Decentralizing without the distance in Cavite
CAVITE’S growth prospects are anchored by significant commercial developments and key infrastructure projects.
Nestled just south of Metro Manila, Cavite is rapidly emerging as a prime investment hotspot in the Philippines, fueled by ambitious public infrastructure projects and substantial commitments from leading developers.
On the public side, the province is benefiting from various infrastructure initiatives. The LRT-1 Cavite Extension will move onward to Bacoor, improving commuter access from the west of Metro Manila to Cavite. The continuing buildout of Cavite-Laguna Expressway (CALAX) will also be reinforcing Metro Cavite’s inter-province connectivity with Laguna, extending from Biñan all the way to Kawit. Most importantly, Bataan-Cavite Interlink Bridge will position Cavite as the gateway not only from National Capital Region (NCR), but also for North Luzon.
Complementing these are major private investments from top-tier developers. Ayala Land is spearheading Evo City in Kawit, featuring new office spaces for lease as of 2025 and a mall slated to open by 2026, alongside the development of Vermosa in Imus, home to the country’s largest Landers Superstore. Further south, Megaworld is expanding its luxury residential footprint with Maple Grove in General Trias, the Arden Botanical Estate spanning Trece Martires and Tanza, and its commercial legacy with Southwoods City in Carmona. Villar Land’s expansive Villar City is set to extend the horizon of commercial developments in Cavite with various districts planned in its expanse. Lastly, the redevelopment of Island Cove is also expected to reintroduce more commercial developments into the market in Kawit.
With no pipeline developments in the next two to three years, Cavite’s office occupancy is expected to mirror southern NCR districts.
With robust investments in retail landmarks and residential communities, amplified by the development of commuter and vehicle infrastructure, Cavite’s office sector is set to be rejuvenated. Fundamentally, Cavite is still a developing office market with a limited stock of office supply amounting to approximately 180 thousand square meters (sq.m.) with no new pipeline developments to reinforce this within the next two to three years. However, with pre-pandemic offices built to cater to the southern expansion of Philippine Offshore Gaming Operators (POGO’s), compared to other previous prospect POGO hubs such as the Bay Area and Alabang, Cavite was less insulated against the POGO exodus. This is because Bay Area and Alabang were less reliant on business process outsourcing’s (BPO) and POGO’s given demand from traditional logistics firms due to Bay Area’s proximity to Manila Port, as well as the government’s flight-to-quality initiative as they vacate their decades old office buildings for newer POGO-vacated buildings.
While current occupancy is estimated at 65% for Cavite, its office market recovery is set to follow after the recovery of these districts, buoyed by BPO expansions. Based on internal requirements nationwide outside of NCR in 2025, Cavite received majority of inquiries at almost ¼ of the annual total with significant inquiries from both traditional firms and the IT-BPO sector. Furthermore, recent significant take-ups have reached between 3 thousand to 4.5 thousand sq.m., with select prospects eyeing to reach 5-digits of space take-up, taking advantage of the current tenant’s market.
With more than half of office inquiries being expansion-related, cost competitiveness, proximity to Metro Manila, and access to a robust workforce are key advantages for Cavite.
With expansions becoming most prevalent in 2025 at 59% of inquiries nationwide, Metro Cavite is poised to absorb decentralization initiatives primarily from established IT-BPO companies in Metro Manila due to its adjacency. For example, the closest office development, CBC Asia Technozone, is just around a kilometer away from the border of Las Piñas.
The benefit of this short distance from NCR is most felt through cost. By migrating just one kilometer south of Las Piñas, occupiers are exposed to lower minimum wages at P550-600/day as opposed to NCR’s P695/day. This lower mandated wage floor has created a significant difference of 32.7% in average monthly wages between the two regions. At the same time, compared to NCR’s southern office districts such as Makati, Alabang, BGC, and the Bay Area, Metro Cavite’s office lease rates exhibit a clear cost advantage, a boon for cost-conscious tenants.
Office tenants are also strategically tapping into Cavite’s talent pool to pursue “reverse migration” as a significant portion of Metro Manila’s workforce commutes from Cavite. By total population, key cities such as Bacoor (661 thousand) and Dasmariñas (744 thousand) surpass Muntinlupa (552.2 thousand), Taguig (309.7 thousand), and Pasay (453 thousand). Outside of Metro Manila in Luzon, Cavite also features the second largest density of higher education institutions (82), primarily concentrated in Dasmariñas, Silang, and Bacoor. With overall population in Cavite growing by 1.51% annually from 2020-2024, only second to Rizal by province in Luzon, more residents from outside of Cavite are expected to gravitate towards the continuously developing township developments scattered across the province, collectively expanding and sustaining its talent pool.
Although Cavite’s office market remains in a gradual recovery phase, the convergence of prominent commercial investments, major connectivity projects, and a strengthening demand profile is steadily improving the province’s prospects.
Jet Yu is the founder and chief executive officer of PRIME Philippines, a commercial real estate advisory firm.
