The British Chamber of Commerce Philippines hosted the 8th Property Matters event on August 29, 2024, at Dusit Thani Makati. The event focused on the theme, “Transforming Philippine Cities: The Intersection of Infrastructure, Sustainability, and Investment.” It explored ongoing developments in the Philippine real estate industry, emphasizing the growing importance of sustainability and technology integration in shaping future urban landscapes.
Economic Contributions and Market Resilience
The real estate sector continues to be a key driver of the Philippine economy. In 2022, it contributed approximately PHP 536 billion to the national GDP. Despite challenges like rising inflation, increasing interest rates, and geopolitical tensions, the sector remains resilient. Additionally, mixed-use developments and green buildings are expected to strengthen the residential market, which is projected to reach US$5.29 trillion by the end of 2024. Furthermore, the hospitality industry is also on the path to recovery, with new hotel completions and events planned for the year.
Office and Residential Market Trends
Brent Respicio of Colliers Philippines highlighted the impact of the POGO ban on the office market. He observed a significant rise in vacancies, particularly in Manila. Currently, around 1.2 million sqm of office space remains available, affecting key locations such as Cebu, Pampanga, and Iloilo. On the residential side, the Bay Area is projected to surpass Fort Bonifacio in residential volume by 2024. However, concerns persist about a potential vacancy rate exceeding 50% post-POGO.
Infrastructure Developments
Infrastructure developments, including the upcoming subway and NAIA projects, are expected to significantly impact both residential and office markets. Notably, discussions also covered developments like Nepo in Pampanga and Villar City, which signal continued growth in these regions.
Emphasis on Sustainability
Sustainability was a central theme throughout the event. Susan Santos de Cardenas, President & CEO of the Society for Sustainable Tourism & Development Inc., emphasized the importance of ecological preservation and sustainable tourism. She pointed out that the Philippines’ unique selling proposition lies in its people and natural beauty. Consequently, she urged developers to prioritize conservation and community-based initiatives.
Sustainability Leadership in Real Estate
Arthaland Corporation showcased its leadership in sustainability. The company highlighted projects such as Sevina Park, the only LEED-certified neighborhood in Southeast Asia, and Balai Berde, which offers green housing with affordable financing. Moreover, Arthaland is committed to extending its sustainability efforts beyond upscale markets to include the middle market, reflecting a broader push toward inclusive, environmentally conscious development.
Panel Discussions: A Focus on Livability and Decentralization
The panel discussions provided valuable insights into the future of urban development in the Philippines. Architect Felino A. Palafox, Jr. stressed the need for emerging cities to “unlearn” Manila’s development patterns. He advocated for sustainable practices, such as planting trees to offset carbon emissions and dedicating urban space to people and biking. In addition, the concept of decentralizing business districts was a key topic, with Clark envisioned as a 15-minute city focused on livability. This concept reflects a broader shift toward more sustainable, people-centered urban planning.
The Future of Philippine Cities
The 8th Property Matters event accentuated the critical intersection of infrastructure, sustainability, and investment in transforming Philippine cities. As the real estate industry continues to evolve, embracing these principles will be essential for fostering resilient, sustainable urban environments. Consequently, this will support long-term economic growth and improve the quality of life for all Filipinos.
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