Transactions in the office space market recovered in 2021, and property market experts projected that the trend will continue this year.
Professional services and investment management firm Colliers reported that office transactions last year increased by 18 percent to 422,000 square meters from 357,000 square meters in 2020.
The bulk of the transactions was made in the last quarter of 2021 when mobility increased as the government eased alert levels.
On the other hand, the third quarter of last year recorded the least transaction volume with around 69,000 sqm amid the Delta surge.
Colliers Philippines director for Office Services Dom Frederick Andaya said the office market is expected to be better this year.
“The vaccination is working. We have learned and continue how to live with this virus. And also, while health concerns brought about by Covid-19 (coronavirus disease 2019) have already been addressed, we are more confident. That means there’s more focus now in reviving the economy,” Andaya said.
He added that with the economic reopening last year, more office buildings were completed in Metro Manila that augment the inventory of office space.
A total of 634,000 sqm of office space were completed in the previous year, bringing the Metro Manila office stock to 12.94 million sqm at end-2021.
Andaya said the business process outsourcing sector remains the biggest demand driver in the local property market, while the possible return of Philippine offshore gaming operators (POGO) will also take up vacant spaces. (PNA)
