Market Overview
Laoag City Comercial Makets
Laoag City’s commercial real estate market has shown steady growth over the past year, driven by its role as the capital of Ilocos Norte and continued infrastructure development. Affordable property prices compared to metropolitan hubs are attracting investors and businesses, especially in education, healthcare, retail, and tourism.
Approved building permits in Laoag remain the highest in Ilocos Norte, reflecting strong construction activity. Rental yields are modest but stable, while vacancy rates offer room for improvement. Short-term rentals such as Airbnb show seasonal fluctuations, with peak demand during May, July, and December.
When compared with Angeles City (Pampanga) and Baguio City, Laoag offers significantly lower entry prices but lags in rental yields and absorption rates. Angeles and Baguio benefit from mature ecosystems, yet Laoag’s emerging market shows strong potential for growth.
Key Insights
- Demand Drivers: Education, healthcare, tourism, OFW remittances, and limited BPO presence.
- Supply Side: Laoag leads Ilocos Norte in approved building permits, with new commercial and institutional developments.
- Seasonality: Airbnb and short-term rentals show peak occupancy in May, July, and December.
- Risks: Oversupply risk if construction outpaces demand; lending rate changes; local government regulatory adjustments.
- Opportunities: Affordable entry prices, expanding infrastructure, and gaps in retail, wellness, and education spaces.
