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What is happening in Central Luzon’s real estate market? Are property values rising or falling? Is Pampanga still attracting significant interest from investors? How are local government policies shaping real estate development and taxation in 2025?
These are the questions we hear every day from industry professionals, potential buyers, and sellers across the region, from Angeles City to Tarlac and beyond. You might be curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Central Luzon real estate landscape daily. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel well-informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts, and we’ll strive to enhance this content for you.
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1) Properties near Clark will attract more foreign buyers for their international connectivity
Foreign buyers are increasingly interested in properties near Clark because of its excellent international connectivity.
Clark International Airport is expanding its flight routes and frequency, making it a hotspot for travelers and investors. Cebu Pacific has added 13 new domestic and international routes, and based more aircraft at Clark, enhancing its accessibility. This makes Clark a more appealing destination for international visitors.
The airport's modernization is a game-changer, drawing in more manufacturing and logistics investments to Central Luzon. Over 100 US companies are eyeing investment opportunities in the Clark area, especially in infrastructure and technology sectors. This aligns with the growing foreign direct investment in the region.
Government initiatives are also boosting Clark's profile as a business hub. The Luzon Economic Corridor, which includes Clark, is being developed into a strategic center for commerce and logistics. Infrastructure projects like the Manila-Clark Railway are improving connectivity and cutting travel time between major cities, making Clark even more attractive to foreign buyers.
Clark's strategic location and improved infrastructure are key factors in its rising popularity. The area's development is supported by significant government efforts, making it a prime spot for investment. These enhancements are not just about convenience; they are transforming Clark into a vibrant economic zone.
With these developments, Clark is becoming a top choice for those looking to invest in the Philippines. The combination of international connectivity and local government support is creating a thriving environment for business and real estate.
Sources: BCDA, Simple Flying, Trade.gov
2) Angeles City will see higher rental yields due to the influx of BPO companies
The influx of BPO companies in Angeles City is set to boost rental yields.
With the BPO sector booming, employment rates are climbing. By 2024, the Philippines' BPO industry will have over 1.7 million full-time employees. This surge means more people are moving to Angeles City for job opportunities, creating a higher demand for housing.
BPO employees often enjoy higher disposable incomes, allowing them to afford better living conditions. They prefer renting homes close to their offices to cut down on commuting time and costs, which further fuels the demand for rentals in BPO-heavy areas.
Developers are catching on, building more residential properties specifically for BPO workers. In Central Luzon, there's a noticeable trend of mixed-use developments designed to attract BPO companies. This construction boom is a direct response to the needs of the BPO workforce, supporting higher rental yields.
These new developments are not just about quantity but also quality, offering amenities that appeal to BPO employees. This focus on lifestyle and convenience is a smart move, as it aligns with the preferences of a workforce that values proximity and comfort.
As more BPO companies set up shop in Angeles City, the ripple effect on the housing market is clear. The demand for rentals is rising, and with it, the potential for increased rental yields. The city's transformation into a BPO hub is reshaping its real estate landscape.
Sources: Magellan Solutions, Local Housing Solutions, Property Report PH
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Demand for modern, tech-enabled homes in Central Luzon will rise due to the younger population
The younger population in Central Luzon is set to drive demand for modern, tech-enabled homes.
Central Luzon is bustling with a youthful vibe, with 2.3 million individuals aged 15-24 making up nearly a fifth of the region's population. This group is not just young but also tech-savvy, eager to embrace the latest in home technology. Picture a generation that grew up with smartphones and the internet, naturally inclined towards homes that match their digital lifestyle.
Speaking of connectivity, Central Luzon is catching up fast. 12.8% of households now have internet access, a number that's steadily climbing. This digital wave is crucial because it sets the stage for smart home technology, which is becoming a must-have for many Filipinos. Imagine controlling your home with just a tap on your phone—it's not just a dream anymore.
