Three key industrial property sectors – storage, manufacturing, and pharmaceuticals—are currently capturing attention with notable demand for property development in the Philippines, despite heightened global volatility.
This was one of the main takeaways from the latest briefing by property, real estate management, and consultancy firm Santos Knight Frank (SKF). “This is the most volatile we’ve seen in recent history,” described Rick Santos, Chairman and CEO of Santos Knight Frank.
“The current geopolitical climate is marked by rapid and unpredictable changes, creating uncertainty for investors, businesses, and consumers alike. Despite this, the Philippine real estate sector continues to demonstrate remarkable resilience, anchored by strong market fundamentals, proactive government policies, and growing domestic demand,” he said.
According to its study, the industrial hotspots where storage, manufacturing, and pharmaceutical industries converge are in Pampanga, Laguna, Cavite, and Batangas.
CALABARZON and Central Luzon are the primary regions attracting strong interest from foreign enterprises seeking operational efficiency and access to critical infrastructure. Miranda explained that Regions 4A and 3 command the demand for industrial facilities due to their proximity to ports, roads, industrial parks, and economic zones.
These areas are also driven by relatively lower rents for available standard warehouses, ranging from P230 to P290 per square meter per month. Miranda highlighted the surge in data center developments in the first half of 2025 alone.
The proposed 99-year lease bill for foreign investors is expected to align the Philippines with regional practices and attract more foreign investment into the industrial sector, including warehouses and cold storage facilities. This bill would extend the maximum lease term for foreign investors from the current 75 years to 99 years.
The country’s cold storage capacity is currently estimated at 320,000 metric tons. Miranda pointed out Cebu as a key area attracting increased investment in storage facilities.
He also cited the Department of Agriculture’s plan to build 99 cold storage facilities, each with about 2,800 to 3,500 pallet positions. The department has allocated P3 billion for this initiative.
Additionally, data centers are emerging as a growing sector in the country, with a capacity of 900 megawatts in the pipeline, he added.
