The hotel recently introduced the Presidential Villa, a 630.2-square-meter private retreat overlooking Taal Lake.

The villa features a grand foyer and living area, formal dining room, expansive Master Suite with veranda views of Taal Lake, and complementary King and Twin bedrooms.

The villa also includes premium bath amenities, personalized butler service, expansive balcony and deck spaces, and exclusive access features.

The development strengthens the property鈥檚 position as a lifestyle and wellness destination, offering guests a short escape from the city with direct views of Taal Lake and Volcano.

“The Presidential Villa really encapsulates who we are as a property鈥攕pacious, private, and fully oriented toward those uninterrupted views of Taal Lake and Volcano.鈥� Taal Vista Hotel General Manager Ramon Makilan said in a written interview.

鈥淎t Taal Vista Hotel, our distinction really comes from heritage and location. There鈥檚 an authenticity to the experience that you can鈥檛 replicate. The Presidential Villa builds on that by offering a heightened level of privacy, space, and personalized service鈥攁ll set against the iconic Taal Lake and Volcano backdrop,鈥� he said.

Mr. Makilan said the hotel incorporated locally sourced materials and handcrafted elements throughout the villa鈥檚 interiors to highlight local craftsmanship and create a more authentic guest experience.

According to Mr. Makilan, while Taal Vista Hotel’s positioning is premium, its broader impact especially economically鈥攔emains inclusive and far-reaching.

“A large portion of both our team and supplier base is locally sourced, which is something we consciously prioritize,” Mr. Makilan said.

“A significant part of Taal Vista Hotel’s role is supporting the local economy鈥攖hrough employment, partnerships, and contributing to tourism activity in the area,” he said.鈥� Kaizzer Angela Marie V. Manuba

In its Q1 Market Beat report for Metro Manila, Cushman & Wakefield said current economic headwinds have placed capital values under 鈥渟ignificant downward pressure,鈥� driving developers to delay new project launches and stall high-risk investments.

鈥淪everal have taken decisive steps that signal caution hardening into a structural shift: expansion timelines are being pushed back, portfolio decisions placed firmly on hold, and operational priorities redirected toward cost containment,鈥� the report read.

鈥淔or investors, heightened risk perceptions reinforce the imperative of disciplined financial management, with adaptive planning replacing growth ambitions and positioning resilience as the defining strategy in real estate.鈥�

The Philippine economy grew by 2.8% in the first quarter, the weakest pace since the pandemic, while April inflation accelerated to 7.2%, exceeding market expectations.

Inflation is also projected to breach the central bank鈥檚 2%-4% target, driven by rising oil prices and a weak peso.

The Bangko Sentral ng Pilipinas (BSP) also increased its benchmark interest rate to 4.5%, signaling more hikes as inflation remains elevated.

Cushman & Wakefield also noted that rising energy costs, supply disruption and construction inflation have weighed occupier optimism.

鈥淥ccupiers, confronted with rising expenses and uncertain delivery timelines, are reassessing expansion strategies 鈥� delaying relocations, scaling back fit-outs, and renegotiating leases to maintain flexibility,鈥� it said, adding other local challenges such as the corruption linked to flood control projects add up to the heightened risk perception.

鈥淚f the crisis extends over a prolonged period, expansion timelines may be re-evaluated, portfolio decisions deferred, and operational strategies adjusted toward cost containment and resilience.鈥�

Average gross office yields decreased to 6.70% in the first quarter of the year, dropping by 110 basis points (bps) quarter on quarter and 112 bps year on year.

Prime assets in Makati, Bonifacio Global City, and Ortigas remained stable, while non-prime assets faced higher vacancy risks and weaker demand.

鈥淲ith the BSP raising policy rates, borrowing costs are higher, but the resilience of prime offices underscores investor preference for quality, while non-prime assets remain more exposed to cyclical pressures,鈥� the report read.

Warehousing and industrial spaces remained resilient, underpinned by steady logistics demand and domestic supply chain requirements, Cushman & Wakefield said, while essential retail properties hold firm, with stable occupancy and reliable rental income.

鈥淐oncentrating on these asset classes enables investors and landlords to safeguard cash flow and mitigate risk when broader market conditions weaken,鈥� it said.

鈥淭his shift highlights how defensive property types are increasingly viewed as safe havens, offering stability amid prolonged economic uncertainty.鈥� 鈥� Juliana Chloe A. Gonzales

Around 85,000 sq.m. of Grade A office space will be introduced from 2026 to 2029, the firm said in its special market report. It will largely be driven by the business process outsourcing segment, accounting for 35% of demand, and information technology segment (25%).

The report said Gokongwei-led Robinsons Land Corp. is projected to lead the 322,000-sq.m. office space expansion in 2027, with the launch of Cybergate Victoria in April bringing over 25,000 sq.m. of gross leasable space.

Sy-led SM Prime and Tan-led Megaworld are also slated to launch office properties that would put Davao鈥檚 supply at a record-high of 381,000 sq.m. in 2029.

These developments were driven by the province鈥檚 fiscal revenue of P3.13 million as of 2024, placing Davao as the second most fiscally productive for highly urbanized cities in Mindanao behind Cagayan de Oro, Misamis Oriental at P4.31 million.

PRIME Philippines said further rent segmentation will follow the introduction of new office spaces from major real estate developers.

Davao province鈥檚 office market recorded an occupancy rate of 96% in 2025, with estimated 12,000 sq.m. of vacant spaces left. It is 3,000 sq.m. lower than 2024鈥檚 record of 15,000 sq.m. in vacant spaces with 95% spaces occupied.

The firm said total net take-up in 2025 was around 10,000 sq.m. with no additional supply. The last recorded peak was in 2022 with around 58,000 sq.m. in net take-up and 35,000 sq.m. in additional supply, totaling to 93,000 sq.m. in office supply.

In the first quarter, information technology and business process management (IT-BPM) expansions from companies like Alorica, Concentrix, Connext, ibex, iQOR, Ingenuity, Sixeleven, Smart Solutions, and VXI took up a combined total of 284,000 sq.m. in office occupancy, or 75% of the total supply. The remaining 25% of supply went to traditional offices.

The consultancy firm projected that the lease rate will range from P500 to P900 per square meter, up by roughly P100 from 2025鈥檚 reported P500-to-P800 rate. Average rates projected for the rest of the year stand at P640, up by around P30 from last year鈥檚 P610 average. 鈥� Juliana Chloe A. Gonzales

The awards, held from May 6 to 7 at the Bangkok Marriott Marquis Queen鈥檚 Park, recognized Yume at Riverpark, the developer鈥檚 flagship property within its Riverpark estate in General Trias, Cavite. It was awarded five stars under the Best Residential Interior Show Home category.

Once completed, the 18-hectare horizontal residential project will house 296 lots ranging from 300 to 257 square meters (sq.m.). It will be strategically located near major roads like the Cavite-Laguna Expressway and transit systems like the future Light Rail Transit Line 6A Cavite Extension and the Philippine National Railway Southrail. It is expected to be turned over within 2026.

Yume at Riverpark was also recognized in the Residential Development 20+ Units category.

Federal Land NRE Global鈥檚 The Observatory was also awarded five stars for the Best Residential High Rise Architecture category.

The Observatory, located in Barangay Barangka Ilaya, Mandaluyong, is near hospitals like The Medical City in Ortigas and corporate head offices like the Asian Development Bank.

It will offer studio units, spanning from 28 to 33.5 sq.m., one-to-three-bedroom units from 45.5 to 148 sq.m., and penthouses from 155.5 to 202 sq.m.

The Observatory was also given accolades in the Residential High Rise Development and Apartment/Condominium Development categories. Target completion for this project is in December 2030.

Federal Land NRE Global brought home five out of 23 awards won by Philippine companies, the most awards given by the organizer.

The International Property Awards is a globally recognized award-giving body that celebrates the highest levels of achievement from companies in all sectors of the property and real estate industry. The awards are divided per region across Africa, Asia-Pacific, Arabia, Canada, Caribbean, Central & South America, Europe, UK and USA. 鈥� Juliana Chloe A. Gonzales

THE PASSAGE of the long-overdue measure that will institutionalize land use planning could redefine the Philippine property landscape, with market analysts citing long-term benefits even as they warned of increased regulatory risks and higher compliance costs for developers.