People are increasingly looking for homes that offer convenience, efficiency, and security through smart features. The Smart Home market in the Philippines is on the rise, largely thanks to the younger crowd's preferences. Real estate developers are catching on, weaving tech-enabled features into new housing projects to cater to this demand.
In Central Luzon, the younger generation is not just shaping the future; they're living it. Their tech-savvy nature and growing digital connectivity are driving a shift towards homes that are as smart as they are. This trend is reshaping the real estate landscape, with developers keen to meet the expectations of this dynamic demographic.
As more young people in Central Luzon seek homes that align with their tech-driven lifestyles, the demand for modern, tech-enabled homes is set to soar. This shift is not just about technology; it's about creating living spaces that resonate with a generation that values innovation and convenience.
Sources: UPPI, BusinessWorld, Statista
4) Bulacan rental prices will increase as infrastructure projects finish
Rental prices in Bulacan are on the rise as major infrastructure projects near completion.
With the development of the New Manila International Airport (NMIA) and the North-South Commuter Railway (NSCR), Bulacan is becoming more accessible. This improved connectivity is drawing more people to the area, which is likely to drive up rental prices. Imagine the convenience of living in a place where you can easily commute to Metro Manila or other parts of Luzon.
Looking at similar regions, we see a pattern: rental prices tend to rise after big infrastructure projects wrap up. Take the Clark International Airport and the Clark Freeport Zone in Central Luzon, for instance. These developments have already led to increased property values and rental prices in nearby areas. The NMIA, which is 42% complete and expected to be operational by 2027, is set to attract more residents and businesses, pushing rental prices higher.
The NSCR is another game-changer. It's part of the government's plan to boost urban and economic growth, making Bulacan more appealing for both living and working. Government reports suggest these projects will generate over 1 million jobs and attract foreign investments in Central Luzon, further driving up property values and rental prices.
For those considering a move, Bulacan offers a promising future. The area is not just about improved transport links; it's about becoming a hub of activity and opportunity. As these projects near completion, expect rental prices to climb, reflecting the area's growing appeal.
So, if you're thinking about renting in Bulacan, now might be the time to act before prices rise even more. The combination of new infrastructure and economic growth is setting the stage for a vibrant community, making it a smart choice for potential renters.
Sources: Colliers, Harvard ADS, BusinessWorld Online
5) High-end residential demand in Central Luzon will stay stable, with slight increases in certain areas
The demand for high-end residential properties in Central Luzon is expected to remain stable, with slight increases in select areas.
Central Luzon has seen a steady rise in property values, with house and lot projects experiencing an annual price increase of nearly 4% from 2016 to 2023. This trend suggests that property values will likely continue to grow, making it an attractive investment for potential buyers.
Infrastructure development is a major factor driving this demand. Projects like the Central Luzon Link Expressway are set to boost land and property prices. The 2024 national budget has allocated P126.38 billion for infrastructure projects in the region, including road and flood control initiatives, which enhance its appeal to buyers.
There's also a noticeable interest from foreign investors and expatriates. Favorable market conditions and government initiatives promoting regional development are drawing them in. This is especially true as urban congestion in Metro Manila pushes high-net-worth individuals to look for luxury properties in nearby areas like Central Luzon.
Central Luzon offers a unique blend of urban convenience and rural charm, making it a prime location for those seeking a balanced lifestyle. The region's strategic location, coupled with ongoing infrastructure improvements, positions it as a promising area for real estate investment.
With these factors in play, Central Luzon is poised to become a hotspot for high-end residential properties, attracting both local and international buyers looking for value and growth potential.
Sources: Property Report, Philstar, PPIE, BusinessWorld Online
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6) New property tax rules will make Central Luzon more appealing for long-term investments
In 2025, Central Luzon has become a hotspot for long-term investments thanks to new property tax regulations.
Starting in 2026, property tax valuations for commercial and agricultural properties will drop to just 25% of their actual value. This makes it much cheaper for businesses to set up shop in the region, offering a golden opportunity for investors looking to cut costs.
