The Philippines office market shows potential growth

By end of 2023, the Philippines will be setting new standards for the office market’s growth

The last quarter of 2022 ended with an improvement in the Philippines’ office market.

Business World reported Manila to be the third cheapest office market in Asia and the Pacific regions with prime offices in Metro Manila priced at PHP1,750 (USD32.46) per square metre at most per year. This puts Manila just behind Kuala Lumpur and Jakarta with the cheapest rental rates.

The Manila Bulletin added that office property supply in Metro Manila reached 757,501 sqm with 598,518 sqm of them being up for lease. Compared to 2021’s 4th quarter seeing 11 percent of their total office supply in Metro Manila leased, 2022 saw a vast improvement with roughly 21 percent leased.

More: Provinces in the Philippines drive office demand as they aim to attract more talent

On a provincial spectrum, a market supply analysis declared 306,624 sqm total office property supply with 251,145 sqm, or 18 percent of the total, available for lease. Provincial office supply is predicted to skyrocket by 2026 of up to 540,000 sqm. On a broader scale, different township developments within the country, most of which are in the province, are predicted to attract investors, locators, and businesses.

The post-pandemic era brought the Philippines to a continuous economic recovery that may set new growth standards for the office market and the real estate industry as a whole by end of 2023. This goal is tangible given the growth from 2021 to 2022 in the office market.

The Philippine Star reported data from the Asia Pacific 2023 Office outlook report by Cushman and Wakefield, which states that there will possibly be a 50 percent increase in the demand for office spaces in Metro Manila by end of 2023. In numbers, the demand for office space would reach roughly PHP325,161 while rent itself would grow by 0.4 percent year-on-year.

The Property Report editors wrote this article. For more information, email: [email protected].