ILOILO City – One of the most attractive property investment destinations in the Visayas, this southern city is headed towards becoming the most liveable in the country, too.
Colliers Philippines, a leading commercial real estate brokerage professional services and investment management company for landlords, tenants, and investors, believes that Iloilo City, being among the preferred locations for outsourcing companies expanding outside Metro Manila, Iloilo City will continue to bloom as a viable residential investment location.
“Iloilo is quickly becoming a viable residential investment location,” said Karla Domingo, Colliers director of Advisory Services, citing the increasing economic and commercial activities in and around the city.
Domingo also noted that Iloilo City, in terms of sales even during the COVID-19 pandemic, posting numbers better than before the health crisis.
“We expect this trend to continue as developers prime up with mixed-use communities, supported by the completion of infrastructure projects,” she added.
Colliers believes that office leasing recovery and sustained introduction of new supply are factors that will positively influence demand for condominium units in Iloilo City.
Sustained regional economic growth supported by massive infrastructure completions should buoy end-user demand for horizontal projects.
In 2022, Colliers sees sustained demand for condominiums anchored by remittances from overseas Filipino workers (OFW) and an improvement of the regional economy.
From 2022 to 2026, it also projects the delivery of about 860 units annually, with the Mandurriao District accounting for 84 percent of the new condominium supply in 2022.
For Mayor Jerry P. Treñas, this will be a very exciting time for Iloilo City.
“Iloilo is really in for very exciting times. Tan-awa bala, because of the very good climate waay kita nagpasaka Real Property Tax (RPT) kag business taxes for the past three years. Subong nag-commit kita waay gyapon increase for the next three years so ang total six years. We did not increase RTP taxes but because of good fiscal management. Naka-generate kita P400 million for the surplus,” said Treñas.
The city mayor added that even when there’s a pandemic, the real estate business and business processing outsourcing (BPOs) remain very attractive.
This is also because the power rates here are cheaper and stable, said Treñas.
“Nalipay gid sila. Very safe ang Iloilo and ila nakita ang products naton very trainable. Sang una ang mga graduates sang Iloilo gasaylo pa to sa Bacolod kay ti nauna develop ang Bacolod as a BPO hub because may problema kita sang una sa power. Dumduman n’yo sang una pirmi lang kita ga-brownout, kulang kuryente tapos mahal pa,” said Treñas.
As for the real estate boom, the city mayor quipped: “Ako nalipay because that will increase our real property tax revenues. At the same time, this has a socialized housing component. Pila ka percent sini gakadto sa socialized housing.”
Corollary to this, Treñas pointed out that the city government updated its Comprehensive Land Use Plan (CLUP) valid up to 2029 to be on track with developments.
Treñas is hopeful that the CLUP will entice more investors.
CLUP aims for a well-developed city to attract investors and rebuild the economy from the adverse effects of the coronavirus pandemic.
“For the business sector, the value of CLUP is more on spatial information. Zoning ensures the optimal use of land,” said Jose Roni Peñalosa, head of the City Planning and Development Office.
CLUP acts as a guide for investors in the selection of their project sites. Location is very critical in business operations.
“We want to be livable, sustainable and resilient,” said Peñalosa. (With a report from Joey Roi Bondoc/colliers.com/Iloilo City PIO/PN)
