Asia Pacific Office Outlook 2024

MANILA

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 An average of 180,000 sqm of new supply per annum is expected in the next five years, 25% lower than the projected five-year new supply in 2022 and the 709,000 sqm average in the five years prior to the pandemic.

 After registering negative net absorption of 59,000 sqm in 2022, demand is expected to return to positive territory in 2023.  Net absorption is set to grow strongly in 2024 to over 300,000 sqm, with further incremental growth thereafter to 2027.

 Rents are expected to grow by roughly 0.4% year-on year by the end of 2023. From there, rents are expected to grow on average by 3.2% per year up to 2027.

 New entrants and

expansion of real estate requirements from the IT BPM sector are expected to be reactivated in 2024.  Despite the higher return to-office rate in the local market, high vacancy rates are expected to persist as global corporate occupiers sustain hybrid work arrangements.  The pending legislation that will allow local IT-BPM companies to implement

remote work set-up is expected to affect the leasing activity in Metro Manila.