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.

THE business process outsourcing industry (BPO) will remain a key driver of Philippine economic growth despite US protectionism, the head of a real estate consultancy said, with projected workforce expansions expected to boost demand for office space. 

Speaking at Manila Times economic forum on Thursday, Lobien Realty CEO Sheila Lobien projected that 160,000 new employees would join the BPO workforce this year, requiring companies to add an estimate 480,000 square meters of office space.

[Amy Remo - Writing Editor, Property Section at Philippine Daily Inquirer] Cautious recovery, innovation, and resilience are expected to define the Philippine real estate landscape in 2025.

Developers are seen to continue recalibrating to meet shifting demands with suburban townships and sustainable horizontal developments, while unsold Metro Manila condominium inventories will likely temper new launches. The industrial and logistics sectors, buoyed by the e-commerce boom and decentralization, is seen to maintain their resilience.