6 Factors Driving the Growth of the Real Estate Market in Cavite and Batangas31 July 2023
Nothing can be more progressive than the provinces of Cavite and Batangas in terms of economic growth and development. In fact, their real estate markets have been growing rapidly in recent years. Located in the CALABARZON region, these two provinces are becoming increasingly attractive to homebuyers and real estate investors due to their proximity to Metro Manila and a number of major development projects.
So it’s not surprising if you plan to invest in Cavite and Batangas. But, to ensure that you have made the right choice, it is essential to understand their local market trends to determine which of these provinces is best for real estate investments.
Cavite and Batangas: A Growing Real Estate Hub
Over the past few years, these two provinces' robust economic growth has contributed to their rising population. As people seek employment and business opportunities in Batangas and Cavite, the demand for residential properties has also increased. This has also led to a surge in real estate development in the province, with new projects and developments being announced all the time. Thus, these two provinces are good places for real estate investment property.
Batangas is a province with a strong economic performance. Its gross domestic product (GDP) grew by 12.5 percent in 2021, the fastest among the provinces in CALABARZON. This province is also home to a number of major industries, including manufacturing, tourism, and agriculture. These industries provide a strong foundation for economic growth, which will benefit the province in the coming years.
Similar to Batangas, the province of Cavite is also a hotbed for investment in the CALABARZON region. They also contributed 24.5 percent to the region's economy, making it attractive for businesses and investors. As a result, it created more job opportunities, which lead to an increased demand for housing and commercial real estate in the province.
What are the Local Market Trends in the Real Estate Market of Cavite and Batangas?
Remarkably, the real estate markets of Cavite and Batangas are proliferating, and they offer a number of opportunities for investors. Here are some of the local market trends in the real estate market of Cavite and Batangas:
1. Proximity to Metro Manila
Cavite and Batangas are located just south of Metro Manila, making them a convenient option for people who want to live outside the city but still have easy access. This proximity to Metro Manila is one of the huge factors driving the real estate market growth in these provinces.
2. Major Development Projects
There are many major development projects underway in Cavite and Batangas, including the Cavite-Laguna Expressway (CALAX), the Manila-Cavite Expressway (CAVITEX), and the Subic-Clark-Tarlac Expressway (SCTEX). These projects are expected to boost economic activity in the region and create jobs, which will further drive demand for real estate.
3. Affordable Prices
Real estate prices in Cavite and Batangas are still significantly affordable compared to other parts of Metro Manila. So, if you are looking for affordable house and lot properties, these provinces are attractive options for first-time homebuyers and investors.
4. Diversified Industries
Both Cavite and Batangas have a diverse range of industries, including manufacturing, tourism, and agriculture. This diversity of industries provides a strong foundation for economic growth, which will benefit the real estate market in these provinces.
5. Increasing Population
The populations of Cavite and Batangas are growing rapidly. This ever-increasing population demands new housing, commercial, and industrial space.
6. Infrastructure Development
The governments of Cavite and Batangas are investing in infrastructure development, such as roads, bridges, and airports. This infrastructure development will make it easier for people to live, work, and do business in these provinces, which will further boost the real estate market.
Real Estate Market Impacts of the Local Market Trends for Cavite and Batangas
Overall, the local market trends in Batangas and Cavite are having a positive impact on the real estate market in these provinces. The economic growth and the increasing demand for housing are driving up prices and attracting investment. The diversification of the real estate market is also providing more options for buyers and sellers.
Increased demand for housing
For one, the growing population of Batangas and Cavite is driving up demand for housing. The population of Batangas is expected to grow by 2.5 percent in 2023, and the population of Cavite is expected to grow by 2.2 percent. Several factors, including the strong economic performance of these provinces and the proximity to Metro Manila drive this growth.
Increased investment in real estate
Second, the solid economic performance of Batangas and Cavite is attracting investment from both local and foreign investors. This investment is used to develop new residential, commercial, and industrial properties. In 2022, the total investment in real estate in Batangas and Cavite was estimated to be USD 2 billion.
Diversification of the real estate market
Third, the growing economy of Batangas and Cavite also leads to a diversification of the real estate market. There is now a demand for a broader range of properties, including luxury homes, affordable house and lot for sale units, condominiums, and industrial space. This diversification is providing more options for buyers and sellers.
Lastly, the governments of Batangas and Cavite are investing in infrastructure development, making it easier for people to live, work, and do business in these provinces. This is also having a positive impact on the real estate market. In 2022, the governments of Batangas and Cavite invested USD1 billion in infrastructure development.
How to Navigate the Real Estate Market in Cavite and Batangas?
If you are considering investment properties in these provinces, research, understand the risks, and follow these tips before doing real estate transactions.
Diversify your portfolio.
In Cavite and Batangas, consider investing in a mix of residential real estate, rental property, and industrial real estate to spread risk and generate income.
Keep updated on market trends.
As a real estate investor, you must regularly track real estate prices, property appreciation, and housing projects in the region. Utilize real estate platforms and expert advice to make well-informed investment decisions.
Explore Real Estate Investment Trusts (REITs).
Consider real estate investing in publicly traded REITs, offering a chance to participate in large-scale real estate developments without direct ownership. Research their performance and stability.
Leverage foreign investments.
With foreign investments flowing into the National Capital Region, explore real property opportunities in Cavite and Batangas to benefit from the region's economic growth.
Engage with local government and developers.
Stay connected with local authorities and real estate developers for insights on upcoming projects, industrial parks, and infrastructure development that can impact property values and opportunities.
Whichever you choose, Lumina Homes have developed a wide range of residential properties in Cavite and Batangas. We have Lumina Tanza in Cavite and Lumina Batangas, Lumina Lipa, Lumina Tanauan, Lumina Bauan, and Lumina Rosario in Batangas.
So, there are a lot of options you can choose from if you are looking for an affordable house and lot Philippines. Get in touch with accredited Lumina sellers near you for more info and queries.
Try Lumina Homes' loan calculator and get an estimate computation for your preferred Lumina property and home model.