The proposed National Land Use Act (NLUA), which will establish a unified framework for land use, gained ground after the House of Representatives approved House Bill No. 8466 on final reading last week.

鈥淔rom a market and advisory standpoint, the proposed protections introduce an added layer of regulatory risk for developers holding agricultural land banks intended for future conversion,鈥� Dino Mari G. Palanca, director for marketing and research at Savills Philippines, told 大象传媒 in an e-mailed response to questions on Thursday.

鈥淒evelopers with ongoing planning or incomplete approvals may experience delays, timeline adjustments, or higher compliance costs, particularly if existing land classifications conflict with the new national framework.鈥�

While he expects near-term regulatory risks, Mr. Palanca said measure may encourage more disciplined due diligence, clearer project phasing, and greater focus on already designated settlement areas.

鈥淥ver the longer term, the policy could also help temper speculative land banking and encourage more demand- and infrastructure-driven development,鈥� he said.

The framework can reduce some of the regulatory ambiguity that slows down mixed-use and township projects for the developers, Mr. Palanca said, but it will still depend on other factors like alignment with the local government units, transitional provisions, and the clarity of implementing the rules.

The measure could also positively influence foreign direct investments and joint ventures, Savills said, provided there is a transparent and predictable land development framework.

鈥淎 clearer framework could improve visibility on where long-term development can realistically occur, helping reduce entitlement and regulatory risks for large-scale projects,鈥� he said.

鈥淭his may encourage more strategic partnerships between foreign capital and local developers, particularly in township, industrial, logistics, tourism, and infrastructure-linked developments.鈥�

The policy, supported by improvements in the ease of doing business and investment incentives, could help position the Philippines as a more competitive destination for long-term real estate and infrastructure investments.

Joey Roi Bondoc, director for research at Colliers Philippines, said that the NLUA will likely redefine the property landscape.

鈥淏y mandating the protection of prime agricultural lands and tightening penalties for unauthorized conversion, the law impacts developers by limiting development options, and enforcing stricter, centralized land-use standards,鈥� Mr. Bondoc told 大象传媒 in a Viber message on Friday.

Mr. Bondoc stated this will not completely affect developers with existing land banks earmarked for conversion or expansion.

鈥淭he bill鈥檚 sanctions mainly target developers with illegal, speculative, or non-performing land banking such as land conversions carried out without Department of Agrarian Reform (DAR) approval, or projects that obtain conversion orders but remain idle without valid justification,鈥� he clarified.

鈥淭he measure mandates compliance and pushes for sustainable development. Property firms that comply with the measure and its provisions have nothing to worry about.鈥�

On the protection of ancestral lands and natural resources, he explained that large-scale private sector-led projects nearby environmentally or culturally significant areas will be heavily protected as the framework shifts towards a balanced economic development with focus on environmental protection.

鈥淲e believe that this should likely benefit property developers in the long term. The proposed bill aims to improve disaster resiliency by guiding development away from hazardprone zones,鈥� he said, noting the measure reduces risk of delays and legal disputes stemming from overlapping claims or uncertain land status.

Colliers believes that the measure bodes well for the Philippine property sector over the long term, as it should balance the interest of farmers, developers, consumers, and property investors.

鈥淯rban planners have long warned that Metro Manila loses an estimated P3 billion daily due to traffic congestion, reflecting lost work hours, delayed logistics, and reduced productivity,鈥� the company said in a statement on Friday.

Long and unpredictable commutes are also associated with higher stress levels, lower workforce efficiency, and less time for rest and family 鈥� effects that become more pronounced during periods of economic or social strain.

Ayala Land addresses this through its 鈥�15-minute city鈥� framework, shifting to walkable, mixed-use estates.

鈥淭he 鈥�15-minute city鈥� has gained international attention, but its core idea is straightforward: work, schools, groceries, healthcare, parks, and daily services should be reachable within a short walk or bike ride,鈥� Ayala Land said.

鈥淲hat makes the model effective is not density alone, but integration.鈥�

In business districts like Makati and Bonifacio Global City in Taguig, offices and corporate centers are linked directly to crucial transportation hubs like the One Ayala Terminal, which serves around 1 million workers every day.

Former Ayala Land Chief Executive Officer Bernard Vincent O. Dy said the company gives utmost importance to having well-designed public transportation facilities.

鈥淎 large percentage of the daytime population of Makati are commuters. Being an inclusive city, we would like to ensure that we provide the proper transport infrastructure to serve all members of our community,鈥� he said during the inauguration of the One Ayala Terminal in November 2022.

The development of the 200-hectare Metro Nuvali within the Nuvali estate in Laguna will also take this approach as the next central business district in the south.

Metro Nuvali will be divided into three districts; the 100-hectare (ha) Lakeside District, which will house the rebranded Ayala Malls Nuvali (formerly known as Solenad) and Seda Hotel, the 40-ha Central District, and the 60-ha Civic District, which includes the Santa Rosa City Complex.

Once completed in 2028, its accessibility will further expand with the upcoming Carmona 鈥� Bi帽an Link Road, targeted for completion in 2028, linking the district to South Luzon Expressway, Cavite-Laguna Expressway, and the future Cavite Tagaytay Batangas Expressway, the developer said in a statement in November 2025.

Other estates like Vertis North in Quezon City, Arca South in Taguig, and Vermosa in Cavite are also being developed as mixed-use districts where employment, commerce, and daily living are concentrated within walkable environments.

The company extended this proximity-led approach beyond established business districts, bringing everyday convenience into emerging growth areas where congestion can be avoided rather than addressed later.

Shares in Ayala Land rose by 54 centavos or 3.46% to close at P16.14. 鈥� Juliana Chloe A. Gonzales

Shang Bauhinia is a 52-storey vertical gated luxury residential development within Brgy. Kasambagan, Cebu. It is slated for completion in December 2031.

The property is currently in the pre-selling phase.

A total of 1,069 units of the residential project will be divided into two types: typical and signature units. Typical units found in Shang Bauhinia Residences will offer studio, one-bedroom, and two-bedroom units ranging from an estimated 35 to 104 square meters (sq.m.); while Shang Bauhinia Signature will offer two- and three-bedroom units ranging between 110 to 212 sq.m.

Although residents from both types of units will have access to the property鈥檚 4,015-sq.m. clubhouse, only residents from the signature units can access the 1,105-sq.m. Sky Lounge.

The Clubhouse will be home to two floors of amenities, including a gym and wellness zone, library, pools, gardens, children鈥檚 playgrounds, cinema, function rooms, and a ballroom. These amenities will be found on the 7^th and 8^th floors of the property.

Shang Bauhinia is strategically located nearby business centers like the Cebu IT Park and the Cebu Business Park, and educational institutions like the University of San Carlos Talamban Campus and Sacred Heart School-Ateneo de Cebu.

The developer said it partnered with P&T Group for the conceptual architecture, and with FM Architettura for interior design. The companies are also responsible for the development of other Shang Properties developments like Haraya Residences in the Bridgetowne estate, and Shang Summit in Quezon City.

Shares in Shang Properties remain unchanged at P3.21 on Monday. 鈥� Juliana Chloe A. Gonzales

Joey Roi Bondoc, director for research at Colliers Philippines, said segments beyond traditional food and beverage (F&B) are emerging as key traffic drivers, particularly those tied to lifestyle and experience.

鈥淣umber one, home furnishing. So, these are very popular segments right now. You look at the likes of IKEA, Anko, even Flying Tiger Copenhagen. They have been attracting a massive footprint,鈥� He said in an interview with 大象传媒.

He noted that demand for home-related retail is likely to strengthen alongside the residential market.

鈥淩emember, in Metro Manila alone, we have about close to 30,000 unsold ready for occupancy condos. So, imagine once those condos are sold, the owners will need appliances, will need furnishing, furniture. So, that’s a very good market,鈥� he said.

Apart from home furnishing, Mr. Bondoc pointed to the growing importance of experiential or immersive retail formats in attracting shoppers.

鈥淥ne example is having, say, pickleball courts. So, that’s a very good opportunity because you actually attract a huge consumer traffic footfall because the pickleball players, they go there not just alone,鈥� he said.

