The land values in the central business district of Makati in 2019 averaged from P400,000 to P1 million and average office rental rates went as high as P1,600 per square meter (sqm), said Lobien Realty during its real estate market update in Bonifacio Global City on Friday.
Similarly, land values in Taguig also averaged from P400,000 to P1 million last year, while average rental rates in the city were at P1,500 per sqm.
The real estate consultancy firm said the value can be attributed to the location of the cities.
Makati and Taguig are closely followed by the Bay City, with land values averaging from P300,000 to P500,000 and office rental rates at P1,210 per sqm. This spike can be attributed to the increase in Philippine offshore gaming operator (POGO) companies in the area.
Alabang in Muntinlupa City is also close behind with land values averaging from P250,000 to P400,000 and office rental rates at P750 per sqm.
Meanwhile, Lobien remains upbeat about the 2020 real estate market in the country.
It expects the office realty market to continually improve in the coming years on the back of the increasing need for office spaces of POGOs and business process outsourcing (BPO) companies.
According to Lobien’s data, POGOs made up 36 percent or 396,00 sqm of the total office demand in Metro Manila and BPOs took up 30 percent or 330,000 sqm in 2019.
Co-working spaces are also seen to drive the office space demand forward as its popularity among startup companies, freelancers, remote teams and entrepreneurs and digital nomads increases.