotal as its growth angle is national and not just regional.

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com