Condo Demand near CBDs up 40% as PEZA Mandates April Return to Office

As pre-pandemic activities resume, the return to the office seems to be the next big move towards normalcy. The latest Lamudi data reveals significant trends in commercial property demand, with leads for warehouses, offices, and buildings for rent showing double-digit growth from 4Q 2021 to 1Q 2022.

The uptrend is aligned with the recent Philippine Economic Zone Authority (PEZA) announcement ordering a 100% return to office for all registered IT-BPO firms starting Apr 1, 2022. The mandate is consistent with existing laws requiring all companies to operate within the ecozones to avail themselves of tax incentives.

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CBD-Hosting Cities’ Robust Demand

CBD-hosting cities in Metro Manila are brewing with strong commercial property appetite. Upticks in residential rental inquiries in the same period point to a return to the metro as employees gear for face-to-face work.

In the financial capital of the country Makati, the P100K to P200K price range attracted the largest share of leads for commercial properties to rent in Lamudi in 1Q 2022. Offices followed by buildings and retail were the most popular commercial subcategories on Lamudi in the same period.

At the same time, demand for residential rentals in Makati grew significantly with leads increasing by roughly 40% from 4Q 2021 to 1Q 2022. Inquiries from property seekers outside of the metro increased during this period, with seekers from Cebu City and Calamba joining Imus and Angeles as part of the top sources of leads for the city.

In Pasig, the city hosting Ortigas Center, the leads for commercial properties saw a double-digit increase in percentage from 4Q 2021 to 1Q 2022. In terms of the most popular price segment for commercial properties for rent, the P100K to 200K generated the most leads in the first quarter of this year. In the same period, offices overtook warehouses as the most searched subcategory for commercial properties in the city. This coincides with an uptick in inquiries for residential rentals, which shot up by 28% quarter-on-quarter in 1Q 2022.

The leads for commercial properties in Quezon City had a double-digit increase in percentage from 4Q 2021 to 1Q 2022, with commercial rental properties priced P100K to 200K garnering the most leads.

Transition to the Better Normal of Work

For two years, work-from-home (WFH) has become the norm amid the pandemic. However, with the favorable trends now, the number of coronavirus cases declining and lockdown restrictions easing, more businesses are urging workers to come back to the workplace.

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“While this offers promising opportunities for real estate players, it also presents challenges, primarily in making commercial spaces appealing to employees who have become used to working from home,” Lamudi CEO Kenneth Stern said.

Stern mentioned that it’s essential to have value-adding amenities that promote work-life balance. These include daycare facilities that allow working mothers to bring their children to the workplace, and fitness centers that make it easy for professionals to embrace an active lifestyle.

Know more about the trends taking shape in the commercial property sector and meet up with other real estate professionals at Lamudi Link, Lamudi’s broker networking night, happening this April 7, 5PM at Servcorp, Philippine Stock Exchange Tower, BGC.

Visit https://www.lamudi.com.ph/ for more information.

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The article was originally published in Lamudi.

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