鈥淪o, they have their competitors, they have their families, friends playing. So, you have experiential, immersive retail鈥� these are segments that are very popular right now aside from food and beverage,鈥� he added.

Hybrid concepts that combine retail with dining or leisure elements are also gaining traction, he said.

鈥淚 think one key trend that we have been seeing, if you look at the clothing stores, Muji, what do they have? Coffee shop. So, they have their own coffee shop within their own retail space,鈥� Mr. Bondoc said.

鈥淎nd why is that important? And why is this attracting a lot of consumers? After you sip coffee, you shop again鈥� when they stay longer, they spend more,鈥� he added.

Mr. Bondoc said malls must offer unique experiences to draw consumers, especially as rising fuel costs make discretionary trips less attractive.

鈥淚 think you should really make sure that this space that will be visited by people offers something unique鈥� you need to differentiate,鈥� he said.

鈥淒ifferentiate, innovate. Otherwise, you will evaporate,鈥� he added.

Colliers data showed that retail vacancy in Metro Manila continued to improve to about 10.8% in the first quarter, from 11.4% in the third quarter of 2025, although a full return to pre-pandemic levels may take longer due to macroeconomic headwinds.

At the same time, supply growth has moderated, with average annual new retail space projected at around 113,000 square meters (sq.m.) from 2026 to 2028, significantly lower than the 322,000 sq.m. recorded between 2017 and 2019.

In the first quarter alone, about 96,000 sq.m. of new retail space was completed, bringing total leasable space in Metro Manila to 7.9 million sq.m., according to the Colliers report.

GEN Z, MILLENNIALS KEY MARKET
Mr. Bondoc said younger consumers remain a critical market for retailers despite inflation, particularly those seeking shared and social experiences.

鈥淚 think you need to look at the young, the Gen Z, millennial-dominated workforce. This is a market that we need to consider,鈥� he said.

鈥淭hey don’t just shop online. They’re also shopping in a physical store鈥� they want to do activities together,鈥� he added.

He said creating visually appealing and socially engaging spaces can help attract these consumers.

鈥淓xperience is very important. Make your spaces Instagrammable,鈥� he said.

Colliers noted that F&B tenants continue to dominate new retail entrants, accounting for 49% of upcoming retailers in the first quarter, up from 43% previously, underscoring the continued importance of experiential and lifestyle-driven offerings.

However, the firm warned that inflation and geopolitical tensions could dampen retail recovery, with consumers likely to cut back on discretionary spending and retailers facing higher operating costs.

Still, Mr. Bondoc said malls that adapt to changing consumer preferences and invest in differentiated concepts are better positioned to sustain traffic.

鈥淪o, aside from F&B, the immersive experiential鈥� you have the coffee shops or clothing stores that have coffee shops. And then, you have the home furnishing. So, these are the three segments that are really attracting a lot of foot traffic,鈥� he said. 鈥� Juliana Chloe A. Gonzales

The planned development will rise in the South Drive neighborhood, near key tourist destinations and commercial landmarks such as Baguio Country Club, The Mansion, Camp John Hay, and Mines View Park, the company said in a statement last week.

The project will consist of two seven-storey mid-rise buildings with three levels of basement parking, offering what the company described as 鈥渁n intentionally limited collection of units.鈥�

Unit sizes will range from 112.5 to 175 square meters, with prices averaging between P31.2 million and P48.3 million.

The condominium is expected to generate about P3.04 billion in sales revenue, with total project costs estimated at around P2.05 billion, DMCI Project Developers said in an e-mailed reply to questions.

鈥淧roperties within this district have historically demonstrated resilience in value, supported by limited supply, strong demand for second homes, and the area鈥檚 reputation as a preferred residential enclave,鈥� the company said.

One South Drive will add to DMCI鈥檚 existing residential portfolio in Baguio, which includes Bristle Ridge and Outlook Residences.

DMCI Holdings reported P15.1 billion in consolidated net income for 2025, driven by strong contributions from its real estate segment and other businesses. Capital expenditures rose 11% to P24.6 billion from P22.2 billion in the fourth quarter of last year.

DMCI Homes contributed P3.3 billion to total earnings, supported by higher residential revenues, increased rental and financial income, and a one-off gain from the settlement of a previous investment claim.

The company said it expects its real estate arm to account for about 65% of total capital expenditures this year, with P15.5 billion allocated for land banking and project development. 鈥� Juliana Chloe A. Gonzales

Located within the 27-hectare Cloverleaf estate in Balintawak, the commercial hub will be positioned near major thoroughfares such as the Metro Manila Skyway, Epifanio Delos Santos Avenue, and the North Luzon Expressway via the Balintawak-Cloverleaf Interchange, providing access to northern areas including Bulacan, Valenzuela, and Pampanga, the company said in a statement on Monday.

The site is also within walking distance of the LRT-1 Balintawak station, linking it to the broader Metro Manila rail network, including LRT Lines 1 and 2, and MRT Line 3.

Ayala Land Estates said upcoming infrastructure projects such as the Unified Grand Central Station, MRT-7, the Metro Manila Subway, and the North-South Commuter Railway are expected to boost foot traffic to the development.

鈥淭hese projects will help reinforce Cloverleaf as a transit-oriented development and a future-ready address for business and investment,鈥� the company said.

The company said the expansion follows its delivery of P37.5 billion in total revenue and P5.4 billion in net income.

Leasing and hospitality revenues reached P12.6 billion, accounting for a 9% year-on-year increase, driven by improved occupancy, higher tenant sales, and redevelopment initiatives across its commercial portfolio.

Shopping center revenues rose to P5.8 billion, supported by increased foot traffic and the opening of Ayala Malls Arca South in Taguig, which added 17,500 square meters of gross leasable area.

鈥淥ur leasing platform is delivering steady growth and providing greater stability to the business,鈥� Ayala Land President and Chief Executive Officer Anna Ma. Margarita B. Dy said in a statement last week.

鈥淭hese results reflect the strength of our diversified portfolio and the continued ramp-up of assets we have invested in over the past few years,鈥� she added.

Ayala Land, Inc. said it plans to expand its recurring income base with more than 270,000 square meters of new mall and office space as part of its long-term strategy to build a balanced portfolio. 鈥� Juliana Chloe A. Gonzales

In a statement on Monday, the Gokongwei-led developer said it received the 3G ESG Championship Award (Philippines) and the 3G Excellence in Green Innovation and Solutions Award during ceremonies held in Singapore on April 28.

The awards, organized by UK-based Cambridge IFA, assess organizations based on transparency, sustainability, and social responsibility.

RLC said the recognition reflects its sustainability initiatives across its property portfolio, including the use of rooftop solar panels in malls, energy efficiency measures, and renewable energy adoption in office buildings.

The company also cited waste and water management programs, as well as efforts to secure green building certifications.

On the social front, RLC said its programs are implemented through its foundation, which partners with local governments and organizations for reforestation, scholarships, medical missions, and disaster response.

The latest awards mark the company鈥檚 fourth consecutive year of recognition from the 3G Awards program. 鈥� ALB

鈥淲hile rising fuel costs and geopolitical tensions may prompt some companies to temporarily revisit work-from-home arrangements, we do not expect this to materially reverse the broader return-to-office (RTO) trajectory,鈥� Joe Curran, chief executive officer of Savills Philippines, told 大象传媒 in an e-mailed reply to questions on Friday last week.

He said that most multinational firms and information technology and business process management (IT-BPM) occupiers continue to operate under structured hybrid models, with clear in-office requirements driven by productivity, collaboration, and client compliance.

鈥淎ny shift toward remote work in the near term is likely to be temporary until the current crisis subsides,鈥� he added.

Kath Ryne A. Taburada, research manager for office services 鈥� tenant representation at Colliers Philippines, said office demand may soften in the short term amid uncertainty from the Middle East conflict.

鈥淲e are already seeing some companies delay or pause office decisions as they reassess their near-term business outlook. The wider use of WFH arrangements, largely driven by transportation challenges, could also weigh on office take up,鈥� she said in a separate e-mail.

Mr. Curran said leasing activity is expected to remain steady despite near-term adjustments in workplace strategies, with firms continuing to expand and optimize their office footprints.

