Demand for office space in the Philippines is expected to reach a post-pandemic high of 1 million square meters (sq m) in 2023, driven by the robust IT-BPM sector.
This is still below the all-time high levels seen in 2018 and 2019, but it reflects a strong recovery from the pandemic.
The IT-BPM sector accounted for 240,000 sq m of net positive demand in the first half of 2023, making Metro Manila one of three locations in the world that showed strong take-up during the period.
The bulk of contracts are for multiple sites, reflecting the growing preference for “microsites” amid the work-from-home trend.
The current office supply in the country stood at 18.1 million sqm, with 82 percent of the available space located in Metro Manila. Moreover, the overall vacancy rate remains elevated at 19 percent due to the completion of new office buildings.
However, the vacancy rate is expected to dip starting in 2024 when the supply also dramatically goes down.
