Office occupancy in Metro Manila is expected to keep falling until 2027 as new buildings open faster than companies can fill them, according to real estate consultancy Prime Philippines. The oversupply is putting continued downward pressure on office rents and property values.
Prime said total office space in Metro Manila will grow by 1 to 2 percent through next year to more than 16 million square meters. About 328,000 square meters of new offices are set to open this year, with another 478,000 square meters coming by 2027. Most of the new supply will be in Bonifacio Global City, Ortigas and Quezon City—areas likely to see the sharpest drops in occupancy and prices.
This softer market is already changing behavior in the property industry. Prime Philippines CEO Jet Yu said large developers and investors have started selling even prime assets—something rarely seen since the years after the global financial crisis. He said this signals a push to raise cash, cut debt and reposition for the next five to ten years as prices remain under pressure.
Developers are also rethinking what to build and who to target. Yu said companies are now focusing on Gen Z workers and consumers, whose preferences are shaping office design, locations and uses.
While the business process outsourcing (BPO) sector is still expanding, much of that growth is happening outside Metro Manila—in provinces such as Cavite, Laguna, Iloilo and Bacolod. Firms are also testing smaller cities like Zamboanga, Tuguegarao and La Union, though demand there remains weak. In Metro Manila, Quezon City saw office demand last year mainly from government agencies, while BPO growth was concentrated in established hubs like Eastwood and Bridgetown.
For ordinary Filipinos, the prolonged slump has mixed effects. Lower office rents and property values can mean cheaper space for startups, freelancers and small businesses, and may eventually ease overall property costs. But for workers tied to construction, real estate and related industries, slower demand could mean fewer projects and tighter job prospects in the short term.
Nationwide, Prime said most office demand now comes from companies expanding existing operations, with fewer new entrants—another sign that the market is adjusting to a period of lower prices and cautious growth.
