Iloilo is one of the most competitive property markets in the Philippines. Colliers Philippines has observed that Iloilo’s real estate market continues to benefit from a young talent pool, sustained OFW (Overseas Filipino Worker) remittances, and increasing investor confidence. More importantly, Iloilo is evolving beyond its traditional role as a regional center and is carving out distinct positions in the country’s office, residential, and retail landscape.
We see Iloilo thriving in the long run, supported by stable macroeconomic pillars including strong regional economic growth, sustained inflows from Ilonggos working abroad, and the completion of major infrastructure developments that will further enhance the province’s competitiveness.
Thriving office market
Iloilo continues to attract outsourcing locators given its skilled and talented workforce. Note that talent availability remains among the major considerations of outsourcing firms when locating outside Metro Manila. According to the Commission on Higher Education (CHED), Iloilo produces about 22,000 graduates annually. This young, Gen Z- and millennial-dominated workforce continues to contribute positively to Iloilo’s economy.
Iloilo emerged as the top driver of office space take-up outside Metro Manila in the first half of 2026, given the availability of high-quality office spaces in the province. In H1 2026, Colliers recorded 65,000 square meters of office transactions outside the National Capital Region (NCR), representing a 59% decline YoY. Iloilo cornered 22,000 square meters of office space deals during the period, or about a third of the total transactions outside Metro Manila.
Iloilo’s office vacancy stood at 24% as of Q2 2026. At first glance, this figure 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 NCR now have access to quality office space at competitive rates. Iloilo continues to attract IT-BPM occupiers as it offers a combination of talent availability, lower operating costs, and favorable business environments. As global capability centers and outsourcing firms diversify location strategies, Iloilo remains well-positioned to capture future demand.
Iloilo’s overflowing residential potential
Condominium take-up in Iloilo remains healthy despite rising interest rates and cautious consumer spending. As of Q1 2026, average take-up of condominium projects in Iloilo reached 89%, 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. This pipeline reflects developers’ confidence that household formation, urbanization, and investor activity will continue supporting demand.
Iloilo’s horizontal market remains even more resilient. House-and-lot (H&L) and lot-only projects in Iloilo enjoy an average take-up of 96% and 81%, respectively, as of Q1 2026, 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.
Western Visayas also accounted for 10% of the 2.19 million Filipinos deployed for overseas employment in 2024, and we believe that this should partly support end-user take-up for residential units in Iloilo. The remittance-receiving households should help propel demand, particularly for units under the affordable to lower mid-income segments (PHP2.5 million to PHP7 million).
Moving forward, the outlook for 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.
As developers start expanding outside of Metro Manila, we see Iloilo playing an important role in developers’ decentralization efforts. Colliers Philippines is optimistic that Iloilo will continue to be on the investment radar of property firms in the years to come.
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