鈥淚n terms of office demand, leasing activity is expected to remain steady in the coming months, supported by ongoing expansions from traditional firms and sustained demand from the IT-BPM sector. External shocks such as fuel price volatility tend to influence workplace policies at the margin, but rarely lead to a meaningful reduction in overall space requirements. Instead, we are seeing companies focus more on optimizing location, prioritizing accessibility, proximity to talent, and cost efficiency, rather than reducing their footprint outright,鈥� he said.

He added that the office market is showing early signs of recovery, with vacancy rates expected to gradually stabilize as demand improves, particularly in core central business districts (CBDs).

鈥淩egarding vacancy, we anticipate gradual stabilization over the course of the year. While elevated supply in certain submarkets will continue to keep vacancy rates relatively high in the near term, improving absorption, particularly in core CBDs, such as Bonifacio Global City (BGC), should help ease overall pressure. The market remains tenant favorable, but early signs of recovery are emerging as demand normalizes and previously vacated spaces are reabsorbed,鈥� Mr. Curran said.

鈥淥verall, the office sector remains resilient. The current environment may accelerate workplace evolution, but it reinforces the role of the office as a critical component of long-term business strategy,鈥� he added.

Ms. Taburada said companies are taking a cautious stance in the near term, prioritizing flexibility and employee welfare as they navigate uncertainty linked to geopolitical tensions and rising transport costs.

鈥淢any firms are prioritizing employee welfare and retention while ensuring business continuity, and WFH provides flexibility during this period of disruption. As a result, some occupiers may take more time before committing to new or expanded office space,鈥� she said.

She added that government measures, including temporary WFH arrangements for registered business enterprises (RBEs) registered with investment promotion agencies (IPAs), have provided clarity for firms adjusting their operations.

鈥淥n a positive note, the government has acted quickly by putting in place clear WFH guidelines, such as the temporary 90% WFH arrangement for IPA-registered RBEs. These measures give businesses immediate clarity on how to operate, allowing them to adjust work arrangements quickly even if longer-term office decisions are deferred,鈥� she said.

Despite short-term headwinds, Ms. Taburada said demand from key occupiers such as third-party outsourcers (3POs) and global capability centers (GCCs) is expected to remain intact.

鈥淟ooking beyond the near term, we expect demand from 3POs and GCCs to stabilize, supported by the sector鈥檚 generally positive outlook. These occupiers tend to take a longer-term view, and their expansion plans remain intact despite short-term disruptions,鈥� she said.

She noted that the full impact of the global oil crisis has yet to be reflected in first-quarter data but said vacancy risks remain contained due to a more disciplined supply pipeline.

鈥淭he full impact is still unclear as our first-quarter data does not yet capture the effects of the global oil crisis. In a worst-case scenario 鈥� similar to the early stages of the coronavirus disease 2019 (COVID-19) pandemic 鈥� office vacancy rates could rise and potentially go beyond 20% this year. That said, the market today is in a better position compared to the COVID-19 period. Office supply is much more controlled, with around 500,000 square meters (sq.m.) to come online this year and an average of about 300,000 sq.m. annually over the next four years,鈥� she said.

鈥淭his is significantly lower than the 900,000 to 1 million sq.m. delivered during the Philippine offshore gaming operator (POGO) years, as well as the 400,000 to 700,000 sq.m. added each year right after the COVID-19 pandemic hit. This tighter supply pipeline should help cushion the market and limit the rise in vacancy rates, even if demand softens in the short term,鈥� she added. 鈥� Juliana Chloe A. Gonzales

In a disclosure on Monday, the company said the Ilocandia Beach Club will be developed along the township鈥檚 1.4-kilometer coastline and will feature direct beach access, dining outlets, retail spaces, and recreational amenities.

The planned facility will include swimming pools, a fitness center, and lounge areas, among other features, Megaworld said.

鈥淥ur goal is to offer a beachside township experience in Ilocandia Coastown,鈥� said May Santos, head of sales and marketing for the township.

Megaworld said land development for the project is set to begin early next year.

The Ilocandia Coastown project is the company鈥檚 first township development in the Ilocos region and will include a town center, commercial and office spaces, hotels, and leisure facilities.

The township is located near the Fort Ilocandia Hotel, about 10 minutes from Laoag International Airport and within 30 minutes of Paoay Church, a UNESCO World Heritage Site.

Megaworld previously said it has started land clearing and infrastructure development in Ilocandia Coastown, including roads, utilities, and its first residential project, Ilocandia Beach Village.

The 19.4-hectare residential village will feature 446 lots ranging from 230 to 406 square meters, with amenities such as a clubhouse, swimming pool, and central park. The company said the project will also include underground cabling systems for utilities.

Lot turnover is scheduled for 2031, with expected sales of about P2 billion, based on earlier disclosures.

For 2025, Megaworld reported a 12% increase in attributable net income to P21 billion from P18.75 billion in 2024. Revenue rose by 4.4% to P79.12 billion from P75.77 billion, while expenses increased by 4.8% to P50.49 billion from P48.18 billion.

Megaworld shares closed at P2.05 on Monday, down 0.49%. 鈥� J.C.A. Gonzales

In a disclosure on Monday, the company said its consolidated revenue stood at P11.3 billion in 2025, slightly down from P11.6 billion in 2024.

Turnover consists of revenue from condominium sales, property rental, cinema, and hotel operations.

Sales of residential condominium units reached P3.6 billion, accounting for 32.14% of total turnover, down from 37.82% in the previous year. Revenue from property rental and cinema operations rose to P2.9 billion, a 7.41% increase from P2.7 billion in 2024.

Hotel operations, led by Shangri-La The Fort, Manila, generated P4.8 billion in revenue, representing 42.35% of total turnover and up by nearly 7% from P4.5 billion a year earlier.

Shang Properties said the decline in turnover was mainly due to lower condominium sales revenue, which was partly offset by higher income from property rental and hotel operations.

鈥淒ecrease in condominium sales of P757.2 million is due to the completed project, Shang Residences at Wack Wack,鈥� the company said.

鈥淭here is an increase in the number of units sold for the newly launched projects such as Shang Summit and Shang Bauhinia Residences, but it does not compensate with the decrease in sales of Shang Residences at Wack Wack,鈥� it added.

Revenue from rental and cinema operations increased by P192.6 million, driven mainly by higher occupancy rates and improved rental yields from office leasing at The Enterprise Center and mall operations at Shangri-La Plaza.

Revenue from hotel operations rose by P257.4 million, supported by higher occupancy at Shangri-La The Fort, Manila and increased income from other segments, including retail and residences.

Cost of sales and services rose to P4.7 billion, up by P441.2 million from P4.3 billion last year, while operating expenses fell to P2.5 billion, down by 21% from P3.2 billion a year earlier.

Other income declined by P5.2 billion, mainly due to lower fair value gains from investment properties compared with the previous year.

Shang Properties shares closed at P3.42 on Monday, down 0.87%. 鈥� Alexandria Grace C. Magno

鈥淭he Central is not just about buildings or businesses. It is about people,鈥� VESCO President and Chief Executive Officer Rosalie A. Escudero said in her speech.

鈥淚t鈥檚 about creating jobs for our compatriots, giving opportunities to local entrepreneurs, and building a place where families and communities can come together,鈥� she added.听

The Central, located in Brgy. Lalig, along KM91 of the Maharlika Highway, is adjacent to the upcoming South Luzon Expressway Toll Road Phase 4 (SLEX TR-4) interchange.听

鈥淭his place, along Maharlika Highway and near the future SLEX TR-4 will soon become a gateway,鈥� Ms. Escudero said. 鈥淎 meeting point of travelers, businesses, and families.鈥�

鈥淲e are seeing progress in our region – as more people pass through, the more opportunities there will be,鈥� she added in Filipino.听

The construction of the nine-hectare hub comprises nine phases and eyes completion in 2028. The first phase, which spans 2.14 hectares, is currently at 25% and will be completed by Q3 of 2026.听

According to Daniel Placido A. Escudero, business development strategist and head of commercial leasing at VESCO, the Central has 11 large flats that can be subdivided to meet tenants鈥� demands.

The establishment is expected to house both local businesses and international brands.

