top of page
よくある質問: Blog2
  • bedandgoinc

People-Centered Strength in 2024: Adapting Offices and Workspaces Flexibility in Manila Real Estate

更新日:2月12日

Date: February 7, 2024



Entering the dynamic realm of 2024, Manila's real estate sector presents a compelling narrative of resilience, growth, and strategic adaptation in response to post-COVID momentum and heightened outsourcing activities. As we embark on this new year, the market showcases a robust rebound, with the office occupancy rate soaring to 80%, reflecting the market's ability to overcome global challenges. The luxury residential sector, experiencing an impressive surge of 21.2% in prices, highlights unwavering investor confidence in high-end properties. Companies, strategically planning for the future with 87% intending to adopt an office-centric model, usher in a transformative phase for commercial real estate, prioritizing employee well-being and innovative work patterns. The phenomenon of "revenge spending" in the retail sector injects vibrancy into consumer expenditure, impacting warehouse lease rates and solidifying Manila's standing as a key player in the Asia Pacific region. Anticipated growth in both office and residential properties in the National Capital Region (NCR) by 2024 sets the stage for a dynamic real estate landscape, complemented by a projected 3.2% rise in rents and an influx of new residential units. As we navigate the landscape of 2024, the Philippine real estate sector emerges as a beacon of growth, inviting investors to explore the intricate threads of Manila's evolving property market and contribute to its enduring narrative of resilience and transformation.



Manila's real estate sector is currently experiencing a positive trajectory, marked by significant improvements across various segments. The office occupancy rate has rebounded to 80%, indicating a robust recovery from previous challenges. This resurgence underscores the market's resilience in the face of adversity. Moreover, the luxury residential sector in Manila is witnessing remarkable growth, with prices soaring by 21.2%. This surge is fueled by strong investor confidence, signaling a vibrant market for high-end properties in the city.


Economic growth plays a crucial role in shaping the real estate landscape, with the Philippine GDP recording a substantial 5.9% growth in Q3. This growth is driven by significant foreign investments in key sectors such as Electronics, Manufacturing, and IT services. Companies are strategically planning for the future, with 87% intending to adopt an office-centric model over the next three years. This strategic approach includes a focus on amenities like food and beverage offerings, mental well-being support, and gym facilities to meet the evolving needs of the workforce.



The phenomenon of "revenge spending" in the retail sector has spurred consumer expenditure, impacting warehouse lease rates in Manila. Warehouse rates experienced a remarkable 30% surge in the first half of 2023, marking the highest in the Asia Pacific region. Anticipated growth is expected in both office and residential properties in the National Capital Region (NCR) by 2024, driven by the gradual return to on-site work. This growth includes a projected 3.2% rise in rents by the end of 2023, particularly in major business districts like Makati CBD and Ortigas Center. Developers anticipate a substantial increase in new residential units (9,620) by 2024, primarily in the Bay Area, fueled by returning expatriates seeking larger units near workplaces and international schools.


Challenges persist in the office sector, with an 18.7% increase in vacancy in Q3, leading to elevated vacancy levels expected in 2024 due to supply outstripping demand. To address this, recommendations include a shift towards flexible workspace options and increased landlord engagement events to rekindle the appeal of returning to physical offices. Over the past decade, the Philippine real estate sector has experienced significant growth, driven by a robust economy, rapid urbanization, and an expanding middle class. Despite challenges posed by COVID-19, the commercial real estate sector, including offices and retail spaces, has flourished, attributed to the thriving Business Process Outsourcing (BPO) industry and the presence of international retailers.


The importance of location in real estate investment is emphasized, with prime locations commanding higher prices and rental rates. In the Philippines, geographical diversity and development disparities across regions make location crucial. Metro Manila, with its diverse and dynamic real estate market across 16 cities and one municipality, stands as the economic powerhouse of the country, offering prime investment opportunities despite challenges such as high property prices and traffic congestion.



As we step into the promising landscape of 2024, Manila's real estate sector continues to unfold a narrative of resilience, growth, and strategic adaptation in response to post-COVID momentum and increased outsourcing activities. The rebound of the office occupancy rate to 80% stands as a testament to the market's ability to overcome global challenges, while the luxury residential sector's remarkable surge, with a 21.2% increase in prices, attests to unwavering investor confidence in high-end properties. Companies strategically planning for the future, with 87% intending to adopt an office-centric model, introduces a transformative phase for commercial real estate, emphasizing employee well-being and evolving work patterns. The phenomenon of "revenge spending" in the retail sector adds vibrancy, influencing consumer expenditure and impacting warehouse lease rates, marking Manila as a key player in the Asia Pacific region. Anticipated growth in both office and residential properties in the National Capital Region (NCR) by 2024, coupled with a projected 3.2% rise in rents and an increase in new residential units, sets the stage for a dynamic real estate landscape. Reflecting on the past decade, the Philippine real estate sector emerges as a beacon of growth, driven by a robust economy, rapid urbanization, and an expanding middle class. Challenges like high property prices and traffic congestion coexist with potential opportunities in provincial cities, offering a nuanced outlook for investors. The diverse and dynamic real estate market in Metro Manila, with key districts like Makati City, Bonifacio Global City (BGC), Ortigas Center, and Quezon City, invites investors to weave their stories into the rich tapestry of Manila's evolving property market. In conclusion, as Manila stands as a dynamic hub for real estate opportunities in 2024, investors are encouraged to navigate the intricate threads of its landscape and contribute to the ever-evolving narrative of growth and transformation.


References:

閲覧数:12回0件のコメント
bottom of page