Projects undertaken under the Luzon Economic Corridor (LEC) initiative are expected to generate between P2.5 trillion and P2.9 trillion in direct economic output, equivalent to roughly 11% to 13% of gross domestic product (GDP), according to property consultancy Jones Lang LaSalle (JLL) Philippines.

Speaking at the firm's third-quarter market briefing on Oct. 28, JLL Philippines Head of Research and Advisory Janlo delos Reyes said the corridor's economic potential exceeds that of the country's traditional growth drivers.

"What we arrived at (on the low end) is around P2.5 trillion, or 10.7% of GDP… in the construction phase alone," he said.

Mr. delos Reyes noted that overseas Filipino worker remittances account for about 7.3% of GDP, while the information technology-business process management sector and the tourism industry each account for 8%.

"If you look at value in terms of household income and job creation, we're looking at around P477.3 billion in terms of household income and the creation of at least 1.4 million jobs," he said.

The infrastructure pipeline is projected to generate between P477.3 billion and P560.1 billion in total household income while supporting between 1.4 million and 1.6 million jobs, he added.

Construction activity connected to corridor development is expected to generate between P38.6 billion and P45.3 billion in direct real estate GDP impact.

"So again, the main beneficiary for this will be industrial logistics, but we think that township developments will also be one of the plays (for) developers over the next couple of decades," Mr. delos Reyes said.

That outlook reflects the corridor's makeup: each node pairs transport infrastructure with industrial and logistics assets, from Subic's trade-focused logistics stock to the established estates in Batangas.

The LEC links regional centers that accounted for 50.3% of GDP in 2025, with a combined population exceeding 35 million people across Metro Manila, Central Luzon, and the provinces of Cavite, Laguna, and Batangas.

Clark accounts for 25 corridor projects, the largest number of any of the network's nodes, anchored by the P380.51-billion Subic Clark Natural Gas Ecosystem, JLL said.

Metro Manila accounts for 15 corridor projects, led by the P260-billion Sangley Point International Airport, the P253.7-billion North South Commuter Railway, and the P190.3-billion Metro Manila Subway.

Subic features 13 projects focused on trade and logistics, with 600,000 square meters (sq.m.) of existing logistics stock, a 5.3% vacancy rate, and 156,000 sq.m. in upcoming supply.

Batangas serves as an industrial and energy hub featuring established estates such as First Philippine Industrial Park, Light Industry and Science Park, and LIMA Estate. The province has 849,400 sq.m. of logistics space with a 9.4% vacancy rate, monthly rents of P230 to P350 per sq.m., and 133,200 sq.m. in upcoming supply.

The corridor's development comes at a time when GDP growth has slowed to 2.3%. The government targets full-year growth of 3.5% to 4.5% before picking up to 5% to 6% by 2027.

Inflation accelerated to 7.2%, prompting the Bangko Sentral ng Pilipinas (BSP) to raise its benchmark interest rate to 5.5% in October, with inflation projected at 5.4% next year due to the impact of El Niño and minimum wage adjustments.

Against that backdrop, markers of progress to watch include construction movement on the flagship airport, railway, and subway projects, the pace of the upcoming logistics supply in Subic and Batangas, and whether growth returns to the government's 5% to 6% target range by 2027.

Despite the economic pressures, JLL remains optimistic about the long-term value created by structural infrastructure projects.

"Overall, despite the relatively gloomy prospects for the economy, I think long-term, we still see a lot of value in the Philippines, a lot of potential, and LEC is one of those," Mr. delos Reyes said. "We see here that our LEC not only offers significant value to the economy, but also to the real estate industry as well."

— Juliana Chloe A. Gonzales, BusinessWorld