The past 12 months have produced mixed results for the Philippine property.
Office vacancies remain elevated and a sizable condominium inventory has yet to be absorbed by the Metro Manila market.
On the other hand, the retail sector has been recording sustained mall space take-up, while rebounding consumer spending has also been benefiting the leisure sector.
Industrial parks continue to expand with greater prospects from sunshine segments such as electric vehicles and related components.
Residential
Colliers sees tempered condominium launches in Metro Manila due to lengthened remaining inventory life. The POGO exodus will also likely have an adverse effect on the residential leasing market, particularly the Bay Area and Makati Fringe.
Retail
Colliers expects the more aggressive entry of foreign retailers in physical malls, while developers will continue to renovate their existing spaces and introduce immersive concepts to attract greater foot traffic.
Industrial
Electric vehicle (EV), food and beverage (F&B), and semiconductor manufacturers will further propel industrial space absorption in the country’s primary industrial hubs. We also see the cold storage sector likely sustaining demand.
Hotel
In 2025, four- and five-star hotels will dominate new supply in Metro Manila. We also expect the opening of more hotels and MICE facilities in key tourist destinations.
Office
Colliers projects net take-up to recover in 2025 after posting sluggish net demand in 2024. Traditional and outsourcing firms are still likely to be the main drivers of office space demand.
The next 12 months provide vast opportunities for property players to reassess their strategies. They should identify growth opportunities and know how to recalibrate.
2025 is a year where we will likely see the full impacts of policy changes implemented in 2024 and the results of midterm elections likely to set the stage for 2028 national polls.
Property firms should thoroughly evaluate headwinds in the market, but should be quick in maximizing tailwinds. Only those who pivot will stay afloat.
Source: Colliers
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