Regional office market in PH sees positive growth in 1H 2024

The Philippine regional office market is experiencing significant growth and development in the first half of 2024, according to the latest KMC Savills Regional Office Briefing. Driven by strong investor confidence and new infrastructure projects, cities like Iloilo, Cebu, Bacolod, and Davao are emerging as key hubs for business expansion and innovation.

Iloilo and Cebu Lead Expansion

Iloilo's office market made a significant leap with the addition of 105,200 square meters of new office space, and Cebu is set to exceed this with 143,800 square meters by 2025. These developments highlight the strong potential of the Visayas region as a prime destination for businesses looking for modern office facilities and strategic growth opportunities.

Attractive Market Conditions

The recent increase in office supply has led to favorable conditions for businesses, with rental rates in Iloilo and Bacolod becoming more competitive. Meanwhile, Metro Cebu and Davao have seen rising demand, driving rental rates up slightly as these cities continue to attract new investments.

Bright Outlook for Regional Growth

Bacolod and Davao are maintaining steady momentum, while Metro Cebu is set to benefit from an increase in office space transactions as its popularity for business expansion continues to grow. Iloilo's vacancy rates are expected to provide even more opportunities for companies seeking prime office locations in a rapidly developing market.

Strong Demand and Future Prospects

The consistent demand in these regional markets, coupled with ongoing development projects, indicates a bright future for the office sector in the Philippines. With new spaces coming online and strategic investments being made, these areas are well-positioned to become major centers for economic growth and business innovation in the coming years.

The Philippine regional office market's positive trajectory underscores the country's commitment to creating dynamic, growth-oriented business environments that cater to both local and international investors.