Developers asked to take advantage of emerging trends

Property consultant Colliers says developers should capitalize on emerging trends, including a renewed preference for traditional office setups and a growing demand for sustainable features, according to its latest briefings.

Colliers' surveys indicate employees are more effective in a traditional office environment. This presents opportunities for developers to highlight the crucial role office space plays in worker welfare and productivity. It also makes it an opportune time to integrate healthy and sustainable features into office buildings, which are proving to be a major draw for employees returning to the office.

Residential Market and Retail Trends

The residential market is also showing encouraging signs, with a rising preference for condominium units partly due to attractive ready-for-occupancy (RFO) promotions. The take-up for house-and-lot and lot-only properties remains robust, supporting a continuing shift to suburban living.

Meanwhile, physical mall space absorption across Metro Manila remains strong, complemented by Filipinos' increasing online shopping habits. Popular online purchases include clothing, footwear, and groceries. This should prompt retailers and mall owners to improve the omnichannel shopping experience for consumers.

Office tenants are increasingly prioritizing green and sustainable features when seeking office space. Colliers Philippines previously noted the growing popularity of green, healthy, and sustainable office spaces, with landlords responding to demand from multinational and large Filipino firms focused on sustainability.

This trend is expected to become the norm, as healthy and sustainable spaces will be pivotal in enticing employees back to the office. More than 40% of Colliers' respondents consider sustainability an important factor when looking for office space, while nearly 30% deem green and sustainable features critical.

Colliers estimates approximately 1.1 million square meters of new office space will be completed from 2025 to 2027, with about half of these spaces holding green and/or sustainable certifications. Landlords are encouraged to capitalize on this rising demand, especially from multinational corporations requiring their Philippine units to occupy offices within sustainable towers and align with parent firms' sustainable development and environmental, social, and governance (ESG) practices.

A majority of Colliers' respondents reported greater productivity in a traditional office setup. Colliers believes this offers significant opportunities for landlords to redesign and reimagine their office spaces to encourage more employees to return. A traditional office setup also bodes well for the economy due to its positive multiplier effects.

Colliers continues to observe shifts in stakeholder preferences, which should guide developers' expansion plans in the near to medium term. The firm states that opportunities are "endless for agile and proactive property firms."