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2024 3 Points to Explore Real Estate Situations in Manila's Office and Workspace


Date: May 30, 2024

As we navigate through the evolving landscape of Manila real estate in 2024, several key trends and developments paint a vivid picture of resilience, growth, and strategic adaptation. This article delves into the transformative shifts in the sector, driven by post-COVID recovery dynamics and a robust outsourcing industry. Here, we explore three pivotal areas that define the current state and future outlook of Manila’s real estate:

1. Robust Recovery and Innovation in Office Spaces

  • The office real estate sector in Manila shows a remarkable rebound, with occupancy rates climbing to 80%. This resurgence is not just a recovery but a reinvention, with businesses re-evaluating their space requirements. About 87% of companies are now leaning towards an office-centric approach, albeit with significant tweaks. Modern office designs now prioritize flexibility, employee wellness, and hybrid work models, integrating amenities such as enhanced food and beverage services, mental health support, and onsite fitness centers. This shift reflects a deeper understanding of work-life balance and the evolving needs of the modern workforce. The introduction of flexible workspaces is a strategic response to the increased vacancy rates, which peaked at 18.7% in late 2023. Companies and developers are now more actively engaging in creating spaces that cater to the dynamic needs of their employees and clients.

2. Surge in Luxury Residential Markets and Consumer Spending

  • The luxury residential segment in Manila is witnessing a robust growth, with an impressive 21.2% increase in prices, underscoring strong investor confidence. This sector’s boom is complemented by the phenomenon of "revenge spending" where pent-up consumer demand is driving higher expenditure in retail, influencing related real estate segments like warehouses, which saw lease rates jump by 30% in early 2023. The anticipated growth in residential properties is further buoyed by a 3.2% projected increase in rents by the end of 2023, especially in major business districts. An influx of 9,620 new residential units expected by 2024, particularly in the Bay Area, caters to the needs of returning expatriates and locals seeking convenience and luxury close to their places of work and good schools.

3. Strategic Location and Economic Growth Fueling Real Estate Dynamics

  • The Philippine economy, expanding by 5.9% in the third quarter, underpins the positive trajectory of Manila’s real estate market. Strategic locations within Metro Manila, such as Makati CBD, BGC, and Ortigas Center, continue to attract premium investments. The geographical diversity within the National Capital Region offers a kaleidoscope of opportunities and challenges, from high property prices to traffic congestion. However, the economic vibrancy driven by sectors like electronics, manufacturing, and IT services ensures that these areas remain attractive for both commercial and residential developments.

Reflecting on the decade past and looking towards the future, Manila’s real estate market is more than just surviving; it is thriving through adaptation and innovation. As 2024 unfolds, the sector is poised for further growth, driven by a strong economy, strategic investments, and a deeper understanding of the market’s needs. The focus on making office spaces more accommodating and the expansion in luxury residential properties are responses to a globalized world's demands. As Manila positions itself as a significant player in the Asia-Pacific real estate market, the ongoing developments invite investors to partake in a journey of growth and transformation, making the city a vibrant hub for real estate opportunities. The resilience and strategic shifts observed today will undoubtedly pave the way for a promising and robust future in Manila’s real estate landscape.




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