Is Tacloban the Next Big Thing in Philippine Real Estate?

About the image: The San Juanico Bridge connects the islands of Samar and Leyte. It spans 2.16 km (1.34 mi) above the salty waters of San Juanico Strait. The project started in 1969 and completed in 1973. ts construction energized the Eastern Visayan region.

This Philippine Hidden Gem is Being Polished to Sparkle

Tacloban City, the capital of Leyte, has come a long way from its wartime past and the devastation of Typhoon Haiyan, aka Typhoon Yolanda in 2013. Instead of staying down, the city has bounced back with a serious makeover. Thanks to government and international rebuilding efforts, Tacloban has transformed into a hub of growth, with better roads, upgraded public services, and a booming real estate scene.

Sitting pretty along the Leyte Gulf, Tacloban is more than just a history-rich city. It's a gateway to the Eastern Visayas region, making it a prime spot for business and trade. Its cultural gems, like the Pintados-Kasadyaan Festival, give it extra charm, attracting both tourists and investors alike. Such cultural significance adds an intangible allure for investors who see potential not just in residential properties, but also in commercial ventures catering to both locals and visitors.

Tacloban may not be the first city that comes to mind when scouting for investment properties, nor is it a regular feature on top real estate hotspot lists. But don’t overlook this rising gem—known as the Home of the Happiest People in the World! The city is experiencing a dynamic surge in both residential and commercial developments, fueled by post-pandemic economic recovery, major infrastructure upgrades, and increasing investor confidence. With its untapped potential and accelerating growth, Tacloban could be the strategic addition your long-term investment portfolio needs.

Tacloban’s Economic and Infrastructure Boom

Tacloban City's economic growth dipped to 6.9% in 2023 compared to the previous year's 13.8%. However, the total value of goods and services increased from Php 51.4 billion to PhP 55.10 billion in 2023, showing that despite the slowdown, the city’s economy continues to expand. This steady growth is driven by infrastructure development, increased public and private investments, and ongoing government initiatives structured to accelerate economic activity and development in the region.

Tacloban is on a glow-up spree, and the government is all in! With urban renewal projects, improved roads, and growing commercial zones, its airport is getting a facelift that’s attracting businesses and homebuyers. The pieces are coming together, and Tacloban is slowly but surely stepping into the spotlight. Can it keep the momentum going and become the next breakout star?

Real Estate: Small But Mighty

Tacloban is embracing the real estate wave, and people are taking notice. Sure, it might not have Manila’s skyscrapers or Cebu’s waterfront condos, but it’s got room to grow! The city is still in its early boom stages, making it a great place for smart investors who are in for the long game and want a piece of the pie while prices are still reasonable.

Location, Location, Location

Seasoned investors know that location is everything—and Tacloban is a city to add to your watchlist. With expanding commercial hubs, rising business districts, and a growing tourism appeal, it offers untapped potential in a developing market. While it may not yet rival larger metropolitan centers, strategic investments today could position you ahead of the curve. Plus, its prime location puts it within travel distance to sought-after destinations like the stunning Kalanggaman Island, adding to its tourism and lifestyle appeal. The next big opportunity might just be waiting here.

Among the Cool Kids of Real Estate

Sure, Tacloban is on the rise, but let’s give a shout-out to other cities that are already rocking it:

• Cebu City: Business is booming, tourism is thriving, and the real estate market is sizzling hot.

• Davao City: A major economic powerhouse with steady real estate growth.

• Iloilo City: A fast-growing business hub with a rising property market.

Tacloban is still the rising star, but every big player started somewhere, right?

Government Push: Is It Enough to Give Tacloban an Edge?

One key factor that needs urgent attention to further energize Tacloban’s business and employment sector is internet infrastructure. While the city has several internet service providers such as PLDT, Globe, and Fil-Products, connectivity remains inconsistent in some areas, impacting business operations and remote work opportunities. Fast and reliable internet is crucial to attracting more BPO companies, supporting work-from-home professionals, and ensuring the city's full integration into the digital economy. Improvements in this area could significantly boost investor confidence and economic growth.

The government is rolling out projects to make Tacloban more livable, business-friendly, and investment-ready. With strategic initiatives aimed at economic expansion, Tacloban has a strong chance of becoming a major real estate and business hub. Key government-backed programs include:

Digital City 2025 Initiative

As part of the Digital Cities 2025 initiative, the city is gearing up to be the next big thing in tech, business, and innovation. Think faster internet, booming IT-BPM hubs, upgraded infrastructure, and schools churning out the next-gen digital workforce.

With fiber-optic expansions, 5G rollouts, government-backed broadband projects, and private-sector investments, faster and more reliable connectivity is on the way. Plus, with plans for data centers and a high-tech KIST (Knowledge, Innovation, and Science Technology) Zone, the demand for high-speed internet is pushing providers to level up.

With major investment perks rolling in, this city isn’t just keeping up—it’s excitedly leading Eastern Visayas. The future is digital, and Tacloban is going all in.

