Naga City: A Rising Real Estate Investment Hub in Bicol
Naga City, the historic center of Camarines Sur, is increasingly attracting residential and commercial investors. Once mainly known as the “Pilgrim City,” Naga today boasts one of the fastest-growing economies in the Philippines. The city has averaged about 6.5% annual economic growth since the 1990s and now accounts for roughly 21% of all investment in the Bicol Region. Higher-than-average household incomes and a young workforce further fuel demand: 42% higher than the national average, with nearly 65% of Nagueños in the working-age group. All this underpins a healthy real estate market with rising land values. The city government reports a housing backlog of 14,840 units (as of 2019), indicating strong residential demand. In short, Naga’s booming regional economy and limited housing supply have begun to drive up land prices locally, a trend expected to continue as development accelerates.
Figure: President Marcos has ordered expansion of Naga Airport (extending its 1.3 km runway to 2.0 km) and revival of the PNR Bicol Express rail. These projects will allow larger aircraft (e.g. A320s) to serve Naga and cut travel time to Metro Manila to ~4 hours. – Source: Daily Mirror, March 2025.
Steady Land Price Appreciation. Across the Philippines, real estate values in growth cities have climbed steadily. Industry reports show suburban house-and-lot communities nationwide gaining 4–7% annually (2016–2023), with raw land plots rising even faster (7–15% per year). Naga’s market follows similar dynamics. Prices remain far lower than Metro Manila or Cebu, but the gap is narrowing. Recent listings suggest city lots in Naga often trade in the ₱15,000–₱25,000 per sqm range, while newer suburban developments command higher rates. As major projects come online, analysts expect Naga’s land values to continue appreciating. Colliers Philippines notes that as suburban and provincial communities mature, investors see stronger returns – especially in expanding urban corridors. With Naga’s role as a regional hub, many developers now view it as an emerging “next-wave” city. In fact, global real estate consultants emphasize the opportunity outside Metro Manila: Colliers advises foreign hotel and retail brands to eye locations near new airports and convention centers beyond the capital – a category that increasingly includes Naga.
Major Infrastructure Projects Boosting Naga’s Value
Significant infrastructure developments are rapidly improving Naga’s connectivity and livability, further underpinning land appreciation:
Naga Airport Expansion: The Department of Transportation plans to extend the Naga City Airport runway from 1.3 km to 2.0 km. Phase 1 (site works and earthworks) began in 2025, with full expansion targeted soon after. This will allow larger jets (Airbus A320s, etc.) to land, making Naga an alternative gateway for Bicol tourism and trade.
South Luzon Expressway (SLEX) Extensions: On Luzon’s spine, the new SLEX TR-4/5 tollways are linking Metro Manila to Bicol. Construction of TR-4 (from Calamba toward Lucena) is underway, and TR-5 planning is active. Once completed, these expressways will dramatically cut travel time and logistics costs between Luzon and the Bicol peninsula.
Proposed Naga–Legazpi Expressway: Legislators are advocating a new Bicol expressway connecting Naga to Legazpi (Albay). This route alone would serve about 2.2 million people in the region. With private consortiums already involved, such an expressway could preempt delays in the SLEX Bicol extension and directly tie together the region’s two largest cities.
PNR Bicol Express (Rail): The long-gestating revival of the Philippine National Railways South Long Haul (Bicol Express) aims to restore train service from Manila to Naga (and beyond). Officials project a four-hour Manila–Naga trip once complete. This rail link will improve labor mobility and tourism, complementing road and air connections.
Local Development Zones: Within Naga, the city government has aggressively developed new growth zones (Sta. Cruz, Balatas, Almeda, Riverside, etc.). In recent years, Naga has built new schools, a health office, and an event center in these areas, along with roads and utilities. These projects expand the city’s commercial footprint and open up fresh subdivisions, meeting residential demand closer to emerging job centers.
IT and Industrial Parks: Several technology and industrial estates anchor the regional economy. Notable parks include the Camarines Sur Information Technology Park, Naga City IT (Cyber) Park, Naga City Technology Park, and Naga Valley Industrial Park. These ready sites have attracted BPO/IT locators and light manufacturers. Indeed, Naga is targeting 28,000 IT-BPM jobs by 2028, reflecting growth in this sector. Existing BPO firms (IBM, Concentrix, Sutherland, etc.) already operate in Naga. The presence of these parks bolsters office and housing demand, further lifting property values.
Each of these projects substantially increases Naga’s appeal. Improved transportation links from Manila (road, rail, air) make the city accessible to investors and tourists alike. Local infrastructure and government-initiated zones ensure that new subdivisions and commercial centers can grow in an organized way. In the long run, these upgrades are expected to elevate land values as demand rises.The table below summarizes key infrastructure projects affecting Naga:
Project | Type | Route/Area | Status/Timeline | Potential Impact |
Naga Airport Expansion | Aviation (Runway) | Naga City Airport | Phase 1 (earthworks) by 2025 | Extend runway to 2 km for A320; boost connectivity & tourism |
SLEX TR-4/5 | Expressway | Manila–Bicol (via Quezon) | TR-4 (Lucena→Quezon) underway; TR-5 planned (Lucena→Bicol) | Shortens Manila–Bicol travel; lowers transport costs |
Naga–Legazpi Expwy | Expressway | Naga ↔ Legazpi | Proposed (advocated by lawmaker) | Connects two largest Bicol cities (pop ~2.2M); spurs regional commerce |
PNR Bicol Express | Rail | Manila↔Bicol (via Naga) | Planned; targets ~4-hour Manila–Naga trip | Improves access to Metro Manila; promotes trade & tourism |
Local Growth Zones | Urban Dev (Health, Edu, Comm) | Naga outskirts (Sta. Cruz, Balatas, etc.) | Ongoing (new schools, health center, event center completed) | Decentralizes services; opens new residential/commercial areas |
IT/Industrial Parks | IT/BPO, Industry | Naga/Camarines Sur | Existing (ready for locators) | Supports BPO/IT growth; diversifies employment & real estate demand |
Each of these projects substantially increases Naga’s appeal. Improved transportation links from Manila (road, rail, air) make the city accessible to investors and tourists alike. Local infrastructure and government-initiated zones ensure that new subdivisions and commercial centers can grow in an organized way. In the long run, these upgrades are expected to elevate land values as demand rises.
