ASIA PACIFIC OUTLOOK 2025

MANILA

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

New entrants and the expansion of real estate needs from the IT-BPM sector, including rising demand from global capacity centers (GCCs), will drive growth in 2025.

An average of 138,000 sq m of new supply per annum is expected in the next five years, 23% lower than the projected five-year new supply in 2024 and 80% lower than the average in the five years before the pandemic.

Due to the volume of expected office space turnover in response to the total ban on Philippine offshore and gaming operators (POGOs), annual net absorption drastically declined to 1,500 sq m in 2024 from approximately 271.250 sq m in 2023.

Rents are projected to decrease by 2.80% in 2024 and by an additional 3.20% in 2025.

Headline rents are projected to recover by 2026, growing at an average annual rate of 3.5% until 2029.

Elevated vacancy rates will persist due to space rationalization and completion of new supply.

Net absorption is expected to increase by a compound annual growth rate (CAGR) of 58% over the forecast period.

The full implementation of the CREATE More Bill will allow local IT-BPM companies, among other occupiers, to implement remote work setups, altering space demand growth in the short- to medium-term.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025