Infrastructure Flagship Projects

As part of the "Build Better More" program, the Department of Public Works and Highways (DPWH) is driving multiple infrastructure projects to enhance connectivity and economic growth, ensuring Tacloban keeps pace with other emerging urban centers.

1. Tacloban Causeway Project

The Philippine government has allotted Php3.97 billion for the Tacloban Causeway Project which will cut travel time from 45 minutes to 10 minutes from the city's downtown area to the Daniel Z. Romualdez Airport which is being modernized to accommodate international flights. The construction involves having a four-lane road embankment with a bridge at the center with separate bike lanes, concrete canals as well as wave deflectors on both sides. The causeway will also shield coastal communities from destructive waves. (Philippine News Agency)

2. Daniel Z. Romualdez Airport Expansion

The Department of Transportation, in collaboration with the Civil Aviation Authority of the Philippines and the Department of Public Works and Highways, is going full throttle to upgrade Daniel Z. Romualdez Airport. As of March 14, 2025, construction is already 56.48% complete, with the grand reveal set for April 2026! Once finished, expect bigger, better, and smoother travel for both domestic and (yes!) international passengers. (Manila Standard)

This expansion brings major upgrades designed to make travel more seamless and enjoyable. The new terminal will feature more check-in counters, boarding gates, and spacious waiting areas, reducing congestion and long lines. With enhanced facilities, the airport will support more domestic and international flights, making it easier than ever to connect Tacloban with the rest of the country and beyond. Passengers can look forward to modern amenities, smoother baggage handling, and upgraded security checks for a hassle-free experience. The expansion also includes reinforced structures and improved drainage systems, ensuring disaster resilience against extreme weather conditions. Beyond just convenience, this transformation is set to boost tourism, attract investments, and drive economic growth in Tacloban and the entire Eastern Visayas region.

Business Incentives through LIIC

Tacloban is making moves to attract investors through its Local Incentives and Investment Code (LIIC). Businesses investing in priority sectors can expect benefits like tax holidays, reduced fees, and government-backed support. The goal is to create a business-friendly environment that fosters economic growth while ensuring sustainable employment for locals. The LIIC specifically encourages investments in industries that align with Tacloban’s development vision, making it a strategic move for businesses looking for long-term growth.

Rising Costs, Job Growth, and New Industries in Tacloban

With a Consumer Price Index (CPI) of 120.0 in April 2024, prices in Tacloban have jumped 20% since 2018. While some see this as a challenge, others see it as a natural sign of progress. And what's fueling this growth? A wave of emerging industries! Tourism, agriculture, and retail are stepping up in a big way, diversifying Tacloban’s economy and adding even more reasons for businesses (and investors) to take notice.

As these industries grow, so does the demand for real estate, from homes for professionals and entrepreneurs to commercial spaces for businesses looking to plant their roots in Tacloban. With the city's economy on the upswing, real estate is becoming a hot commodity, and investors who get in early might just hit the jackpot. While some may see this as a challenge, others see it as a sign of progress. Early investors could benefit from buying now before prices rise even further. It’s all about catching the wave before it peaks!

However, with rising prices outpacing local income growth, there’s a real concern that some residents may be left behind. As property values soar, affordability becomes a challenge. If the city wants to keep thriving, job creation and workforce development need to keep up with economic expansion. As property values soar, the cost of living may become a burden for lower-income families, potentially leading to the marginalization of certain communities and widening the gap between the wealthy and the underprivileged. If growth isn't carefully managed, Tacloban could face increased poverty levels despite its economic expansion. The challenge now is ensuring inclusive development, one that benefits all Taclobanons, not just the investors and developers.

The BPO Surge Powering Tacloban’s Workforce

Tacloban is fast becoming a hub for remote work and BPO jobs, opening more opportunities for locals to earn, grow, and thrive in today’s digital economy. With companies setting up shop and the government attracting more businesses, the city is catching up with the digital workforce revolution.

Beyond job creation, the government is focused on upskilling workers to ensure that as Tacloban expands, everyone benefits—not just investors. Vocational training and development programs are helping locals stay competitive.

But the real game-changer? The BPO industry. Companies like BOLDR PH, INC. and TTEC are offering remote work opportunities, connecting locals to global job markets without leaving home. Meanwhile, industry leaders like Boldr, ePerformax Contact Centers & BPO, and LeyteComm are rolling out training programs that help job seekers land high-paying roles.

• ePerformax offers free English training at Leyte Normal University to help applicants break into the industry.

• LeyteComm is partnering with Teleperformance & Sykes to train and place workers in customer service jobs.

However, challenges remain. If job creation doesn’t keep up with economic growth, some residents could be left behind. Rising property values and the increasing cost of living could make it harder for those without competitive skills to keep up. Ensuring inclusive economic growth is one of Tacloban’s biggest challenges.

