Bacolod and Iloilo are proving that growth stories outside Metro Manila remain alive and well. While global uncertainties and a softer economic environment have tempered business expansion decisions, the long-term fundamentals supporting these two Visayas property hubs remain intact.
At Colliers Philippines, we’ve observed that both markets continue to benefit from a young talent pool, sustained OFW remittances, and increasing investor confidence. More importantly, they are evolving beyond their traditional roles as regional centers and are carving out distinct positions in the country’s office, residential, and retail landscape. Latest Colliers Philippines data show that Western Visayas remains among the country’s faster-growing regions, providing a solid macroeconomic backdrop for thriving property demand.
While much of the property spotlight remains fixed on Metro Manila, a compelling growth story is unfolding in Bacolod and Iloilo. We see this trend in the office and residential segments.
Office sector bright spots
In the office sector, Iloilo continues to outpace Bacolod in terms of scale and absorption. Iloilo recorded about 22,000 square meters of office transactions in the first half of 2026, while Bacolod registered 3,000 square meters. Iloilo has approximately 372,000 square meters of office stock compared to Bacolod’s 210,000 square meters, and both cities still have a healthy pipeline of new projects.
Vacancy remains elevated in both markets, particularly in Bacolod, where the vacancy rate stands at 34 percent compared to Iloilo’s 24 percent. At first glance, these figures may appear concerning. But vacancies should also be viewed as opportunities to welcome new office occupants, including higher-value outsourcing firms. Companies seeking expansion outside Metro Manila now have access to quality office space at competitive rates. Bacolod and Iloilo continue to attract IT-BPM occupiers because they offer the combination of talent availability, lower operating costs, and favorable business environments. As global capability centers and outsourcing firms diversify location strategies, these cities remain well-positioned to capture future demand.
Upside for residential take up
Residential demand tells an equally compelling story. Condominium take-up in both markets remains healthy despite rising interest rates and cautious consumer spending. The average take-up rate of condominium projects in Bacolod and Iloilo is around 90 percent, indicating that buyers continue to recognize the long-term value of owning property in emerging regional centers. By 2029, Iloilo’s condominium stock is projected to reach more than 16,000 units while Bacolod’s inventory is expected to nearly double to over 8,700 units. This pipeline reflects developers’ confidence that household formation, urbanization, and investor activity will continue supporting demand.
The horizontal market remains even more resilient. House-and-lot projects in both cities enjoy an average take-up rate exceeding 90 percent, suggesting that end-users continue to prefer landed developments. This trend reflects a broader shift among Filipinos toward larger living spaces, particularly in provincial markets where affordability remains more attractive than in Metro Manila. Developers are responding by launching projects that cater to a wide range of buyers, from economic and lower middle-income segments to upscale and luxury residential communities.
The two cities also help drive Filipinos’ deployment for overseas employment and we see this trend sustaining end-user take up for residential units. The OFW households should help propel demand for the P2.5 million to P7million segment.
Moving forward, the outlook for Bacolod and Iloilo remains positive. Office leasing may see some challenges at present, but expanding infrastructure, increasing business activity, and a deepening talent base should support future absorption. Meanwhile, residential markets continue to benefit from strong end-user demand and sustained investor interest. We believe that these are not merely provincial markets waiting for growth. They are increasingly becoming growth centers. For occupiers, developers, and investors willing to look beyond Metro Manila, Bacolod and Iloilo remain two of the most attractive and competitive real estate markets to keep an eye on.