How Naga Compares to Other Growth Corridors
In strategic terms, Naga is emerging alongside other Philippine growth regions (Calabarzon, Cebu, Davao, etc.) – but with notable advantages. Unlike Metro Manila, Naga still offers lower land prices and less development competition, yet with improving infrastructure. Its Metro Naga population (around 1 million in the city-plus 16 neighboring towns) provides a sizable consumer base. In fact, Naga’s economy is outperforming some regional peers: it consistently tops national competitiveness rankings. The Department of Trade & Industry named Naga the Most Competitive Component City (among non-HUCs) in the Philippines for 2021–2024. It scored especially high in Infrastructure, Resiliency, and Economic Dynamism. By contrast, many other “next-wave” cities are still building their business ecosystems. The Philippines’ startup index also reflects Naga’s momentum: StartupBlink ranked Naga as the 5th best startup ecosystem city in the country and 831st globally in 2024 – a rare distinction outside the usual urban hubs.
On the flipside, land prices in Bicol remain well below Luzon and Visayas levels. For example, a prime lot in suburban Naga might still go for only ₱20,000–₱30,000 per sqm, whereas comparable lots near Manila often exceed ₱100,000/sqm. This affordability gap – combined with catch-up growth – means capital invested in Naga properties has greater upside. When regional economic expansions are compared, Naga benefits from both local government efficiency and expanding regional budgets. In Camarines Sur (Bicol’s largest province), Naga accounts for the lion’s share of business activity, whereas other provincial centers may lack comparable clout. In short, Naga offers a smaller-city price with big-city prospects.
Investor analyses echo this positive view. Colliers Philippines has highlighted that developers are increasingly venturing outside Metro Manila into suburbs and provinces. Its 2025 outlook notes accelerating “leisure-themed” and house‑and‑lot projects in places like Calabarzon, Visayas, and Mindanao – trends that bode well for Naga as Bicol’s gateway. Indeed, Colliers specifically cites opportunities in “upcoming convention centers and soon-to-be modernized airports outside the capital region,” which aligns with Naga’s upgrades. Leechiu Property Consultants likewise points to a Philippine economy that is growing around 5–6% and entering a new phase of regional diversification, suggesting secondary cities will benefit. Moreover, international advisors emphasize the Philippines’ stable outlook and continued tourism and OFW remittance inflows as tailwinds for real estate. Altogether, sentiment among global firms is that markets like Naga are poised to ride the country’s growth wave in the coming years.
Why Bicolanos Should Invest Locally
For local investors – especially those from the Bicol region – Naga City stands out as the top place to park real estate capital. Naga is already the commercial and cultural heart of Bicol, with extensive retail, education, and healthcare infrastructure. It remains far easier to monitor or visit a hometown investment than one across Luzon, while still capturing the upside of national growth. In practical terms, recent years have seen a steady inflow of Bicolanos and other Filipinos buying in Naga: retirees, OFW earners, and professionals returning home all seek housing in a city they trust. The strong track record of governance and competitiveness (4th straight year as top component city) gives confidence that local projects will be delivered on time.
Furthermore, Naga’s growth isn’t mature yet, so early investors can get in ahead of bigger names. Many Bicolanos remember when property in Camarines Sur was cheap; now Naga is following a pattern seen earlier in places like Cavite or Iloilo. With new malls, subdivisions and mixed-use developments sprouting, price appreciation is already visible. Those who bought lots or condos a few years ago are now seeing healthy equity gains. The housing backlog guarantees ongoing demand – many locals still rent or live with relatives while waiting for affordable homes. By investing in Naga, local capital also contributes to regional economic empowerment, keeping growth benefits within Bicol rather than flowing solely to Luzon or foreign investors.
Outlook and Conclusion
In summary, Naga City’s real estate market is buoyed by robust economic fundamentals and a wave of infrastructure modernization. Land and property values have been rising and are projected to climb further as major projects come online. The combination of completed/ongoing airport expansion, expressway links, and local development zones will significantly enhance Naga’s connectivity. According to analysis by Colliers and others, these trends mirror successful growth corridors elsewhere in the Philippines. StartupBlink’s ranking jump also reflects a maturing business environment. For investors – from Manila to abroad – Naga offers an attractive blend of strong demand drivers and still-affordable pricing. For Bicolanos in particular, it means keeping capital in the region’s economic engine.
Given these factors, many experts consider now a prime time to invest in Naga City real estate. The city’s competitive city governance, young consumer base, and improving infrastructure create a “sweet spot” of opportunity. Whether for residential subdivisions, rental apartments, or retail/commercial projects, Naga stands out as the Heart of Bicol’s growth – and a smart bet for future returns.
Sources: Official Naga City reports; Colliers Philippines 2024 outlook; BusinessMirror coverage of infrastructure; StartupBlink global index; Leechiu Property Consultants, Outsource Accelerator (BPO firms).