Even with these lower tax rates, local governments aren't missing out. The state steps in to reimburse any lost property tax revenue, ensuring that essential services and infrastructure projects keep rolling. This is a big deal for investors who want to see their investments supported by solid infrastructure.
Central Luzon's competitive tax rates are making waves, especially when compared to other parts of the Philippines. The region is seeing a surge in office space transactions, capturing a large share of deals outside the bustling Metro Manila. This trend shows that investors are increasingly eyeing Central Luzon as a prime location.
Adding to the buzz, banks in the region are granting more residential loans, a sign that both businesses and individuals are betting on Central Luzon's growth. This financial activity is a clear indicator of the region's rising appeal.
With these changes, Central Luzon is not just a place to watch; it's a place to invest. The region's transformation is drawing attention from all corners, making it a key player in the country's real estate scene.
Source: BusinessWorld Online
7) Properties near green spaces and parks will become more desirable due to environmental initiatives
In recent years, property values near green spaces have seen a significant rise, especially in areas like Central Luzon.
Take Ayala Land's integrated estates, for example, where lot prices have jumped from P20,000 per sqm in 2014 to about P70,000 per sqm in 2023. This impressive growth highlights how much people value living close to nature. The demand for homes with easy access to parks is on the rise, and it's not just about the view. In Central Luzon, there's a noticeable shift towards suburban living, with more people seeking the tranquility and benefits of green spaces.
Government initiatives are also making a big impact. The Philippine Biodiversity Strategy and Action Plan (PBSAP) 2015-2028 emphasizes the importance of green spaces for improving physical and mental health. These efforts are making properties near parks even more appealing. People are drawn to the idea of living in areas that promote well-being and community cohesion.
Media coverage often highlights the perks of living near green spaces, like improved air quality and reduced urban heat. These benefits are becoming more well-known, and as a result, properties near parks are in higher demand. It's not just about aesthetics; it's about a healthier lifestyle.
In Central Luzon, the trend towards suburban living and geographic diversification is clear. People are increasingly looking for homes that offer easy access to green spaces, which is driving up demand for such properties. The combination of government initiatives and media coverage is making these areas more desirable.
As more people become aware of the health and environmental benefits of living near green spaces, the demand for properties in these areas continues to grow. The trend is clear: properties near parks and green spaces are becoming more desirable, and this is reflected in the rising property values.
Sources: Inquirer, Property Report
8) Government incentives for green building will boost eco-friendly residential projects
Government incentives are driving a surge in eco-friendly residential projects across the country.
In Central Luzon, the national government is investing heavily in infrastructure, with a focus on green building projects. This commitment provides a solid base for developers to adopt sustainable construction methods. Developers now have a financial cushion to explore eco-friendly options, making it easier to integrate green practices into their projects.
Tax incentives play a crucial role in this shift. The Philippine government's Energy Efficiency and Conservation Roadmap, updated in 2023, offers fiscal benefits to developers who embrace sustainable practices. These incentives make green projects financially appealing, aligning economic interests with environmental goals and encouraging more developers to go green.
Take BluHomes by Aztala Corporation, for example. This project showcases the benefits of green residential developments by incorporating energy-efficient designs and water-saving technologies. Residents enjoy lower utility costs, making these homes attractive to both developers and buyers. It's a win-win situation that highlights the practical advantages of sustainable living.
Such projects not only reduce environmental impact but also offer financial benefits to residents. Lower utility bills are a significant draw for potential buyers, making these homes a smart investment. As more developers see the value in green building, the trend is likely to grow.
With government support and financial incentives, the future of residential development in the country looks increasingly green. Eco-friendly projects are becoming the norm, setting a new standard for sustainable living.
Sources: Inquirer, Department of Energy, Habitat for Humanity
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Central Luzon property prices will rise, but more slowly than in Metro Manila
Residential property prices in Central Luzon are rising, but not as quickly as in Metro Manila.
