COMMERCIAL and office space specialist and full-service property strategy firm Lobien Realty Group Inc. recently inked a memorandum of agreement (MOA) with manufacturing, distributing and marketing global giant Samsung Electronics Philippines Corp. in order to support businesses that wished to scale their growth and digitize their operations in an efficient manner.

The business-process outsourcing (BPO) and co-working spaces remain the main drivers  of the office segment in the country’s property sector.

In their first half 2025 outlook, Lobien Realty Group chief executive officer Sheila Lobien said the high demand for such spaces ensures business continuity to several companies operating in the Philippines.

Cebu Island—composed of Cebu province and the cities of Cebu, Lapu-Lapu and Mandaue—solidified its claim as one of the major economic powerhouses of the Philippines when it first breached P1 trillion in economic value or gross domestic product (GDP) in 2023.

This trajectory was maintained in 2024 when Central Visayas registered a 7.3 percent GDP growth, the fastest growing regional economy in the Philippines.

While the office market is gradually recovering, high vacancy rates remain inside and outside Metro Manila, according to Lobien Realty Group

In its recent annual mid-year briefing, Lobien Realty Group (LRG) discussed the market outlook and updated data in the real estate industry on July 9, 2025, at Spaces in World Plaza, BCG.

NCR and provincial office market vacancy high, warehousing sector growing

Vacancy rates remain high in the office sectors in both the National Capital Region and the provinces. The residential condominium market in Metro Manila is currently “a buyer’s market”. Meanwhile, warehousing industry in the country is robust and continues to grow. These were the highlights of the 2025 mid-year report on the real-estate industry presented by leading real estate property provider Lobien Realty Group, Inc (LRG). on July 9.

The Philippine real estate industry is well-positioned to gather more momentum for further recovery in 2025.

The country’s gross domestic product (GDP) in the first quarter of the year stood at 5.4 percent, while inflation cooled to 2.2 percent, which is in the lower end of Bangko Sentral ng Pilipinas’ (BSP) target inflation band of 2 to 4 percent.

And as of June 2025, the policy interest rate was reduced by 50 basis points, to 5.25 percent from 5.75 percent at the start of the year. Another reduction is expected this year due to low inflation and further economic growth.

UNOCCUPIED office spaces in Metro Manila have risen fivefold compared to pre-pandemic days, the head of the Lobien Realty Group (LRG) said.

 “[The] vacancy rate right now is 20 percent. Pre-pandemic, [it was] 4 percent, and at that time, we had POGOs (Philippine offshore gaming operators), [and there was no work from home yet] in the BPO (business process outsourcing) industry. That’s why demand [then] was high,” LRG CEO Sheila Lobien said on Tuesday.

CLARK FREEPORT, Pampanga — Amid global and domestic uncertainties, the Philippine economy remains set for continued growth given favorable demographics such as its young, English-speaking population, the head of a real estate consultancy said.

Speaking at a Manila Times forum at the Clark Marriott Hotel, Lobien Realty Group CEO Sheila Lobien said that young entrepreneurs would help sustain economic growth.

“Although we see many women in real estate—mostly in sales, marketing, and consultancy—only a few reach the highest levels of management. While leadership traits like merit, performance, logic, and strategic thinking are common to both men and women, I believe women often bring a more inclusive and caring leadership style. Women leaders tend to be more attuned to their team’s well-being. During the pandemic, for instance, many women leaders didn’t hesitate to check in on their teams with personal messages—something that may feel awkward for some male counterparts.

There is a paradox in the National Capital Region’s condominium market at the moment.

While it is true that there is an oversupply of condominium inventory, we are not seeing developer-initiated significant price reductions to push these inventories out of the market.