MAJOR port expansions and road infrastructure projects in the Visayas and Mindanao could improve the investment prospects of industrial properties as transport connectivity becomes an increasingly important consideration in site selection, according to property consultancy Savills Philippines.
In a report released on Wednesday, Savills said access to ports, logistics networks, and major markets influences industrial property values, with the potential impact depending on the development stage of infrastructure projects.
“Industrial real estate is a business of movement. It is an integral part of the logistics supply chain. The value of an industrial location is determined by what it can reach, how efficiently it connects to markets, and how that connectivity changes over time,” Savills Philippines General Manager Gerard Thomas S. Padriga said.
The consultancy said national port-system cargo throughput rose by 6.6% year on year to 308.5 million metric tons in 2025, with ports outside Metro Manila accounting for a growing share of freight volume.
Savills said expanding port capacity and improved cargo-handling efficiency could increase the appeal of nearby industrial properties.
“As terminal capacity grows and handling efficiency improves, the industrial land surrounding these gateways becomes more productive, which can also unlock land values in the surrounding areas,” the consultancy said.
In Cebu, Savills identified the P16.93-billion New Cebu International Container Port in Barangay Tayud, Consolacion, as a major infrastructure project expected to influence industrial property development along the province’s northern corridor.
The project involves a 25-hectare (ha) reclaimed island, a 500-meter berth with a depth of 12 meters, and facilities designed to accommodate vessels with a capacity of 2,000 twenty-foot equivalent units (TEUs).
Funded by the Export-Import Bank of Korea’s Economic Development Cooperation Fund, the project is targeted for completion in the second quarter of 2028, according to the consultancy.
Savills also identified the adjacent 42-ha Priland Light Industrial Park and the planned Metro Cebu Expressway Segment 2, which is intended to improve connectivity between Mandaue, Consolacion, and Danao.
In Iloilo, the consultancy cited the Visayas Container Terminal, for which listed port operator International Container Terminal Services, Inc. secured a 25-year operating concession in 2024.
The 20-ha terminal serves industrial areas, including the Leganes Industrial Growth Center, according to Savills.
The consultancy also identified the proposed 210-kilometer Iloilo-Capiz-Aklan Expressway and the 33-kilometer Panay-Guimaras-Negros Island Bridges as projects that could improve regional transport connectivity.
In Mindanao, Savills pointed to road developments and port expansion projects in Davao and Cagayan de Oro as factors that could influence industrial property prospects.
Among these is the 45.5-kilometer Davao City Bypass Road, which is intended to improve connectivity between Toril in Davao City and Panabo City.
“The Davao City Bypass at 45.5 kilometers connects Toril in Davao City to Panabo City. Upon full completion, it is designed to reduce travel time between the two points from one hour and 44 minutes to 49 minutes,” Savills said.
The consultancy said the potential effect of infrastructure projects on industrial property values would depend partly on their stage of development.
According to Savills, the effects of completed infrastructure projects may already be reflected in prevailing land values, while proposed developments remain exposed to procurement and right-of-way delays.
“Across all four markets, the sites that present the strongest industrial real estate case are those where improving gateway access, suitable land, and identifiable occupier demand converge at the same point in time,” Savills Philippines Executive Director for Investment Services Quirino Teo, Jr. said.
“Identifying that convergence before it is fully reflected in market pricing is where the real estate opportunity lies,” he said. — Juliana Chloe A. Gonzales