PH Real Estate Faces Unique Challenges

The Philippine real estate market, according to global real estate firm Cushman & Wakefield (CWK), is currently experiencing unique challenges, unlike any previous cycles.

- Marianne Go

In its first 2025 market briefing, CWK noted that the current environment "is shaped by unprecedented factors such as the global pandemic, geopolitical tensions and rapid technological advancements."

Despite these challenges, CWK assured that "established CBDs (central business districts) remain resilient, and the diversification into multiple sub-markets offers new opportunities. Looking ahead, nouveau sectors such as technology, health care and logistics are expected to drive demand, supporting a gradual market recovery."

The global real estate services firm pointed out that the emergence of multiple sub-markets beyond the traditional CBDs of Makati, Bonifacio Global City (BGC), and Ortigas has provided developers, investors, and occupiers with opportunities to diversify their portfolios.

This diversification helps mitigate risks by spreading investments across various locations and property types, reducing dependency on any single market.

Due to the combined effects of the pandemic and the extended economic downturn, CWK said, the availability of top-tier real estate assets in established CBDs has made the flight-to-quality trend more pronounced.

The ability of established CBDs, as well as large, major cities outside Metro Manila, to preserve real estate values has attracted investors and discerning tenants who seek to minimize market risks.

CWK noted that despite the challenges, such as the departure of Philippine offshore gaming operators (POGOs), "established CBDs have demonstrated remarkable resilience."

These areas continue to attract businesses and maintain high occupancy rates due to their developed infrastructure, accessibility, and established business ecosystems.

While certain non-CBD markets face pressures, such as reduced demand in specific sub-sectors, there remains some bright spots."