鈥淲e have actually some tenants already who plan to develop within this second quarter,鈥� he told听大象传媒听in an interview.听

鈥淎 pharmacy, a cafe, a food establishment, but we also want to feature MSMEs, local restaurants that will provide the taste and flavors and delicacies of the Quezon province,鈥� he added.听

Mr. Escudero noted that the commercial hub will include renewable energy sources as part of its power augmentation, in line with VESCO鈥檚 sustainability targets.听

鈥淗opefully, we鈥檒l be able to establish buildings that are partly powered by solar,鈥� he said.

鈥淲e already have plans to put up electric vehicle charging stations because we鈥檙e next to the Maharlika Highway, and basically, operate it as sustainably as possible,鈥� he added.

Renewable energy has long been part of Villa Escudero. The Arsenio Escudero Hydroelectric Power Plant, the country鈥檚 first hydroelectric plant, has sustained 鈥渆ssential power鈥� for the 800-hectare estate since 1937.

In 2024, Villa Escudero Plantations and Resort also launched its solar energy facility in partnership with Cebu-based renewable energy company Vivant Energy.听

The facility is composed of 400 solar panels, reducing the resort鈥檚 consumption of 310,000kWh from the power grid and 166 metric tons of carbon emissions. 鈥� Almira Louise S. Martinez

Ascott Ortigas Manila, a 229-unit serviced residence, will be redeveloped from the former Joy-Nostalg Hotel & Suites Manila, which closed in January 2026 for a comprehensive renovation covering guest rooms, public areas and food and beverage facilities.

Located directly across from the Asian Development Bank headquarters, the property is positioned to serve corporate, long-stay and leisure travelers, the company said in a statement on Monday. It will offer dining outlets, a spa, a fitness center, and event spaces upon reopening.

The project marks the debut of the flagship Ascott brand in the Ortigas central business district and is part of the company鈥檚 broader expansion in Southeast Asia.

Ascott said it recorded its strongest-ever signing performance in the region in 2025, adding more than 7,300 units, up 55% from 4,700 units in 2024, placing it among the top three hospitality companies in Southeast Asia by new signings, according to Horwath HTL.

The company has more than 200 operational properties in the region and a pipeline of about 150 properties across Southeast Asia, spanning multiple typologies and markets. More than 25 of these properties are expected to open within the next 12 months.

Its pipeline includes projects across Vietnam, Thailand, Indonesia, Malaysia, Singapore and the Philippines, reflecting strong owner confidence in its brands and its ability to convert signings into operational properties at scale.

In the Philippines, expansion includes new cities such as Davao and Bi帽an, as part of efforts to extend its footprint beyond established gateway markets.

Ascott said about 30% of its Southeast Asia pipeline will be delivered through property conversions, allowing it to reposition existing assets and accelerate market entry. The Ortigas project is part of this strategy.

The company said its regional growth is supported by improving tourism fundamentals, including rising intra-ASEAN travel demand, higher visitor spending and improving regional connectivity following the near-complete recovery of the travel sector in 2025.

At the same time, Ascott noted that Southeast Asia鈥檚 hotel market remains highly fragmented, with independent and unbranded properties accounting for most supply, creating opportunities for international operators to expand through branding, distribution and management capabilities.

鈥淪outheast Asia continues to be one of the most dynamic hospitality markets in the world and Ascott is well positioned to capture the opportunity,鈥� Serena Lim, chief growth officer at Ascott, said, citing the firm鈥檚 multi-typology strategy spanning serviced residences, hotels, resorts, social living properties and branded residences.

The company said its expansion is anchored on long-term partnerships with property owners and a 鈥�flex-hybrid鈥� model that allows it to scale across different asset types.

Wong Kar Ling, chief strategy officer and managing director for Southeast Asia, said the upcoming wave of openings reinforces the region鈥檚 role as both a core growth engine and a showcase for Ascott鈥檚 multi-typology brand strategy.

鈥淭he upcoming wave of openings reinforces Southeast Asia鈥檚 role as both a core growth engine and a showcase for Ascott鈥檚 multi-typology brand strategy,鈥� she said.

Ascott鈥檚 pipeline includes developments such as mixed-use and meetings-focused properties, beachfront resorts in emerging leisure destinations and heritage conversions, as well as social living concepts across the region.

Resort developments are expected to be a major growth driver, with projects planned across Vietnam, Indonesia, the Philippines, Malaysia and Thailand. 鈥� Juliana Chloe A. Gonzales

In Colliers鈥� view, demand for horizontal projects should partly be driven by remittance-receiving households and end-users seeking less dense communities outside Metro Manila. Given the Middle East crisis, developers should also explore other overseas Filipino worker (OFW) markets that continue to show sustained demand for property.

Meanwhile, luxury and leisure-themed developments are likely to remain attractive investment options, particularly among affluent buyers seeking price appreciation.

CAPTURING DEMAND FOR LOT-ONLY PROJECTS
Colliers recommends that developers assess the viability of launching more lot-only projects. These developments are attractive due to larger cuts, greener and more open spaces, and potential for price appreciation. Data show that lot-only developments in key regions 鈥� including Southern and Central Luzon, Central Visayas, Western Visayas, and Davao 鈥� recorded annual price increases of 5% to 13% from 2016 to 2025.

Demand for lot-only projects is also gaining traction within Metro Manila. With limited supply and rising demand, prices are expected to increase in the coming years. Developers traditionally focused on mid-income projects are now targeting higher-priced segments, emphasizing expansive horizontal communities.

For example, SM Prime launched its Signature series, offering premium residential lots across several provinces and Metro Manila cities, including Muntinlupa, Makati, Pasay, Para帽aque, Taguig, Pasig, Cavite, Batangas, Palawan and Cebu. The first project will be located in Susana Heights, Muntinlupa.

UNEARTHING MARKETS IN PERIPHERAL AREAS
Limited land availability and rising prices in central business districts are pushing developers and investors to consider condominium projects in Metro Manila鈥檚 fringe areas. A Residential Survey conducted in the second quarter of 2025 showed that respondents are considering condominium units in areas such as the Makati fringe, as well as parts of Quezon City and Pasig.

Property firms should also assess the feasibility of student-centric condominiums, particularly near universities in Quezon City, Manila and Pasay. Data show that projects along Katipunan in Quezon City are performing well, with prices ranging from P2 million to P11 million and an average take-up rate of nearly 60% as of the fourth quarter of 2025. Recently launched projects in the area include Arthaland鈥檚 Liv North and Avida Land鈥檚 The Heights Katipunan.

OPPORTUNE TIME FOR BUYERS
As of end-2025, unsold condominium inventory in Metro Manila reached 79,200 units, including 29,400 ready-for-occupancy units. Areas with high unsold inventory include Cubao-New Manila in Quezon City, Manila, the Bay Area, Pasig and Alabang-Las Pi帽as.

Buyers should monitor these locations, as developers are likely to offer discounts and flexible payment terms due to slower demand and higher vacancies. For end-users, this presents a strong opportunity to acquire ready-for-occupancy units, given the availability of nearly 30,000 units near major business hubs.

NEW RESIDENTIAL HUB: C5 CORRIDOR
Colliers Philippines expects 13,000 new condominium units to be completed in Metro Manila in 2026, up 74% year over year. The C5 corridor is expected to account for about one-third of the new supply. Notable projects include RLC Residences鈥� Cirrus Residences, SMDC鈥檚 Gem Residences, and Ayala Land Premier鈥檚 Parklinks North Tower.

By the end of 2026, the Bay Area is projected to surpass Fort Bonifacio as the largest residential hub in Metro Manila. However, completion is expected to slow beyond 2026 due to fewer condominium launches in recent years, partly caused by significant cancellations in the pre-selling segment. From 2026 to 2028, annual deliveries are projected to average 7,000 units, down from the 14,000 yearly average recorded from 2017 to 2019, a period driven by demand from Philippine offshore gaming operators.

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

The company said it broke ground on Cybergate Victoria, an 11-storey office development located along J.P. Laurel Avenue in Barangay Poblacion.

The project will offer more than 25,000 square meters of gross leasable area, with floor plates of about 2,700 square meters designed to accommodate corporate tenants, including those in the information technology and business process management sector, it said in a statement on Monday.

Cybergate Victoria will be RLC鈥檚 third office development in Davao City.

The company said the project is positioned within an established commercial corridor with access to transportation and nearby commercial and institutional facilities.

