Market Summary Overview
Iloilo City’s condominium and apartment market has shown steady and promising growth over the last year, with market dynamics driven by robust demand from both local investors and Overseas Filipino Workers (OFWs), who continue to invest their remittances into real estate. Residential projects in prime locations such as Megaworld’s Iloilo Business Park, including high-selling properties like The Pinnacle and Saint Honore, exemplify strong sales performance in premium developments. The city benefits from Western Visayas’ healthy GDP growth of 7.2% in 2023 and sustained economic activity supported by infrastructure developments.
Rental yields are solid due to growing demand from urban professionals, students, and BPO employees. Iloilo is becoming an attractive business process outsourcing (BPO) hub, fueling demand for rental accommodations and improved office spaces. The city now hosts 118 IT-BPM companies employing 47,200 full-time employees as of 2024, representing dramatic growth from just 15 firms with 11,000 employees in 2014. Despite increasing supply from new developments—with building permit applications rising significantly—the market has so far maintained a balance between demand and supply, avoiding major oversupply issues seen in other metro centers. Infrastructure projects like the Panay-Guimaras-Negros Inter-Island Bridge (₱187.54 billion project, construction 2026-2028) and the Iloilo-Capiz-Aklan Expressway (₱126 billion project) are expected to boost connectivity and long-term property values, positioning Iloilo as a competitive regional property market.
Key Market Insights
Demand Drivers:
o OFWs are a major source of investment capital for residential developments.
o Growing BPO sector catalyzes demand for condominiums as well as office spaces, with 118 companies creating 188,800 indirect jobs.
o Increasing student population and urban migration support rental demand.
o Infrastructure enhancements improve connectivity and overall city appeal.
Supply-side Factors:
o Strong pipeline of new condominium projects, especially in areas like Iloilo Business Park and Mandurriao.
o Building permits have surged, indicating rising construction activity.
o Noted projects include Enterprise One and Two office buildings (2025 completion).
o Inventory remains well-absorbed with strong sales performance in premium projects.
Risks & Opportunities:
o Potential risk of oversupply as new projects enter the market, although currently balanced.
o Regulatory environment remains stable, but interest rates may affect buyer affordability.
o Infrastructure projects present long-term upside potential for property appreciation.
o Rental yields remain attractive relative to national averages (Philippines average: 5.12%).
Implications for Investors and Developers
Iloilo City stands as a strong emerging market for condominium and apartment investments with sustainable rental demand driven by economic diversification and population trends. Developers should focus on:
- Delivering high-quality, integrated residential projects near business districts and transport corridors.
- Catering to OFWs, BPO employees, and students with flexible payment plans and desirable amenities.
- Monitoring supply pipeline closely to avoid saturation but capitalizing on infrastructure-induced growth.
- Emphasizing sustainable and green building features in line with global ESG trends to attract discerning investors.
Investors can expect moderate price appreciation (around 5-8% annually) and solid rental yields (around 5.5%-6%), making Iloilo a competitive alternative to larger metro markets, with less risk of oversupply and more room for growth thanks to ongoing infrastructure expansions and BPO growth.
Sources and References
- Philippine Statistics Authority (PSA), “Western Visayas Economic Growth Soars to 7.2% in 2023”
- Panay News, “Iloilo City’s BPO Industry Soars; From humble beginnings to unprecedented growth,” February 2025
- Philippine News Agency, “Construction of Panay-Guimaras-Negros bridges on track,” March 2025
- DotProperty Philippines, Iloilo City condominium market data, 2024-2025
- Reddit Philippines Investment Community, Bacolod City market analysis, May 2025
- Global Property Guide, “Gross rental yields in the Philippines: Manila and Cebu,” March 2025
- Business Inquirer, “PH real estate 2025: Poised for growth amid shifting dynamics,” 2024-11
- Daily Guardian, “Iloilo real estate market still viable on strong demand from OFWs, investors,” 2024-09
- Colliers Philippines reports and market data, 2024-2025
- Local government and building permit office data, Iloilo City, 2024-2025
