Corporate relocations, particularly by government agencies, and the decentralization of business operations are reshaping the Philippine real estate landscape, according to property consultant Prime Philippines. The firm noted that pending public sector relocations in Metro Manila could boost office occupancy, while business process outsourcing (BPO) growth continues to spur demand in regional hubs such as Clark, Cebu, Davao, Iloilo, and Bacolod.
“Real estate performance in the first half of 2025 suggests a market not merely weathering global turbulence but actively repositioning,” the company said, citing trends toward decentralization, flexible workspaces, and innovation-focused formats.
In Metro Manila, office occupancy grew modestly in Bonifacio Global City, Makati, and Ortigas by up to 3 percent, driven by BPO expansion and government relocations. In contrast, Pasay, Parañaque, and Alabang saw vacancy increases of over 3 percent due to lingering Philippine offshore gaming operator (POGO) exits and BPO downsizing.
Quezon City experienced a 3.5 percent occupancy decline despite strong interest from government and professional services, as many agency relocation plans remain in the procurement stage. Still, the public sector comprised 18.5 percent of national office demand in the first half, with requirements focused in Quezon City, Pasay, and Pasig.
Meanwhile, Metro Manila office lease rates dropped 6 percent year-on-year, with Pasay experiencing the sharpest decline at 10.6 percent. Outside the capital, however, Davao and Cebu recorded rental increases of 12.7 percent and 3.9 percent, respectively, amid tight premium office supply and ongoing recovery.
In the industrial sector, Tarlac, Pangasinan, and Pampanga are expected to lead warehousing growth, benefiting from global trade realignment. The retail segment is shifting toward suburban and mixed-use developments, with health, wellness, and F&B as core drivers, alongside the rise of EV infrastructure as a new competitive edge.
