By Beatriz Marie D. Cruz, Reporter
THE RECENTLY approved economic zones (ecozones) in Batangas, Bohol, and Bacolod are expected to spur demand for office, residential, and retail developments in surrounding areas, driving land appreciation and income growth, according to property consultants.
“The announcement of new IT (information technology) parks or the expansion of existing ones introduces new job markets to the area and encourages the emergence of complementary developments,” Jamie Dela Cruz, research manager at real estate agency KMC Savills, Inc., said in an e-mail.
The increasing employment opportunities in these ecozones will raise demand for new residential, commercial, and retail developments, she said.
“People will gravitate to where the jobs are located, as long as the support services are available for business and residential locators,” Roy Amando L. Golez, Jr., director for research and consultancy at Leechiu Property Consultants, said in an e-mail.
“With the increased population, land around the ecozones will naturally start to develop, especially as income grows,” Mr. Golez added.
President Ferdinand R. Marcos, Jr. approved four new ecozones in the first half of the year, with projected investments totaling P3.2 billion, the Philippine Economic Zone Authority (PEZA) said last week.
Two of these ecozones are expansions of a manufacturing zone in Batangas, while the other two are new IT parks in Tagbilaran City and Bacolod City in the Visayas.
Ecozone developments are also likely to attract foreign investors and new locators due to improved procedures and incentives in the area, Ms. Dela Cruz said.
“They facilitate easier business operations by offering incentives and streamlining processes, helping attract BPOs (business process outsourcing) firms and foreign investments. This is evident in the leasing commitments seen in IT parks, even as their PEZA registrations are still underway,” she noted.
“The sustained demand from the IT-BPM sector in key provincial cities such as Bacolod and Bohol indicates that office rental rates are likely to remain stable, with the potential for moderate increases.”
The government also stands to benefit from the new ecozones through higher tax collections amid improved land values, Mr. Golez said.
To accommodate the increased need for land and space, local government units must improve their land use zoning near these ecozones, Mr. Golez noted.
“That means there is a need to create communities for commercial, logistics, residential, retail, and some institutional facilities to ensure long-term organized growth,” he said. “Ultimately, this will push up land values and rental rates in the area.”
A total of 32 ecozones have been proclaimed under the Marcos administration, generating around P13.41 billion in investments.