With these developments, Tacloban isn’t just growing—it’s cementing its role as a key hub for remote work and BPO employment in Eastern Visayas. As the demand for office spaces, housing, and commercial properties rises, the city’s workforce is becoming more connected, competitive, and future-ready. This booming sector is shaping Tacloban’s real estate landscape, creating global job opportunities without the need to relocate to major cities.

Airport as The Ultimate Clincher

Air travel is a key player in any city's growth, and Tacloban is no exception. Let’s take a look at how Daniel Z. Romualdez Airport stacks up against other major regional hubs:

Daniel Z. Romualdez Airport Passenger Growth

• 2020 – 363,782 passengers

• 2021 – 519,158 passengers

• 2022 – 1.48 million passengers

• 2023 – 1,539,674 passengers

While the growth is steady, it has started to plateau in recent years. So how does it compare to other key airports in the region?

Mactan-Cebu International Airport Passenger Growth

• 2020 – 2.75 million passengers

• 2021 – 1.33 million passengers

• 2022 – 5.56 million passengers

• 2023 – 10.05 million passengers

Clearly, Cebu is leading the charge in air traffic, making it a major business and tourism hub. But with Tacloban being eyed as the next international gateway in Eastern Visayas, could an airport expansion put it on the same trajectory?

The Civil Aviation Authority of the Philippines (CAAP) has already inspected the site and is fast-tracking modernization plans. If the upgrades push through, Tacloban could attract more flights, more tourists, and—most importantly—more business investments. A better-connected city means a stronger real estate market, increased demand for commercial spaces, and a higher quality of life for residents. Now that’s something worth landing on!

One thing that could send Tacloban soaring? Its airport. The government is eyeing Daniel Z. Romualdez Airport as the next international gateway for the region. The Civil Aviation Authority of the Philippines (CAAP) has already inspected the site and fast-tracked modernization plans, aiming to transform it into a major hub for international travel.

Major Retailers in Tacloban

The rise of malls in the region changed Tacloban. SM, Robinsons, and Gaisano's arrivals boosted the local economy and announced to the country and potential investors that Tacloban had arrived. Now people are taking notes and are intently watching movements in the region.

Real Risks and Roadblocks

Let’s be real, no city’s real estate market is perfect, and Tacloban has its fair share of bumps on the road to becoming the next big thing.

First up, market ups and downs. Real estate values can shift due to economic trends, changes in demand, and local government policies. Investors need to stay on their toes, keep an eye on the market, and connect with local pros to ride the wave instead of wiping out.

Next, regulatory hoops. Buying property isn’t just about signing on the dotted line—it’s also about dealing with zoning laws, taxes, and compliance headaches. Rules can change, and that might shake up development plans. A smart move? Get legal advice from experts who know Philippine real estate laws inside and out.

Then there’s the Mother Nature. Let’s not forget Tacloban has seen its share of typhoons and floods. Natural disasters can damage properties, spike insurance costs, and make maintenance a bigger task than expected. If you're investing here, think long-term: storm-proof structures, solid insurance, and disaster preparedness should be on your checklist.

Lastly, the economy matters. Tacloban is growing, but real estate depends on job opportunities, wages, and infrastructure. If businesses boom and jobs grow, demand for housing and commercial spaces will follow. But if these stall, property values could hit a plateau.

The takeaway? Tacloban is full of opportunity, but it pays to do your homework, plan ahead, and invest wisely! The local market can be subject to fluctuations due to regional economic conditions, shifts in demand, and local government policies. Investors must remain vigilant to identify trends and changes that may impact property values. A proactive approach, including regular market analysis and networking with local real estate professionals, can help mitigate the uncertainties associated with market volatility.

Regulatory issues also pose significant challenges for investors in Tacloban. Navigating through local zoning laws, property taxes, and compliance requirements can be complex, and time-consuming. Furthermore, potential regulation changes may affect future property developments and investment viability. Therefore, investors should engage legal counsel experienced in Philippine real estate law to ensure they meet all regulatory obligations and stay abreast of any legal changes.

Natural disaster risks are another critical factor to consider. Tacloban, located in the Visayas region, has historically faced challenges from typhoons, flooding, and other natural calamities. These events can not only damage properties but may also result in insurance complications and increased maintenance costs. Investors should assess the resilience of properties and consider enhancements that could reduce risks associated with natural disasters.

Local economic conditions should not be overlooked. Tacloban's economy is steadily recovering, but factors such as unemployment rates and infrastructure development play a crucial role in shaping real estate demand. To make informed decisions, investors should assess the broader economic landscape and evaluate the long-term viability of their investments in Tacloban.

The Word: Tacloban’s Real Estate Future is Bright

Tacloban is on the rise, and while it may not be an overnight success, the city is laying the foundation for a thriving real estate market. The growth is there, the potential is huge, and the opportunities are waiting to be grabbed. With an international airport on the horizon and increasing investor confidence, Tacloban’s real estate sector is primed for sustained growth. Whether you're a homebuyer, an investor, or a business looking for expansion, Tacloban is proving to be a city with vast potential in the property market.

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