Date: January 4,2024
In a promising turn for the real estate market in Manila, the upcoming year is poised to witness significant growth in both office and residential properties. The resurgence in on-site work, fueled by the declining impact of the Covid-19 pandemic in the National Capital Region (NCR), is anticipated to be a primary catalyst for this positive trajectory.
As Manila's real estate market braces for the new year, positioning Manila properties as a prime investment opportunity in the coming month, the outlook for Manila's real estate market in the coming year is one of promise and potential. The synchronized dance between on-site work, reduced interest rates, and strategic developments positions Manila properties as not just a tangible investment opportunity but as integral components of a dynamic and evolving urban narrative.
Do these factors not only inject vigor into the market but also underscore the resilience and adaptability of Manila's real estate sector in navigating evolving economic landscapes?
Joey Bondoc, the Director of Research at Colliers, highlighted the positive impact of local employees gradually returning to on-site work, contributing to enhanced leasing activities in major business districts like Makati CBD, Ortigas Center, and Fort Bonifacio.
The firm's forecast predicts a robust 3.2 percent increase in rents by the end of 2023, propelled by the strengthening residential leasing market within central business districts. They envision a noteworthy uptick to 9,620 new residential units in 2024, with a significant concentration in the Bay Area.
The lower and upper mid-income segments have demonstrated a strong demand, constituting a substantial 73 percent of the total condo units sold during the first nine months of the year. Reduced interest rates and mortgage rates as additional factors likely to fuel an increase in pre-selling demand, further invigorating the real estate market. The third quarter witnessed a marginal dip in residential vacancy, signaling an improved leasing landscape in major business hubs.
The office sector, while experiencing a temporary increase in vacancy in the third quarter, is expected to rebound with an upswing in leasing activities. Developers are urged to seize opportunities in resort or leisure-oriented properties outside Metro Manila, aligning with the burgeoning interest in post-pandemic "revenge travel." Colliers advises a strategic approach for developers, emphasizing the integration of "green living" concepts in new residential projects to cater to the growing demand for sustainable and eco-friendly living options.
As we step into the new year, the call to developers is not only to envision growth but to embrace sustainability. Recommendation to integrate "green living" concepts in new residential projects not only aligns with the global trend but also reflects the discerning choices of modern homebuyers.
The emphasis on eco-friendly designs, coupled with the anticipation of increased demand for resort or leisure-oriented properties, unveils an opportunity for developers to not just meet but exceed evolving consumer expectations.
In the tapestry of Manila's real estate story, the chapters written in the coming year are poised to be both vibrant and transformative. With each new residential unit and office space, Manila beckons investors, developers, and residents alike to be part of a narrative that is not just about buildings but about creating sustainable, thriving communities that stand the test of time.
Reference:
https://mb.com.ph/2023/10/25/on-site-work-prompts-rise-of-office-residential-spaces-in-2024-colliers
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