Retail development in the Philippines is gaining renewed momentum in 2025, with a growing pipeline of mall projects targeting key urban centers beyond Metro Manila. As consumer activity rebounds and tenant revenues surpass pre-pandemic levels, developers are actively expanding into fast-growing provincial markets with untapped potential.

Around 105 new malls are currently in the planning and development stages, signaling a clear pivot toward regional growth. While activity remains steady in Metro Manila, much of the expansion is now focused on Central Luzon, CALABARZON, Visayas, and Mindanao, where infrastructure improvements, population growth, and rising consumer demand are reshaping the retail landscape.

Central Luzon and CALABARZON Lead the Provincial Push

Central Luzon and CALABARZON continue to draw strong interest from retail developers. With expanding road networks, a rising middle class, and proximity to Metro Manila, these regions are ideal for new mall locations. Many projects are situated along major thoroughfares or within townships near residential and industrial zones that provide steady foot traffic.

The growth of mixed-use estates and transport-oriented developments has also made these areas more attractive for tenants and shoppers alike, offering both accessibility and convenience.

Visayas and Mindanao See Increased Activity

In the Visayas, Cebu, Iloilo, and Bacolod are emerging as key retail centers. Cebu continues to lead regional expansion due to its status as a major business and tourism hub. Iloilo and Bacolod are experiencing rising urbanization and consumer spending, making them attractive to both national and regional brands.

In Mindanao, Davao City is positioning itself as a retail growth leader, thanks to a stable economy, improving infrastructure, and its role as a gateway to the broader southern Mindanao region.

A Shift Toward Open-Air and Lifestyle Formats

Developers are responding to shifting consumer preferences by introducing more open-air, lifestyle-oriented malls rather than traditional enclosed designs. These new formats integrate food, wellness, entertainment, and outdoor experiences.

Retail spaces in upcoming developments are heavily focused on experience-based categories, with food and beverage, health, and leisure concepts leading the way. Notably, F&B retailers surpassed pre-pandemic performance by 11% as of 2024, underscoring strong and sustained demand for dining and social experiences.

Performance Data Boosts Developer Confidence

Retail expansion is being driven by strong financial performance from mall operators. By the end of 2024, the country’s top three mall operators had reported revenues 19% higher than pre-pandemic levels, reinforcing optimism across the sector.

Between 2019 and 2024, the national retail sector grew by 977,000 sqm of new gross leasable area (GLA)—a 9% increase over five years. That momentum is expected to continue, with more supply set to be delivered in 2025 and beyond.

Opportunities for Tenants and Investors

The current development pipeline reflects a shift in retail strategy: build where the growth is. With most new malls rising outside Metro Manila, retailers and investors alike are being presented with fresh opportunities in cities where demand is climbing and competition is still manageable.

Early entrants into these fast-growing districts will benefit from greater brand visibility, access to new consumer segments, and long-term positioning in high-potential locations. In this evolving landscape, timely insights and strategic guidance are key to identifying the best locations for expansion and investment.

Looking to explore top-tier retail and commercial investment opportunities? Contact us at inquire@leechiu.com to discover available properties in the country’s fastest-growing regions and make your next move with confidence.