Metro Manila’s real estate market recorded solid growth across offices, retail, residential, hospitality, and logistics in 2025, signaling sustained business and consumer activity, according to year-end data from Jones Lang LaSalle Philippines (JLL).
Office leasing rose 71.5 percent year-on-year, reaching nearly one million square meters — the highest level since 2022. The Business Process Outsourcing (BPO) sector accounted for 64 percent of total demand, while corporate firms made up 36 percent. Taguig City, led by Bonifacio Global City, topped leasing activity, while Makati City posted the fastest growth at 92.2 percent. Vacancy stood at 18.6 percent in the fourth quarter amid new building completions and tenant relocations to newer, green-certified offices.
The retail sector rebounded strongly in the fourth quarter, with store openings up 34 percent and closures down 60.8 percent. Food and beverage outlets led expansion. Rental rates rose slightly by 1.3 percent year-on-year, while total mall space reached 7.9 million square meters.
In the residential segment, condominium sales improved, particularly in pre-selling projects. Midscale developments posted a 78.6 percent take-up rate, while upscale and luxury projects reached 85.2 percent. Demand was supported by steady growth in overseas Filipino worker (OFW) remittances.
Hotels maintained solid performance, ending 2025 with an 82 percent. occupancy rate. International arrivals rose to 6.5 million, supporting demand in both business and leisure travel. Luxury and upscale hotels led occupancy levels, especially in major business districts.
The logistics and industrial sector also expanded, with speculative warehouse supply increasing 34.2 percent year-on-year. Vacancy rates in major hubs such as Cebu, Pampanga, Batangas, Laguna, and Metro Manila remained below 4 percent, reflecting strong demand.
For 2026, JLL projects continued but measured growth, supported by major infrastructure projects including the Cavite-Laguna Expressway (CALAX), C5 South Link Expressway, and NLEX-SLEX Connector Road, which are expected to improve connectivity and stimulate property development in key corridors.
JLL said Metro Manila’s property pipeline through 2030 reflects sustained investor confidence, with additional office, retail, residential, hotel, and logistics projects planned across the capital and nearby provinces.
