CEBU, Philippines — The next 12 months will be crucial for the Philippine property sector, offering developers opportunities to reevaluate their strategies and adapt to evolving market trends.
According to Colliers Philippines, while headwinds remain, there are clear tailwinds that firms must capitalize on to stay competitive.
The past year has painted a varied picture for the industry— office sector’s elevated vacancy persisted as demand recovery remained sluggish.
Residential market on the other hand experienced high condominium inventory levels, coupled with the exodus of Philippine Offshore Gaming Operators (POGOs) have strained leasing activities.
The retail sector, in the past few months, sustained mall space take-up and rebounding consumer spending have bolstered this segment, paving the way for more immersive retail concepts.
According to Colliers, the industrial sector made a growth stride fueled by rising demand from electric vehicle (EV) manufacturers, food and beverage (F&B) sectors, and cold storage facilities.
The leisure and hospitality sector also benefited from the increasing consumer spending. The hotel and leisure sector is set take advantage from new luxury hotel openings and Meetings, Incentives, Conferences, and Exhibitions (MICE) facilities in tourist hubs.
Sectoral Outlook for 2025
For residential, developers are expected to temper new condominium launches in as the market absorbs existing inventory.
In retail, the Philippines is poised to see foreign retailers to enter more aggressively, while local developers renovate spaces to enhance mall foot traffic.
Likewise, the industrial sector will see more activities in 2025, as the EV and semiconductor manufacturers are set to drive demand for industrial spaces, with cold storage facilities maintaining strong growth.
The hospitality sector will also make a strong come back, as new four and five star hotels will dominate in the supply pipeline, complemented by expansions in major tourist destinations, including Cebu.
Colliers forecast also see net take-up in the office space to recover in 2025, with traditional businesses and outsourcing firms leading the demand.
Strategic Imperatives for Developers
As the Philippine property sector navigates 2024, developers must evaluate macroeconomic factors, including midterm elections and policy reforms. The results of these changes will likely shape the industry in 2025 and beyond.
Colliers suggested that in order to thrive, property firms must identify growth areas, recalibrate strategies, and maximize tailwinds.
The target sunshine industries like EVs and cold storage while optimizing opportunities in retail and leisure.
Developers are also urged to rethink property portfolios to adapt to evolving consumer preferences and marker demand.
Colliers recommended that developers should also leverage rebounding sectors such as retail and industrial parks while managing risks in residential and office spaces.
By focusing on these strategic imperatives, developers can navigate challenges and seize opportunities to ensure sustainable growth in the years ahead.