Megaworld raises 2026 spending to fuel township growth outside capital

Insider Spotlight

• Megaworld raises 2026 capital spending to P65 billion, up 30 percent year on year
• Majority of investments directed to provincial township developments
• Expansion outside Metro Manila positioned as the company’s next growth engine
• New projects expected to support future MREIT asset infusions

Megaworld Corp. is increasing its capital expenditures by a third this year as it doubles down on township developments outside Metro Manila, positioning provincial growth as a key driver of its long-term expansion strategy.

In a disclosure to the bourse on Feb. 4,  2026, the listed property developer founded by billionaire Andrew Tan said it will allocate P65 billion for capital spending in 2026 — up 30 percent from last year’s P50 billion — with funds earmarked for land acquisition, land banking, and the development of both new and existing projects, particularly in the provinces.

Why it matters

Megaworld’s pivot toward townships outside Metro Manila reflects shifting demand patterns as businesses, residents, and tourists increasingly look beyond the capital for growth opportunities. The strategy also supports the company’s recurring income pipeline, especially through future asset infusions into its real estate investment trust, MREIT Inc.

The big picture

A significant portion of the P65-billion budget will be used to jumpstart land development in several provincial townships, including Ilocandia Coastown in Ilocos Norte, The Upper Central in Cagayan de Oro City, and Nascala Coast in Nasugbu, Batangas.

Lourdes Gutierrez-Alfonso

The Megaworld chief also wants to integrate technology and AI into the firm's new developments.

The company is also expanding residential, office, and retail components in its townships across Bacolod, Iloilo, Pampanga, Cavite, and Palawan. 

These developments are expected to generate additional high-quality office and commercial assets that can later be injected into MREIT, strengthening Megaworld’s recurring revenue base.

What they’re saying

“We are seeing opportunities ahead, and we look forward to the sustained growth in the office, commercial, hospitality, and tourism sectors. We are continuing our expansion program with renewed optimism as we innovate our township offerings. Our residential business remains a strong growth engine, especially as we introduce more pioneering projects that integrate new technologies such as the use of artificial intelligence into our new developments,” said Megaworld president and CEO Lourdes Gutierrez-Alfonso.

Zoom in

On the residential side, Megaworld plans to launch 19 projects this year with a combined value of P65 billion. These projects will be located across both Metro Manila and the provinces, including Pasig, Taguig, Manila, Ilocos, Cavite, Batangas, Laguna, Palawan, Iloilo, Cebu, and Cagayan de Oro.

Beyond residential developments, the company is accelerating its hospitality expansion. Five hotels are currently under construction in Pasig, Pampanga, Palawan, and Bacolod City, adding nearly 2,000 rooms to its portfolio and bringing Megaworld closer to its target of over 9,000 hotel room keys within the next three years.

What’s next

With its latest township announcement in Talisay City, Negros Occidental, Megaworld is reinforcing its view that provincial townships will anchor its next phase of growth, supported by higher capital spending and a diversified development pipeline. — Daxim L. Lucas | Ed: Corrie S. Narisma