Rental rates in all Metro Manila central business districts will grow by 2.3 percent quarter-on-quarter over the next two to three years, according to real estate services firm CBRE Philippines.
“We have seen an uptick in the Makati and Bonifacio Global City [BGC] markets over the past 20 years. That is both a function [of the market], and it also gives clients a strategic directions to make free commitments,” Joey Radovan, CBRE Philippines vice chairman told reporters on Tuesday.
“So now we service two segments of the market, one is clients that need ready space now; and clients that are making strategic decisions or free commits to office space where their needs are being forecasted from now up to five years,” he added.
Makati City, being the country’s premier business district, and BGC, the popular choice for office occupiers and investors will likely to continue to experience increases in both capital values and rents.
Compared to the rest of the Asia Pacific region, Philippine rental rates are still very competitive, CBRE said.
“And with the recent peso devaluation to the US dollar, we see that rentals will appreciate in the next two to three years,” Radovan added.
Meanwhile, Rick Santos, chairman and founder of CBRE unveiled the new long-term franchise partnership between his company and Knight Frank LLP, the leading private global property consultancy.
Starting January 1, 2017, Santos’ company will be under its new brand Santos Knight Frank.