Property consultancy Colliers Philippines said emerging business districts such as the Makati City fringe and Quezon City are becoming top alternatives for office expansion, while Pasig City is gaining traction as a preferred location for condominium investments.

In Colliers’ Manila Q4 2025 Survey Flash published on Monday, March 23, it noted that shifting consumer behavior, hybrid work arrangements, and rising digital adoption are reshaping demand across Metro Manila’s real estate segments, pushing occupiers and investors to prioritize value and accessibility.

Outside traditional central business districts (CBDs), about 32 percent of respondents identified the Makati fringe as their preferred location for office expansion or relocation, followed by Quezon City at 26 percent. The Makati fringe refers to areas on the outskirts of the Makati CBD, where office developments offer more competitive lease rates while remaining accessible to key transport links and nearby residential communities.

Colliers said these fringe locations are likely to sustain their appeal due to lower lease rates and relatively high vacancy levels, giving tenants more flexibility to negotiate favorable terms.

Meanwhile, Pasig emerged as an attractive option for condominium investments, particularly for ready-for-occupancy (RFO) units, as developers roll out aggressive promotions such as discounts, extended payment terms, and rent-to-own schemes.

The consultancy noted that Metro Manila remains a buyers’ market, with unsold RFO inventory reaching about 29,400 units as of end-2025. This has prompted developers to introduce more flexible financing options, especially for mid-income buyers.

Beyond property investment, the report highlighted evolving workplace preferences, with nearly half of respondents identifying malls as viable locations for flexible workspaces, followed by cafes, condominiums, and hotels. Colliers said developers should explore integrating co-working spaces into transit-oriented retail developments to maximize foot traffic.

In the retail and logistics segment, the continued rise of e-commerce is driving demand for modern warehouses and cold storage facilities. Colliers cited growing interest from logistics and online retail firms, supported by projections that the Philippines’ e-commerce sector will expand by about 15 percent annually from 2026 to 2030.

The survey also showed that nearly two-thirds of respondents are willing to pay extra for same-day delivery services, underscoring the need for more efficient logistics infrastructure.

On the tourism front, domestic travel remains a key driver, with Palawan and Boracay topping preferred destinations. However, for a ₱30,000 travel budget, Taipei emerged as the most popular international destination, followed by Bangkok, Hong Kong, and Bali.

Colliers said these trends highlight the need for developers and operators to adopt more flexible, omnichannel strategies across office, residential, retail, and hospitality segments to remain competitive in a rapidly evolving market.