RLC said the building will incorporate features such as column-free office spaces, parking facilities and provisions for electric vehicle charging.

The project is also targeting Leadership in Energy and Environmental Design certification. 鈥� ALB

Leif P. Bajarias, executive president for finance and operations at AppleOne Group Inc., said one key driver is the resilient passenger traffic at Mactan-Cebu International Airport (MCIA), the province鈥檚 primary gateway.

In January, the airport recorded an all-time high of 1.3 million passengers, up 15% from January 2025, according to the Mactan-Cebu International Airport Authority website.

The same month also marked the celebration of the province鈥檚 biggest annual festival, Sinulog, which draws millions of tourists and helps boost the local local economy.

Passenger traffic declined by 15% in February, with nearly 800,000 total passengers. The MCIAA has yet to release the figures for March.

Mr. Bajarias said that, like many other sectors, the hospitality industry is also feeling the ripple effects of the conflict in the Middle East, but maintained that the outlook remains positive.

鈥淲e鈥檙e very positive. And if you refer to the current ordeal, of course everybody is affected. The hospitality sector is affected because we also rely on International guests,鈥� he said during the Mahi Center launch press conference.

He also said that the pandemic was more uncertain than the current situation, adding that resilience remains the key response for now.

As for Fairfield by Marriott Cebu Mactan, one of the anchor components of Mahi Center, a mixed-use development by AppleOne Group, both were officially launched on Wednesday.

The nine-story hotel has been posting steady occupancy levels since its soft launch in December, Dottie V. W褜rgler, multi-property general manager of Sheraton Cebu Mactan Resort and Fairfield by Marriott Cebu Mactan said.

鈥淚t has been steady, at least from the time that we opened in December through the first full quarter of 2026. Steady in the sense that we didn鈥檛 see a dip,鈥� Ms. W褜rgler said during the press conference.

鈥淪o, the base could be less, but we were already in double digits in terms of occupancy. And it has, on average, actually been maintained,鈥� she added.

In March, when the effects of the conflict started to be largely felt, Ms. W褜rgler said the hotel did not see a dramatic drop in occupancy, driven by various partnered businesses in Manila.

Since March, the country has been experiencing series of fuel price hikes, among the highest in Asia, which have added burden on business operating costs and pushed airline fuel expenses higher, resulting in increased ticket prices.

Moving forward, Mr. Bajarias said AppleOne Group鈥檚 portfolio of properties, retail centers, and hotel partnerships strengthens its resilience by ensuring developments remain accessible to a broad base of users.

鈥淲e don鈥檛 want to measure volume per visit, but we want frequent, routine visits. If that means putting in place daily-use categories, we will have to do that so that the property is integrated into the lives of employees and residents within Lapu-Lapu City,鈥� he said. 鈥� Edg Adrian A. Eva

Total condominium take-up reached 7,732 units in the January-to-March period, recovering from a 鈥渟harp slowdown鈥� in the previous quarter, LPC said in its first-quarter residential market report released last week.

Despite the improvement, LPC said the market remains vulnerable to external shocks and structural constraints.

鈥淎 more decisive recovery is unlikely until external risks moderate and rental yields begin to normalize relative to capital values,鈥� it said.

Investor activity remained subdued, with rental yields at 3.8% for primary units and 4.6% for secondary units, levels the firm said are insufficient to offset high acquisition costs.

鈥淪peculative investor interest remained muted due to subdued rental yields as rental rates normalize and capital values of primary units remain elevated,鈥� it said.

The market also faces elevated inventory, with unsold condominium stock equivalent to about 31 months, though this was partly eased by slower project launches and improved absorption.

鈥淭empered project launches and incremental gains in absorption provided temporary relief to inventory pressure,鈥� LPC said.

Demand was more resilient in the mid-market segment, while higher-end buyers continued to adopt a wait-and-see approach.

LPC said global risks, including geopolitical tensions in the Middle East, could drive inflation and interest rates higher and dampen remittance flows from overseas Filipino workers.

鈥淕iven heightened global and geopolitical risks, market participants should maintain a cautious stance 鈥� closely assessing supply-chain impacts, preserving liquidity, and deferring aggressive expansion until conditions stabilize,鈥� said Roy Golez, LPC director for research, consultancy, and valuation.

Residential activity is also gradually shifting to provincial areas supported by infrastructure development, where flexible payment terms and improved accessibility are helping sustain demand and price growth, the firm said. 鈥� Alexandria Grace C. Magno

A total of 158 malls generated savings equivalent to 23 megawatts (MW) of electricity over 19 days, the DoE said in a social media post on Monday.

The agency attributed the savings to adjustments in mall operations aimed at easing pressure on the power system.

Participating operators included Araneta Malls, Megaworld Lifestyle Malls, SM Supermalls, Power Plant Mall (Rockwell), Robinsons Malls, and Ayala Malls, among others.

Some malls have also begun adopting rooftop solar systems and participating in the government鈥檚 Green Energy Option Program, which allows eligible consumers to select their preferred electricity supplier.

Last month, several mall operators in Metro Manila shortened operating hours following the government鈥檚 declaration of a national energy emergency.

Government agencies also reported a 14% reduction in fuel and electricity use, equivalent to about 0.70 MW in energy savings, the DoE said.

The agency attributed these savings to operational efficiency measures, including optimized energy use in offices and facilities, as well as efforts to promote fuel efficiency while maintaining public services.

鈥淏y leading by example, the government advances a more sustainable, responsible, and energy-efficient way of operating, helping ease pressure on the power system and ensuring that resources are used wisely for the benefit of all Filipinos,鈥� the DoE said.

The government also implemented a temporary four-day workweek in some agencies to conserve energy amid rising fuel prices.

鈥淓nergy efficiency is a national priority. Every step we take to reduce unnecessary consumption and strengthen efficiency helps fortify our country against volatility that may begin beyond our shores but is felt by every Filipino household, commuter, worker, and enterprise,鈥� Energy Secretary Sharon S. Garin previously said in a statement. 鈥� Sheldeen Joy Talavera

Areza, a 92-hectare masterplanned estate by Ayala Land, is envisioned as Lipa鈥檚 new city center, integrating walkable urban spaces, green corridors, and commercial districts within an infrastructure-supported environment.

The facility, located in Lipa鈥檚 emerging urban core, is intended to centralize key government services and improve accessibility for residents, according to a statement on Monday.

Mayor Eric B. Africa said the new city hall is expected to serve as a landmark that will strengthen the city鈥檚 identity and support its economic growth.

鈥�Ang New Lipa City Hall ay maging isa sa new landmark sa Lipa. Na magbibigay ng pagkakakilanlan sa ating lungsod. Gusali na magiging bahagi ng turismo at sasalamin sa progresibong lungsod at higit na maghihikayat ng mga imbestors na maghahatid ng oportunidad na trabaho sa mga Lipe帽o (The New Lipa City Hall is expected to become a new landmark in Lipa, helping define the city鈥檚 identity. It will form part of the local tourism landscape and reflect a progressive city, while attracting investors that can generate job opportunities for Lipe帽os),鈥� he said during the inauguration.

The development is expected to help position Areza as Lipa鈥檚 next central business and civic district, integrating government, commercial, and community spaces, Ayala Land Estates said.

Gilbert Ramos, Areza project development head, said the partnership between the local government and Ayala Land aims to support long-term urban growth.

鈥淥ver the long term, we see Areza evolving alongside the city, supporting its growth by providing a strategic, integrated location for key institutions and economic activity,鈥� he said.

The new city hall has a floor area of about 23,000 square meters and will house key administrative offices to streamline public service delivery. It will also feature a performance hall, an annex building, and a 2,160-square-meter plaza.

Shares in Ayala Land slipped by 0.11% or two centavos to close at P18.06 on Monday. 鈥� Juliana Chloe A. Gonzales

The Gokongwei-led mall operator increased its charging stations to 42 from 14 over the past two years, it said in a statement on Monday.

鈥淭hrough these partnerships, Robinsons Malls has grown its EV charging network from 14 to 42 points across its properties in a span of just two years,鈥� the company said.

These stations are located at sites such as Opus, Robinsons Galleria, Robinsons Manila, Robinsons Magnolia, Robinsons Tagaytay, Robinsons Iloilo, Robinsons Pagadian, Robinsons Dumaguete, Robinsons Roxas, and Robinsons Ilocos Norte.

