The Philippines has emerged as one of Asia-Pacific’s brightest office markets in 2025, staging a sharp leasing rebound that outpaced many regional peers, according to property consultancy Colliers.
In its February 25 APAC report, Colliers flagged the Philippines alongside New Zealand and Hong Kong as standout performers, with leasing demand posting a multifold increase year on year.
The resurgence was fueled by traditional occupiers and business process outsourcing (BPO) firms, which sustained strong transaction activity across key business districts.
The recovery has been particularly evident in Metro Manila, where vacancies improved compared with last year as firms expanded and consolidated space.
Colliers noted that steady deal flow from both outsourcing and conventional corporate tenants helped absorb available inventory, stabilizing market conditions after a prolonged pandemic-era slump.
Roughly 250,000 square meters of new office space were delivered in 2025, with a comparable volume set for completion in 2026. The influx has kept the Grade A supply pipeline intact without derailing rental growth. Instead, rents in prime locations posted a marginal year-on-year uptick, supported by healthy take-up and renewed interest in premium buildings.
Colliers expects rents in primary central business districts to post modest growth in 2026 as vacancy rates in these areas slip into single-digit territory.
Regionally, Asia-Pacific office leasing climbed 11 percent year on year to 9.8 million square meters in 2025. While India, Mainland China and Japan accounted for the lion’s share of volume, the Philippines distinguished itself with outsized growth momentum.
Colliers projects that improving business confidence, declining vacancies and sustained appetite for prime assets will continue to underpin leasing activity across the region through the first half of 2026 — with the Philippines firmly in the spotlight.