In Metro Manila, the demand for homes is fueled by urbanization and a dense population. This bustling city sold 40,555 condo units in 2023, a sign of a strong market comeback. The city's vibrant economy, especially in sectors like BPO and IT BPM, draws people in, boosting the need for housing.
Metro Manila's economic opportunities make it a magnet for job seekers, which in turn drives up housing demand. The concentration of jobs and activities here means property prices climb faster than in Central Luzon. The city is a hub for both local and foreign investments, thanks to its economic growth and infrastructure projects.
Investors are keen on Metro Manila's real estate, pushing prices higher. The limited land in central business districts adds to this, as fewer new condos are being completed. In 2023, the number of new condo completions in these areas dropped significantly, making existing properties more valuable.
Central Luzon, while experiencing growth, doesn't match the pace of Metro Manila. The region benefits from its proximity to the capital, but the economic pull isn't as strong. This means property prices rise, but at a slower rate compared to the bustling city life of Metro Manila.
For potential buyers, Central Luzon offers a more relaxed pace with slower property price increases. It's an attractive option for those looking to invest without the rapid price hikes seen in the capital. The region's growth is steady, providing a balance between investment potential and affordability.
Sources: Global Property Guide, BusinessWorld Online, BusinessWorld Online
10) Property prices in Nueva Ecija will grow more slowly than in other Central Luzon provinces
Nueva Ecija's property prices are growing slower than other Central Luzon provinces.
While the Philippines enjoyed a property boom from 2010 to 2018, Nueva Ecija lagged behind compared to places like Pampanga and Bulacan. These provinces have seen more investment and development, making them more attractive to buyers.
Investment in Nueva Ecija's real estate is also lower. Pampanga and Bulacan have drawn more investors due to their strategic locations and better infrastructure. This has naturally led to higher demand and rising property prices in those areas.
Population growth in Nueva Ecija is another factor. With fewer people moving in, there's less demand for housing. This, combined with fewer infrastructure projects, means the area isn't seeing the same economic buzz as its neighbors.
Real estate developers are less interested in Nueva Ecija, focusing instead on provinces with more potential for quick returns. Urbanization is slower here, which affects property values.
In contrast, Pampanga and Bulacan are buzzing with activity, drawing both local and international attention. Their growth is fueled by strategic advantages that Nueva Ecija currently lacks.
Sources: BusinessWorld Online, Inquirer Business, Global Property Guide
11) Pampanga's rental yields will rise as the expatriate community grows
Pampanga is quickly becoming a favorite spot for expatriates due to its thriving business process outsourcing (BPO) industry and skilled graduates from local universities.
Many expatriates moving to Pampanga choose to rent rather than buy homes. This is mainly because their stays are often temporary, and renting offers the flexibility they need. As a result, the demand for rental properties is rising, which is pushing rental yields higher.
Pampanga is also becoming more appealing with the development of international schools and amenities designed for expatriates. These facilities not only cater to the needs of the expatriate community but also make Pampanga a more attractive place for foreigners to live and work.
Local real estate agents have observed a noticeable increase in interest from expatriates, which is further boosting the demand for rental properties. This trend is supported by Pampanga's economic growth and ongoing infrastructure improvements, both of which are contributing to the rise in rental yields.
With more expatriates settling in, Pampanga is evolving into a vibrant community that offers a blend of local culture and international influences. This unique mix is drawing even more expatriates, creating a cycle of increasing demand for rental properties.
As Pampanga continues to develop, the growing expatriate community is expected to keep driving rental yields upward. This makes it an exciting time for potential property investors looking to tap into this dynamic market.
Sources: CSIS, BusinessWorld Online
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12) Property values in Cabanatuan City will rise with the completion of the Central Luzon Link Expressway
The Central Luzon Link Expressway is now complete, and it's a game-changer for Cabanatuan City.
