The three major Philippine property consultants: Colliers International, Jones Lang LaSalle (JLL), and Leechiu Consultants’ industry reports dispel the rumors that the country is currently facing a real estate bubble as they compare property prices of today to those during the peak of the nation’s financial crisis in 1997.
When adjusted to inflation, our current rates are still significantly cheaper by 20 percent. Unlike the behaviors of the market bubbles, the spike in demand is justified by real needs in the marketplace as buyers acquire property for use, not speculation.
In fact, many analysts compare the country’s numbers with Hong Kong’s back in the 80’s and seat leasing in Manila is only expected to spike in 2022 once demand outstrips supply. According to JLL research and consultancy director Janlo de los Reyes: “We could see interest still coming from mainland Chinese investors looking into investing 300 hectares, 500 hectares.”
The top industries looking for an office space for rent in the Philippines
Not surprisingly, IT-BPO companies take the lead as it occupies a total of 181,000 square meters (sqm) in Manila. However, growth has been slowing from this sector when taken quarter by quarter as the Philippine government limits their Philippine Economic Zone Authority (PEZA) building accreditations in the region to encourage growth in new developments outside the metro.
Meanwhile, similar businesses from China introduced by the Philippine Offshore Gaming Operations (POGOs) are promising an astronomical growth that would replace the demand from the IT-BPO arena. What’s more, another major but unexpected source for office space demand this year came from expansions of pharmaceutical companies in Manila.
Proof that the new, millennial style of working is invading the Philippines also saw an increase in flexible coworking spaces now becoming the fourth top source of office space demand in the realm of seat leasing in the country’s capital.
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