GLOBAL real property services company Colliers International Philippines projected that Bacolod City will be among the growing hubs for flexible workspaces and most attractive locations for resort-oriented hotels in the country this year.
Colliers, in its 2018 Top 10 Predictions released to the local media Wednesday, January 3, said flexible workspace is seen to accelerate this year. In 2017, about 20,000 square meters were taken up by operators.
Along with Bacolod City, the company listed Iloilo and Davao as growing hubs for flexible workspace development outside Metro Manila.
Colliers said the challenge is for developers to adapt to the demands of the market to remain competitive in this growing office segment especially as international co-working brands enter the market.
“Partnerships between stakeholders are inevitable,” the company said, adding that it expects more synergies among stakeholders, including operators, developers, industry experts, even schools and food and beverage establishments.
Another segment in which Bacolod is seen to excel this year is the development of more resort-oriented hotels.
Colliers noted that the development three to four-star hotels among resort destinations in the country will be more visible over the next two to three years.
“Among the most attractive locations for these developments are Bacolod, Cebu, Iloilo, Palawan, Davao, and Bohol,” it said.
The prediction also stated that new airport infrastructure is essential in further expanding both local and foreign tourism arrivals.
While the Mactan-Cebu International Airport expansion project is on track and seven firms have submitted bid documents for the Clark International Airport expansion, Colliers said other crucial projects like the Ninoy Aquino International Airport (NAIA) modernization are still on exploratory phase.
Colliers said that the expansion of international airports in major destinations like Bacolod, Bohol, Iloilo, and Davao will allow foreign tourists to bypass Manila.
“We also encourage investors to build budget hotels to cater to a continuously growing domestic market that is primarily driven by millennial travelers,” it added.
Other significant projections of Colliers for this year include infrastructure-led gross domestic product to buoy property, Metro Manila condominium leasing to remain challenging, and diversified office tenancy mix to be led by non-business process outsourcing sector.
It also predicted that the growing popularity of e-commerce will drive warehousing and logistics demand, and industrial park developers to head north of Luzon.
Also, there will be more township developments outside Metro Manila this year, continued growth of e-commerce and experiential retail, and leisure and industrial to drive Cebu property expansion, it added.