BALANCE Greater Metro Area (GMA) continues to have the highest loan share in the residential market, while Southern and Central Luzon maintain their leadership when it comes to the industrial market, specifically the warehouse market.
The Lobien Realty Group (LRG) presented these trends during its mid-year media briefing on July 9. LRG is one of the Philippines’ fastest-growing commercial real estate consultancies, providing strategic advisory and transaction services across office, industrial, retail, investment and project leasing.
According to the LRG report, the share of granted loans given to Balance GMA in the first half of 2026 is 40 percent, making it the main driver of demand for the residential market. About 34 percent of the loans are allocated for residential houses, while 6 percent are meant for condominium units. The region’s residential loans share is higher than that of the National Capital Region (NCR), which currently has a 29 percent share, a decrease from its pre-pandemic 46 percent share; about 26 percent of the NCR loans are for residential homes and 3 percent for condominium units.
One significant reason for this lead is Balance GMA’s “price advantage” compared to the NCR’s. Residential loans for houses are cheaper by 57 percent, while those for condominiums are lower by 32 percent.
“The good deals [for residential properties] are still outside Metro Manila; one property is usually 60 percent lower compared to a property inside Metro Manila,” said LRG founder and CEO Sheila Lobien. “Many people are taking loans from banks to buy properties — mostly their own house and lot — outside Metro Manila.”
Meanwhile in the NCR, “demand is driven mainly by the affordable and economic housing segments,” said the report. Lobien said that, when it comes to condominiums, the most sellable units “are still in the 30 to 80 sqm range.”
One factor that can affect this trend, and which the company is monitoring, is the impact of the current Middle East crisis on the overseas Filipino worker (OFW) remittances. OFWs are one major customer segment for the residential market. As of last year, the personal remittances reached $39.62 billion; 14 percent of these or total remittances, come from Middle Eastern countries led by Saudi Arabia and the United Arab Emirates.
“The OFW share is what we have to watch,” Lobien said, “and we hope that [the remittances] will not get affected.”
The industrial space
The main growth areas for the Philippine warehousing market, currently valued at $441.7 million, are Central and Southern Luzon, as “Cavite, Laguna, and Batangas continue to attract strong occupier and developer interest,” said the report. “Clark is emerging as the next major logistics hub. Its strategic location and connectivity make it a top destination for large-scale developments.”
LRG Associate Director Steph Ng gave some of the reasons fuelling this growth. First is the explosion of e-commerce. “Philippine e-commerce users are projected to hit 17 million users this year, up 15 million from last year,” she said. “As online shopping continues to grow, businesses are investing in smart and modern warehouses to improve efficiency and enable faster delivery time.”
Rising government infrastructure projects are another important factor. Ng said that, in connecting Metro Manila to the growth corridors of North and South Luzon, they “are expected to reduce trade costs, improve access to ports and airports, and reduce travel time, making the surrounding areas more attractive for warehouse developments.”
Ng said that the emergence of Central Luzon as an industrial hub can also be attributed to “developers ... betting on the development of the Clark International Airport ... Its proximity via SCTEx (Subic-Clark-Tarlac Expressway) and North Luzon Expressway (NLEx) ... Availability of large-scale industrial developments, making it a regional distribution hub in North and Central Luzon.”
Cavite and Laguna can claim to have the most active occupier demand. Their strengths are their proximity to Metro Manila; access to CALAx (Cavite-Luzon Expressway), CAVITEx (Manila-Cavite Expressway), and SLEx (South Luzon Expressway); the presence of large master-planned industrial estates; and strong demand from retail and e-commerce occupiers, said the report.
Batangas is another growth area because of its port, the expansion of its manufacturing sector, and ongoing industrial park developments.
Bulacan has huge potential in the industrial market because of the development of the New Manila International Airport, which Ng said “is expected to increase air cargo capacity, stimulating demand for warehouses and industrial facilities. Rizal is expected to be the primary gateway for Eastern Metro Manila distribution.”
Meanwhile, outside Luzon, Cebu and Cagayan de Oro “are expected to become the regional distribution centers for Visayas and Mindanao,” said Ng, because of “the strong demand coming from the retail and e-commerce sectors.”
The report forecasted that the Philippine industrial market is expected to grow at a compound annual growth rate of 5.2 percent, hitting $706.8 million by 2034.
