THE continued expansion of multinational companies in the Philippines is expected to drive office market growth, JLL Philippines said.
“Tenants are expanding in the Philippines,” P. Ryan Isip, JLL Philippines head of capital markets, said in an e-mailed reply to question. “Some multinational firms are shifting jobs to the Philippines.”
The property consultant said there is an increasing stock of office spaces locally due to the growing demand for on-site work.
“Employers associate on-site work with major benefits such as social connection and cultural bonds,” Flore Pradere, JLL Global Work Dynamics research director, said. “They see it as a significant contributor to employee performance.”
She said there is more stock of office spaces locally and demand is on the rise for real estate that helps organizations meet their net zero carbon goals.
The completion of four development projects in the cities of Muntinlupa, Pasig, Quezon, and San Juan contributed to the increase in office stock by 222,000 square meters (sq.m.) in the third quarter of last year, JLL Philippines said in a report.
It added that Taguig and Makati would continue to account for majority of office stock in Metro Manila with a 26% and 20% share.
“Most of the anticipated supply by the end of 2026 is coming from Quezon City and Taguig City, which are expected to see large volumes of new stock until the end of 2024,” it said.
As of end-September last year, business process outsourcing firms accounted for most transaction volumes.
The Philippine property market would continue growing mainly due to the expected growth of local construction companies, said Lance U. Soledad, research associate at China Bank Securities Corp.
“A strong recovery in the property sector, improving business expansion appetite, as well as further progress in big-ticket infrastructure projects could improve medium-term topline and bottom-line prospects,” he said in an e-mail. — Ashley Erika O. Jose
