The Philippines’ office market continues to gain momentum as H1 2022 comes to a close

Leasing volumes are said to further accelerate during the latter half of the year

The Metro Manila real estate landscape gradually improved in H1 2022, according to JLL. Despite new supply, office lease volumes continued to gain momentum while the retail segment saw more store additions rather than closures. Both resulted in lower vacancy levels despite new supply.

Residential sales, on the other hand, have remained flat, with the pre-selling segment gaining traction. 

As the market shows early indications of recovery, developing a robust national economic strategy to support the sector’s favourable trajectory is still crucial.

Moreover, Philstar.com cited JLL’s Second Quarter Asia Pacific Office Digest, mentioning that leasing volumes in Manila’s office market have the potential to further accelerate during the second half of the year.

More: Office spaces in the Philippines see an increase in demand, mostly coming from BPOs

“Leasing volumes are projected to further accelerate in 2H22, as the market normalises with a new administration, COVID-19 cases are continuously being contained, and return to the office mandates take effect,” said the firm, adding, “Activation of deals have been delayed due to the pandemic, and the anticipated entry of new firms are some of the other factors that may propel transactions in the coming quarters.”

This sentiment was seconded by Colliers, according to Malaya Business Insight, as the firm noted that with the capital region recording two consecutive quarters of positive net takeup, the office sector is witnessing an uptick in transactions both inside and outside of Metro Manila.

“By the end of 2022, we project office vacancy to reach 18.2 percent from 15.7 percent in 2021. We expect net takeup in 2022 to reach 350,000 sq.m.,” it added.

President Ferdinand “Bongbong” R. Marcos said in his first State of the Nation Address that the government would conduct more energy research focusing on traditional and renewable sources. This, in turn, would highlight sustainability for the built environment.

Once these measures have taken effect, further acceleration in the Philippine real estate market’s recovery can be expected.

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