This 66.4-kilometer road connects Tarlac City to Nueva Ecija, making travel much quicker and easier. With this new route, traffic on the North Luzon Expressway has eased, improving the overall connectivity in the region. This kind of infrastructure upgrade often leads to a rise in property values.
Take the Cavite-Laguna Expressway extension, for instance. It led to higher rental rates in nearby areas because of better access to industrial zones. Similarly, when the Plaridel Bypass Road in Bulacan was expanded, it sparked real estate development and increased land prices.
Central Luzon is already on the radar for its economic potential. It's one of the fastest-growing regions in the country, playing a big role in the national economy. This growth is likely to draw more property investments, which will further boost property values in Cabanatuan City.
With the expressway now in place, Cabanatuan City is more accessible, making it an attractive spot for investors. The improved infrastructure is expected to drive up property values as more people and businesses move in.
So, if you're considering buying property in the area, now might be a good time. The expressway is not just a road; it's a catalyst for growth and opportunity in Cabanatuan City.
Sources: The Transformative Impact of Infrastructure on Philippine Industrial Real Estate, Central Luzon's Real Estate Potential: Tilted to the Upside, Central Luzon's Economic Potential Further Boosted by Ayala Land's Integrated Estates
13) Smart home technology will be a standard feature in new residential developments
Smart home technology is quickly becoming a must-have in new homes.
In the Philippines, more people are jumping on the smart home bandwagon. By 2023, 10.4% of Filipinos owned at least one smart device, and this is expected to rise to 16% by 2026. This shift shows how much people are warming up to the idea of tech-savvy homes.
Filipinos are particularly drawn to smart devices that make life easier and save energy. These gadgets can be controlled with just a smartphone or a voice command. The buzz is especially strong in places like Central Luzon, where better infrastructure is making modern living more appealing.
Real estate developers are catching on to this trend. Ayala Land is already integrating smart features in its Central Luzon projects, like Altaraza and Cresendo. This is a smart move to align with what homebuyers now expect.
The media is also playing a role by showcasing the perks of smart homes, such as better security and cost savings. This kind of coverage is shaping what people want in a home, nudging developers to include these features in their new builds.
As more people see the benefits, the demand for smart homes is only going to grow. Developers are likely to keep up with this demand, making smart technology a standard feature in new homes.
Sources: MarkNtel Advisors, Inquirer Business, LightNOW Blog
14) Demand for affordable housing in Central Luzon will rise, prompting developers to prioritize budget-friendly projects
The demand for affordable housing in Central Luzon is on the rise.
With a population of over 12 million people as of the 2020 Census, Central Luzon is bustling. Many are leaving Metro Manila for this region to escape the high cost of living, which means more people are looking for budget-friendly homes. This shift is making affordable housing a hot commodity.
Central Luzon is becoming more connected thanks to government infrastructure projects. These improvements are attracting new residents and businesses, further increasing the need for affordable housing. The local economy is growing, especially in manufacturing and outsourcing, creating a middle class that needs affordable housing options.
Land prices are rising, making luxury developments less practical. Developers are now focusing on more affordable projects. There's a trend towards smaller, budget-friendly units, which fits perfectly with what people are looking for. Government incentives, like proposed changes to Republic Act 7227, are also encouraging developers to build affordable housing.
Central Luzon is a region with immense potential for property development. The combination of population growth, improved infrastructure, and economic expansion is creating a perfect storm for affordable housing demand. Developers are taking note and shifting their focus accordingly.
As more people move to Central Luzon, the demand for affordable housing will continue to grow. This trend is pushing developers to prioritize budget-friendly projects, making it an exciting time for the region's real estate market.
Sources: Lamudi, PSA Central Luzon Quickstat, BCDA News, Business Inquirer
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Remote work growth will boost demand for properties with home office spaces
Remote work is reshaping how we think about our homes.
In places like Central Luzon, people are now looking for homes with dedicated office spaces. This shift is all about finding that sweet spot between work and life, making it easier to work from home.
