While rebound still varies across submarkets, Colliers is optimistic that sustained macroeconomic growth and implementation of sound economic policies are likely to support the sector’s faster pace of recovery beyond 2024.
The Philippine property market is starting to recover after reeling from the debilitating impacts of the Covid-19 pandemic in 2020 and 2021. Rebound still varies across submarkets, but Colliers is optimistic that sustained macroeconomic growth and implementation of sound economic policies are likely to support the sector’s faster pace of recovery beyond 2024.
Office landlords should look at specific sublocations that present development opportunities, including second- and third-tier cities while focusing on occupants’ sustainability thrust. In 2024, Colliers expects net take-up to reach 300,000 square meters, higher than the projected 220,000 square meters for 2023. Take-up is likely to be supported by demand from traditional occupiers (companies in various sectors such as legal, engineering & construction, government agencies and flexible workspace operators) and IT-BPM firms.
Residential developers should further explore the viability of launching resort-themed projects outside Metro Manila. In 2024, Colliers expects the delivery of 9,620 new condominium units, the largest completion since 2019. About two-thirds of the new units will be in Metro Manila’s Bay Area.
Mall operators should continue renovating and redeveloping retail spaces while curating activity-center events. We project the delivery of 385,900 square meters of new retail space in 2024. Vacancy is likely to increase given the completion of super-regional malls.
Industrial locators should seize the demand from emerging industrial locators such as electric vehicles (EV). Colliers sees the addition of 50 hectares of new industrial supply in the Cavite–Laguna–Batangas (CALABA) corridor. Semiconductor and electric vehicle (EV) manufacturers will likely dominate take-up.
Hotel operators should remain aggressive in launching homegrown or foreign brands, the latter of which will account for about half of new hotel rooms in Metro Manila in 2024. Colliers also expects the opening of more homegrown and foreign brands, as well as MICE (Meetings, Incentives, Conferences and Exhibitions) facilities in key tourist destinations.