Colliers, a professional services and investment management company, is optimistic about the impact of the Philippines’ sustained economic growth of the property market in 2025.
With the economy expanding by 5.6 percent in 2024, slightly above the 5.5 percent growth seen in 2023, Colliers’ research director Joey Bondoc sees this consistent economic performance as a key driver for the recovery and growth of the real estate sector, particularly in Metro Manila’s residential and office markets.
Bondoc said that while challenges such as the aftermath of the pandemic and the exit of Philippine offshore gaming operators (POGOs) still loom large, the ongoing economic growth will bring more sustainable demand for both office and residential properties. He believes that the increased economic activity, especially in key sectors like tourism, manufacturing, and services, will continue to fuel demand for high-quality office spaces in Metro Manila, which are being offered at more competitive, discounted rates.
The office leasing market, by Colliers’ estimation, has already seen some positive signs. Companies looking for space in Metro Manila are now more inclined to secure premium office spaces at attractive prices, providing an opportunity for landlords to fill the void left by POGO firms. As the economic conditions improve, Colliers expects this trend to gain further momentum.
Bondoc also points to the residential market as a segment poised for growth, especially with the expected reduction in interest rates. Lower rates should spur demand for both vertical and horizontal residential developments, particularly in areas outside Metro Manila. He believes that developers who offer appealing payment terms will further bolster interest from homebuyers.
The Bangko Sentral ng Pilipinas has lowered overnight rates and cut bank’s reserve requirement ratios—lowering the cost of money that could further spur business activities and expansion.
Overall, Colliers remains confident that the continued economic expansion will not only stabilize the property market but drive growth across various segments, from offices to residential and even industrial spaces, which will attract greater foreign investment in 2025.