Many folks are leaning towards remote or hybrid work setups, which means they need homes that can double as an office. Real estate agents are catching on, showcasing homes with flexible layouts perfect for a home office.
The buzz around home offices is everywhere, with media highlighting perks like boosted productivity and no commute. This chatter is making more people interested in homes with office spaces.
Plus, with companies sticking to remote work for the long haul, the demand for these kinds of homes is only going up. It's a trend that's not just about convenience but also about adapting to a new way of working.
Sources: Outsource Accelerator, The McLemore Group
16) Interest in properties near outdoor recreational facilities will grow as people adopt a more health-conscious lifestyle
In 2023 and 2024, there's been a noticeable shift towards a health-conscious lifestyle, sparking interest in properties with outdoor recreational facilities.
People are increasingly drawn to homes with green spaces. In Central Luzon, for instance, there's a surge in demand for residential areas featuring lush greenery and open spaces. This trend highlights a preference for living environments that promote health, allowing residents to enjoy outdoor activities right at their doorstep.
Surveys reveal that many homebuyers now prioritize proximity to parks and nature trails. This aligns with a broader lifestyle shift towards healthy eating and outdoor activities. Being close to nature and having easy access to recreational facilities is becoming a key factor in choosing a property.
The wellness real estate market is booming, with new developments offering fitness amenities like outdoor gyms. In Central Luzon, residential projects are increasingly designed to support holistic health, providing residents with access to outdoor spaces and recreational facilities.
These trends reflect a growing awareness of the benefits of living in environments that support health and well-being. As more people embrace a health-conscious lifestyle, the demand for properties with outdoor amenities is expected to rise.
Sources: Punto, 9 Central Park Condos, Beauty Matter, Market.us
17) Urban migration will slow as more people opt for suburban living in Central Luzon
In Central Luzon, more people are choosing suburban living over city life.
With property prices soaring in Metro Manila, many are eyeing the suburbs as a more affordable alternative. The city’s high living costs and scarce land have nudged folks to explore options beyond the urban sprawl. Suburban areas, especially in CALABARZON, offer a range of housing choices that won’t break the bank.
Thanks to improved infrastructure like the North Luzon Expressway (NLEX), commuting from these suburban spots to the city has become a breeze. This ease of travel makes suburban living not just affordable but also convenient for those who still need to pop into the city now and then.
The government is also playing a part by backing suburban growth with incentives and funding for budget-friendly housing projects. This support has made the suburbs even more appealing. Plus, with the rise of remote work, many find they no longer need to be tied to city offices, making the suburbs an even more attractive option.
Suburban areas often boast better air quality and a more relaxed lifestyle, which is a big draw for those looking to escape the hustle and bustle of city life. The shift to remote work has been a game-changer, allowing people to enjoy the perks of suburban living without sacrificing their careers.
As more people embrace this lifestyle change, the trend of urban migration is expected to slow down, with suburban areas in Central Luzon becoming the new hotspots for homebuyers.
Sources: Richest PH, Asia News Network
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18) Interest in single-detached homes will drop as more people choose community living in townhouses
In Central Luzon, housing preferences are shifting towards townhouses over single-detached homes.
From 2022 to 2023, the construction of single-detached homes dropped by nearly 9%, while townhouses saw a 3% increase in development. This change highlights a growing interest in compact, community-focused living.
Central Luzon's urbanization and population growth are key drivers of this trend. Townhouses are becoming popular because they offer affordability and a sense of community, making them appealing to many buyers.
Gated communities and shared amenities add to the allure of townhouses. These homes often feature separate entrances and access to parks and community centers, providing both privacy and a sense of belonging.
Media coverage often highlights the benefits of community living, emphasizing how townhouses offer a balanced lifestyle. This has contributed to the increasing sales of townhouses compared to single-detached homes.
As more people opt for townhouses, the real estate market in Central Luzon is adapting to meet this demand, reflecting a broader shift in housing preferences.
Sources: PR Newswire, BusinessWorld Online, Property Source PH
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.