ILOILO CITY — Iloilo province has raced ahead of Metro Cebu in office leasing transactions for the first time, capturing nearly half of all provincial deals outside Metro Manila in the first quarter of 2026. The milestone cements Iloilo’s rise as the Visayas‑Mindanao region’s hottest property hub.
A Historic Quarter for Iloilo Office Space
Data released by Colliers Philippines at a property forum in Cebu showed Iloilo closed 16,000 square meters of office transactions from January to March. Cebu trailed at 9,000 sqm, while the combined provincial total reached 37,000 sqm. This marks the first time the city has outpaced its larger neighbor.
Research Director Joey Roi Bondoc attributed the leap to a supply‑driven surge. Iloilo simply had more ready‑to‑occupy Grade A office space available when demand from outsourcing firms spiked. Companies seeking large, contiguous floor plates of at least 1,000 sqm found exactly what they needed in the city’s growing business districts.
Megaworld Drives the Office Boom
Megaworld Corporation, the dominant office landlord in Iloilo, operates 13 completed towers offering 205,000 sqm of leasable space. Occupancy stands at 85 percent, well above the national average. The township environment of the 72‑hectare Iloilo Business Park provides a self‑contained ecosystem that appeals to multinational locators.
The company also raised the bar with Enterprise One and Two, the first LEED Gold‑certified office buildings in the province. This green infrastructure attracts global firms committed to sustainability targets. Bondoc said the availability of high‑quality space was the critical factor: “If you don’t offer more options, you limit occupiers’ choices.”
Why Locators Are Choosing Iloilo
Beyond square footage, Iloilo offers a compelling business case. A steady pipeline of skilled, English‑proficient graduates feeds the IT‑BPM sector’s workforce needs. Operational costs remain significantly lower than in Metro Manila or Cebu, from salaries to utilities and rent.
Lifestyle amenities play a part too. The city’s master‑planned roads, riverside esplanades, and dining scenes make it easier for companies to attract and retain talent. When employees enjoy their surroundings, productivity and retention improve. This holistic appeal has turned Iloilo into a preferred destination for both investors and workers.
Residential and Leisure Markets Follow
The office boom is pulling other property segments upward. Colliers reported that horizontal residential lot prices in Western Visayas have appreciated by 7 to 13 percent annually over the past decade. Strong OFW remittances continue to fuel demand for house‑and‑lot developments.
The hospitality pipeline is also swelling. VisMin is expecting 7,900 new hotel rooms between 2026 and 2029, with international brands accounting for 62 percent of that inventory. Iloilo’s improving airport and road connectivity positions it as a primary beneficiary of this tourism expansion.
A Friendly Rivalry with Cebu
While Iloilo won the first quarter, Cebu still holds the largest total office stock outside Metro Manila at 1.54 million sqm. Analysts expect both cities to compete aggressively for global capability centers and BPO firms over the next three years.
For landlords, the message is clear: provide flexible, cost‑efficient, and sustainable spaces to capture the next wave of occupiers. Iloilo’s breakout performance in early 2026 signals that it is ready to challenge traditional hierarchies and claim a larger share of the country’s property growth.
