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The firm anticipates a PH real estate market revival in 2022

According to a real estate consultancy business, the government has lifted restrictions related to the epidemic and has no plans for another lockdown, so the recovery of the real estate market is anticipated to continue this year.

Colliers Philippines stated in a briefing that the hotel industry is recovering at a faster rate, office space supply is returning to pre-Philippine offshore gaming operator (POGO) levels last seen in 2016, and condo take-up this year is anticipated to surpass 2021 levels.

According to Joey Roi Bondoc, associate director for research at Colliers Philippines, hotel occupancy rates in Metro Manila increased to 47% from January to June of this year from 44% from July to December of 2021.

According to Bondoc, “We attribute the improvement to the gradual return of business travel, particularly among investors conducting due diligence; local guests’ growing propensity to spend on leisure, probably supported by a rise in demand from the staycation market in April to June; and a slight rebound in foreign arrivals due to the relaxation of entry restrictions.

The outlook for new hotel room construction for the years 2022 to 2024 is positive, with 2,650 rooms expected to be finished annually, including those from overseas brands like Ibis, Pullman, Lansons Place, Westin, and Mandarin Oriental that will open during this time.

Colliers Philippines is likewise optimistic about the office sector because it anticipates that the yearly completion rate of new office space will return to the pre-POGO range of between 450,000 and 550,000 square meters (sqm).

Approximately 543,300 square meters are expected to be a finished year between 2023 and 2026, according to Kevin Jara, associate director for office services-tenant representation.

In the first half of 2022, demand for office space increased to 325,100 sqm, up 62 percent from 200,700 sqm during the same period in 2017.

As more traditional occupiers execute RTO (return to office) and outsourcing corporations pursue their development plans, Jara continued, “Colliers is starting to see a boost in demand for office space.”

In 2023, rental prices are anticipated to increase.

As 9,000 units were already sold in the first half of 2022, the overall take-up for condominium units in Metro Manila is expected to exceed 12,000 units in the residential sector by 2021.

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