Expert Insights: Future of Office in 2024

The future of office real estate in the Philippines is expected to be significantly transformed by several key trends, including:

1. Flexible Workspaces. Demand may continue to shift from large, traditional office spaces to smaller, more flexible spaces. Since the current workforce highly values work-life balance and flexibility, many companies are pushed to create modern office environments that accommodate the employees’ well-being and are conducive for collaboration.

2. Technology and Automation. Technological advancements will further enable hybrid work and collaboration. More companies are seen to be investing in automation to improve efficiency and the experience of their employees.

3. Sustainability. As we have mentioned in our previous reports, more businesses prefer to locate in newer, Grade-A buildings that are designed with more sustainable materials and equipped with upgraded green technology such as energy-efficient systems, water conservation measures, and green spaces.

4. Growth Beyond Metro Manila. The increase in demand for office outside Metro Manila, namely in regional cities such as Metro Cebu, Metro Clark, Iloilo, Bacolod, or Davao, should trigger developers to construct new Grade-A office buildings or introduce new business districts. With the expansion of the IT-BPM sector outside Metro Manila, the future of these markets will continue to grow.

Overall, the future of office real estate in the Philippines is seen to be dynamic and adaptable, as it has been in the past few years. Companies that can embrace these trends and create workspaces that meet the evolving needs of their employees will be best positioned for success in the years to come.

KMC Savills is a full-service real estate firm committed to providing client-centric Occupier Services. Make sound investment decisions with the help of our experts! Connect with our Executive Director for Occupier Services, Andy Gomez.