Additional charging facilities are planned for Robinsons La Union, Robinsons Tuguegarao, Robinsons Santiago, Robinsons Antique, Robinsons Iligan, Robinsons Valencia, and Robinsons Butuan.

鈥淏y providing strategic locations for partners such as Meralco, Shell Recharge, ACMobility, and Tesla, Robinsons Malls helps bring charging solutions closer to more communities, expanding access to cleaner transportation and supporting broader green mobility adoption,鈥� the company said.

The expansion forms part of the company鈥檚 broader sustainability efforts.

Shares in RLC declined by 3.80% or 68 centavos to close at P17.20. 鈥� Juliana Chloe A. Gonzales

Office completions across major regional hubs such as Cebu, Clark, Bacolod, and Davao City stalled in the second half of last year as construction delays and supply chain issues pushed project timelines back, Savills Philippines said in its regional outlook report released last week. Iloilo City was the only exception, delivering 24,000 square meters (sq.m.) of new office space for the year.

The slowdown reflects a more cautious stance among developers amid fluctuating interest rates, while temporarily easing vacancy pressures in select markets, according to the report.

Delayed projects are expected to come online from 2026, with Cebu and Davao City accounting for much of the incoming supply, Savills Philippines said.

These include Cebu鈥檚 166,200 sq.m. Grade A office pipeline and 76,900 sq.m. across four Davao developments by 2027, which could push vacancy levels higher, it said.

鈥淲hile the influx of space may cause a temporary uptick in vacancy rates by 2027, it positions these cities as the primary beneficiaries of the ongoing corporate decentralization away from Metro Manila,鈥� Savills Philippines said.

In 2025, regional office markets in the Philippines remained active and resilient, posting positive net take-up in Cebu, Clark, Iloilo, and Davao, while Bacolod continued to record negative absorption, according to the report.

The business process outsourcing (BPO) sector remained the main driver of demand, pushing some submarkets close to full occupancy and supporting a pipeline of new developments expected to sustain medium-term growth, it said.

Performance varied across key cities, with Cebu leading expansion, while Davao recorded the lowest vacancy rate, Savills Philippines said.

Cebu鈥檚 office vacancy rate fell to 11% in 2025 from 16.6% in 2024, driven by strong leasing activity and demand in key areas such as IT Park and fringe locations, according to the report. Much of this demand came from BPOs and multinational firms favoring LEED-certified buildings for efficiency and workplace quality.

鈥淟ooking ahead, office supply in 2026 is projected to reach its highest level since 2023. A significant portion of this pipeline will be concentrated in fringe locations, particularly the North Reclamation Area and Lapu-Lapu City,鈥� the report said.

The additional supply could increase vacancy in newer submarkets but may also shift demand beyond traditional hubs and expand Cebu鈥檚 overall office footprint, it added.

Davao鈥檚 prime office market remains supply-constrained, keeping Grade A buildings fully occupied, with vacancies largely confined to non-PEZA Grade B spaces in mixed-use developments, according to Savills Philippines.

鈥淭he absence of new Grade A completions in 2026, with the next wave of supply expected in 2027, positions existing prime assets to sustain high occupancy levels and potentially command firmer rental rates,鈥� the report read.

鈥淎t the same time, this supply gap creates an opportunity for early consolidation and pre-leasing strategies ahead of upcoming developments, further underscoring Davao鈥檚 medium-term investment potential,鈥� it added.

Clark鈥檚 office market demand shrank by 11,600 sq.m. in late 2025, but strong activity earlier in the year kept total demand positive at 15,100 sq.m., helping lower vacancy to 22.5% from 25.3%, Savills Philippines said.

Iloilo鈥檚 office market recorded about 22,600 sq.m. of transactions in 2025, but net demand rose by only 7,600 sq.m. as most activity came from tenant relocations and upgrades rather than expansion, according to the report.

Bacolod鈥檚 office market also softened in 2025, with tenant footprint reductions and negative net take-up of 9,000 sq.m. due to consolidation, limited expansion, and demand shifting to newer spaces in Bacolod East, widening the performance gap among submarkets, Savills Philippines said.

Entering 2026, rental rates in provincial hubs are forecast to hold steady rather than decline, creating a price floor despite shifting vacancy rates, according to the report.

鈥淭his resilience is underpinned by a sustained 鈥渇light to quality,鈥� where the concentration of demand for Grade A and LEED-certified spaces allows landlords to maintain 鈥� or even modestly escalate 鈥� headline rents,鈥� Savills Philippines said.

Rental rates in regional hubs increased through the fourth quarter of 2025 alongside higher vacancy levels, with growth largely driven by demand for Grade A office spaces, it added.

Davao recorded the highest increase, with rents rising by P11.9 per sq.m. to an average of P503.5. 鈥淭his outperformed established markets like Cebu and Clark in terms of percentage growth, signaling a tightening of grade A supply in the Davao region,鈥� the report stated. 鈥� Alexandria Grace C. Magno

ACX Senior Vice-President and Head of Business Development Rohit Kohli told 大象传媒 that the company aims to open four stores in its first year, with the initial site targeted between the fourth quarter of 2026 and the first quarter of 2027.

鈥淪tore 1 and 2 will be at Cloverleaf and Arca South. For initial general rollout, [we are] targeting the Greater Manila area,鈥� Mr. Kohli said in an e-mail response to questions.

Cloverleaf and Arca South are Ayala Land, Inc. developments.

In September last year, Ayala Corp. signed a deal with Thai retailer CP Axtra to relaunch Makro grocery stores in the Philippines through its wholly owned subsidiary, ACX Holdings.

Makro, a Dutch international brand, first entered the Philippine market in 1996 through a joint venture among SHV Holdings N.V., Ayala Corp., and Sy-led SM Investments Corp.

Ayala later sold its 28% stake to the SM Group, which rebranded Makro outlets in 2009. SHV also divested its Asian Makro operations, which are now operated by Thailand鈥檚 Charoen Pokphand Group through CP Axtra.

ACX Holdings and CP Axtra subsidiary Makro ROH Co., Ltd. also formed a joint venture, M&Co. Corp., which will operate the Makro stores.

Ayala Land Head of Leasing and Hospitality and Ayala Malls President Mariana Zobel de Ayala earlier told 大象传媒 that a Makro store will open at Ayala Malls Arca South.

Mr. Kohli said ACX has an active partnership with Anko and is working with partners from Makro and Spinneys on new ventures.

鈥淎CX remains open and is actively searching for other potential concepts that we believe would uplift retail standards in the Philippines,鈥� he added.

Anko, established in 2017, is part of Kmart Group, which includes Kmart Australia, Target Australia, and Anko Global. These are owned by Wesfarmers Ltd.

Anko debuted in the Philippines in November 2024 with a store at Glorietta 2 in Makati City under a joint venture with Ayala Corp.鈥檚 mall unit, Ayala Malls.

At the local bourse on Monday, Ayala Corp. shares fell by 2.25% to P522 apiece. 鈥� Alexandria Grace C. Magno

鈥淲ith the new road in place, Areza is now more seamlessly connected to major transport networks, nearby communities, and emerging business districts 鈥� strengthening its appeal for commercial, retail, and mixed-use developments,鈥� the company said in a statement last week.

The 92-hectare Areza development in Batangas features linear parks, green spaces, and commercial areas. It is located near institutions such as De La Salle Lipa and Mt. Malarayat Country Club.

The estate is accessible by car, public transport, and ride-hailing services.

The 4.35-kilometer diversion road links Katigbak Road to Leviste Highway and the Southern Tagalog Arterial Road (STAR) Tollway. The road is expected to reduce travel time within Batangas and to Metro Manila, while improving access to public infrastructure, including the planned Lipa City Hall site.

Improved connectivity is expected to support increased activity and investment in surrounding areas.

鈥淎s Lipa continues to evolve beyond a manufacturing and logistics base into a more diversified urban center, infrastructure projects such as the Lipa City鈥揗ataas na Kahoy Diversion Road are expected to play a critical role in shaping land use, connectivity, and long-term growth patterns across the city and neighboring municipalities,鈥� Ayala Land Estates said.

