Industrial property sector seen sustaining growth in 2026

By Beatriz Marie D. Cruz, Reporter

THE Philippines’ industrial property sector is expected to maintain growth this year amid strong demand, although corruption and red tape concerns pose risks to the outlook, analysts said.

Mindanao-based developer Damosa Land, Inc. (DLI) expects a “positive” year for the sector, driven by interest from both local and international investors, according to President and Chief Executive Officer (CEO) Ricardo F. Lagdameo.

“The Philippines’ industrial property market has shown high occupancy rates and rising demand for space, especially in logistics, manufacturing, and distribution facilities,” he said in an e-mailed reply to questions.

“This trend suggests continued momentum for the sector as economic activities expand and companies seek efficient locations for production and supply-chain operations,” Mr. Lagdameo added.

DLI owns Anflo Industrial Estate, a 63-hectare agro-industrial hub in Panabo City, Davao del Norte. As of end-2025, it hosts 24 locators from six countries, covering industries such as agro-processing, packaging, warehousing, cold storage, and manufacturing.

Gokongwei-led Robinsons Land Corp. (RLC) expects industrial space take-up to grow this year amid e-commerce demand and the need for modern facilities.

The developer’s subsidiary, Robinsons Logistix & Industrials, Inc. (RLX), plans to expand its modern warehouse portfolio nationwide, RLC Chief Strategy Officer Ramon S. Rivero said in an e-mail.

RLX currently operates 13 industrial facilities across Calamba, Laguna; Sucat and Muntinlupa City; Pampanga; and Rizal.

The continued promotion of the country’s economic zones by investment promotion agencies — including the Philippine Economic Zone Authority (PEZA), Board of Investments (BoI), Department of Trade and Industry (DTI), and Mindanao Development Authority (MinDA) — will also support industrial growth this year, Mr. Lagdameo said.

However, the recent corruption scandal involving government officials and private contractors could slow foreign expansions in the industrial property sector, according to property consultant PRIME Philippines.

“The resurfaced probe into infrastructure quality, alongside persistent concerns around corruption and red tape, has further weighed on multinational interest as reflected in the investment decline,” PRIME Philippines Founder and CEO Jettson P. Yu said in an e-mail.

“While domestic expansions from key warehousing demand drivers continued through 2025, softer foreign manufacturing appetite will put a dent on the expansion of the industrial sector in the Philippines,” he added.

Approved foreign investment pledges in the third quarter fell by 48.7% to P73.68 billion, Philippine Statistics Authority data showed.

Other challenges for the industrial sector this year include the lack of reliable power and utilities, competition for prime industrial land, and fluctuations in construction costs, Mr. Lagdameo said.

“To navigate these risks, we are emphasizing long-term infrastructure planning, leveraging strategic location advantages, and strengthening partnerships with government, utility providers, and industry stakeholders to create a reliable, investment-ready environment for locators,” he noted.