THE Philippines is expected to end 2025 on a cautious upswing, supported by holiday spending, remittances and year-end bonuses, although analysts warned that a sustained recovery will hinge on stronger state spending and improved investor sentiment, property consultancy Colliers Philippines said in its latest market report.
The outlook comes after the economy slowed sharply in the third quarter, expanding four percent its weakest pace since 2011. Soft household consumption and lower infrastructure outlays pulled year-to-date growth to five percent, below the government’s 5.5 percent to 6.5 percent target and contributing to recent credit rating downgrades.
Despite the setback, the Philippines remains one of Southeast Asia’s faster-growing economies, trailing only Vietnam’s 7.7 percent expansion.
Colliers said the property market showed mixed signs of resilience.
Metro Manila office demand surpassed full-year projections, supported by pre-leasing in new buildings and stronger activity in provincial hubs such as Cebu. Vacancy rates eased, but regulatory risks, including proposed anti-outsourcing rules, continue to weigh on sentiment.
In the first nine months of 2025, office transactions outside Metro Manila reached 210,000 square meters, up from 184,000 square meters a year ago. Cebu accounted for 52 percent of the deals during the period.
Among the notable transactions in Cebu include spaces taken up by Asurion, Concentrix, Virtual Staffing Solutions, Wipro, Optum and EXL Service. These firms took up spaces in Faustina Center, Filinvest Cyberzone Cebu Towers 2-4, Robinsons Cybergate Cebu, and Central Bloc Corporate Center Tower 1.
The residential sector recorded a rebound in pre-selling, with 90 percent of net take-up coming from affordable to mid-income units priced between P2.5 million and P12 million. Developers are pushing ready-for-occupancy promotions and targeting overseas Filipinos and local workers to sustain demand.
In retail, mall operators maintained healthy occupancy despite slower consumer spending, backed by reinvestment, store upgrades and omnichannel expansion. Developers have allocated fresh capital for refurbishments, helping support absorption and reduce vacancies.
Colliers said property opportunities will persist but remain muted in the near term, adding that developers and occupiers may need to pursue innovative and asset-light strategies as they await clearer policy direction and fiscal pump-priming to drive growth beyond 2025. (KOC)