Lipa City鈥檚 population has grown by more than 70% over the past two decades, alongside sustained expansion in manufacturing and services, reflecting broader growth trends in the Calabarzon region (Cavite, Laguna, Batangas, Rizal, and Quezon), the country鈥檚 largest industrial region, according to the company. 鈥� Alexandria Grace C. Magno

鈥淪teady rates until the end of 2026, then the next raise will be in 2027,鈥� Gallio Events Hall Senior Operations Manager Sheila Bernardo told reporters last week.

鈥淲e don鈥檛 charge additional for this and that just because there鈥檚 inflation. Whatever prices we have throughout the year are applicable for the entire year, regardless if there鈥檚 war in Iran or America or other factors,鈥� she added.

The company said price adjustments are typically implemented every two years.

Gallio Events Hall said it is also in talks about a possible expansion after reporting strong business growth over the past two and a half years.

鈥淸The performance] has been great. We grew exponentially over the years. If you would consider, it鈥檚 just past 2.5 years but we are able to host other types of events, not just the typical weddings to a typical corporate event,鈥� Ms. Bernardo said.

鈥淵es, there are [expansion plans], but we might take it slow. But we are in talks with the owners, and they are very happy with the performance we鈥檝e made over the past two and a half years,鈥� she added.

Gallio Events Hall is an event venue that incorporates Filipino architectural and design elements.

Located in Aseana City, the venue offers space for corporate events, exhibitions, and social gatherings.

The venue held its launch event last Friday, featuring a modern-contemporary Filipino-themed program.

The company said demand for modern and flexible venues is rising, as the Philippines鈥� MICE (meetings, incentives, conferences, and exhibitions) sector is projected to grow by about 8.5% annually through 2028.

It said Gallio Events Hall aims to cater to this demand. 鈥� Alexandria Grace C. Magno

Mintong Construction, Inc., which has built industrial facilities for Steelwell, Fong Shann, and Tang鈥檚 Realty, will develop the project.

鈥淢axort鈥檚 expansion through LIMA Estate demonstrates the strength of the Philippine market for global manufacturers. Each new investment brings valuable technology transfer and reinforces the Philippines鈥� capacity for sustainable, export-driven growth,鈥� Aboitiz Economic Estates Vice-President for Commercial Strategy Monica Lorenzana Trajano said in a statement on Monday.

Maxort expects the project to generate about 150 construction jobs during the initial phase, with full operations targeted by the end of 2026.

The P400-million investment will add to LIMA Estate鈥檚 roster of international manufacturers and is expected to bring in foreign direct investment. Once operational, the facility is projected to create about 200 jobs, supporting local employment and regional economic activity.

鈥淲e chose LIMA Estate because the Philippines offers a strong foundation for growth. Its skilled workforce, reliable infrastructure, and supportive incentives allow us to scale responsibly while creating meaningful jobs for the local community,鈥� Maxort Philippines, Inc. President Jinjun Zhao said.

LIMA Estate is a Philippine Economic Zone Authority-registered industrial hub, with 197 global manufacturers and service providers employing more than 75,000 workers across its industrial zones, central business district, and retail areas. It offers utilities, logistics connectivity, and infrastructure for export-oriented enterprises.

The estate plans to expand to 1,500 ha in Batangas over the next five to seven years, aiming to attract more foreign investment and support the province鈥檚 position as an industrial hub in Southeast Asia.

Aboitiz Economic Estates operates a 2,000-ha network of industrial townships across Southern Luzon and Central Visayas. Its developments host 260 locators and support about 100,000 jobs.

The company鈥檚 portfolio includes the 1,100-ha LIMA Estate in Batangas, the 63-ha Mactan Economic Zone 2 in Cebu, the 540-ha West Cebu Estate in Cebu, and the 384-ha TARI Estate in Tarlac. 鈥� Alexandria Grace C. Magno

The brokerage, which started in 2020 during the pandemic, has since grown into a multi-million-peso firm, it said in a statement on Monday.

鈥淚n real estate, it鈥檚 never just about transactions 鈥� it鈥檚 about people, trust, and the future they are building,鈥� Calidad Realty Founder and President Zaldy Aquino Herrera, Jr. said.

The company said it started as a small team and has since expanded its operations.

鈥淲e started Calidad with the goal of creating opportunities during uncertain times. Today, we celebrate not just growth, but the community we鈥檝e built along the way,鈥� Mr. Herrera said.

Over the past five years, the company said it has received several sales awards, conducted roadshows in North America and the Middle East, and entered into partnerships with developers.

Its property portfolio now totals billions of pesos, with a network of accredited projects across the country, it said.

The company also outlined expansion plans, including the launch of the Elite Group, a team of property specialists.

It also cited the Calidad Foundation, its social development arm.

鈥淎s Calidad Realty looks ahead, the company remains anchored in its founding philosophy: delivering quality service and matching clients with properties they truly deserve,鈥� it said. 鈥� Alexandria Grace C. Magno

Over the past few years, we have seen major developers aggressively landbanking and developing masterplanned communities in Central Luzon, especially in Bulacan, Tarlac, and Pampanga.听 We expect proactive landbanking in other parts of the region as developers are gradually positioning and firming up their positions in a constantly evolving property market like Central Luzon.

INFRASTRUCTURE AS A REGIONAL GROWTH CATALYST
The backbone of Central Luzon鈥檚 economic surge lies in its massive infrastructure projects. The Central Luzon Link Expressway Phase 1, completed in 2021, has already enhanced connectivity within the region. Looking ahead, transformative projects such as the New Manila International Airport, expected beyond 2028 with a capacity of 100 million passengers annually, and the Manila-Clark Railway, slated for completion in 2028, promise to revolutionize mobility and trade within the region. Other projects, including the North Luzon Expressway鈥揝outh Luzon Expressway (NLEX-SLEX) Connector (2026) and Metro Rail Transit (MRT) Line 7 (2027), will further integrate Central Luzon with Metro Manila, reducing travel times and boosting commercial activities.

Air transport is also being strengthened, with the expansion of Clark International Airport (completed in 2021) and the Bulacan Airport project, an ambitious airport project that will likely be at par with major airports in Southeast Asia such as Changi in Singapore. These developments will position Central Luzon as a future logistics hub, capable of supporting both domestic and international trade.

CONSTRUCTION AND SERVICES DRIVING GROWTH
The construction sector has been particularly robust, registering 13.7% growth in 2024, nearly doubling its 7.3% expansion in 2023. This surge reflects both public infrastructure spending and private real estate development in central Luzon. With national players positioning to capture office, residential, leisure, retail, and industrial demand in the region, we expect private construction to rise steadily.

Services, including information and communication, also contributed positively, with a 5% growth rate in 2024. The sub-segment is partly propelled by the attractiveness of the region鈥檚 outsourcing segment. Big outsourcing firms such as Majorel, Cloudstaff, Concentrix, Alorica, Asurion, Infosys, TaskUs, iQor, and Sutherland are already in the region.

Together, construction and services are reshaping the region鈥檚 economic landscape, creating jobs, and attracting investments which result in a more inclusive economic expansion.

REAL ESTATE APPRECIATION IN CENTRAL LUZON AND听 ITS CENTRAL ROLE IN NATIONAL PROGRESS
Central Luzon鈥檚 economic momentum is mirrored in its real estate market. Lot-only developments have experienced healthy price increases, with projects launched in recent years showing strong compounded annual growth rates (CAGR).

Central Luzon鈥檚 growth story is not just regional 鈥� it is national. Its proximity to Metro Manila, coupled with massive infrastructure investments, positions it as a key driver of decentralization. By easing congestion in the capital and offering alternative hubs for business and industry, Central Luzon supports the government鈥檚 vision of balanced regional development.

AT THE CENTER OF PHILIPPINE PROPERTY鈥橲 TRANSFORMATION
Central Luzon鈥檚 trajectory illustrates how infrastructure, construction, and services can synergize to propel regional growth and eventually contribute to national progress. With its expanding share to the national GDP, booming real estate market, and transformative public projects on the horizon, the region is poised to become a cornerstone of Philippine economic progress.

As the country continues to pursue inclusive development, Central Luzon stands out as a model of how strategic property investments can unlock long-term prosperity.

Moving forward, Central Luzon鈥檚 role to national progress will be pivotal as its growth angle is national and not just regional.

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com