Manila, Philippines
 

Manila and its Commercial Real Estate Market are unique in many respects. Did You Know...

•   Manila is the capital of the Philippines and one of the municipalities of Metropolitan Manila, which consist of 14 cities and 3 municipalities. Manila, the nation's second most populated city after Quezon City, has a population of about 1.5 million people and a metropolitan population of over 11 million inhabitants.

•   The metropolitan area contributes about 32 percent to the country's GDP, and is also the political, economic, social, and cultural center of the Philippines. It also serves as the Philippines' principal trading port. It has a $37.4 billion export-oriented economy with international trading partners that include USA, China, Japan, Singapore, and Germany. Some of Manila's major industries include food products, petrochemicals, electronics, pharmaceuticals, garments, textile and beverages. 

•   Manila is the seat of the national government and home to several key government offices such as the presidential house, the Supreme Court, the Departments of Finance, Health, Justice, Labor, and Tourism.

•   Manila's higher education universities and the extensive used of English in education and business are one of the reasons foreign businesses and students are attracted to the city.

•   It is estimated that 97% of the Philippines's GDP is controlled by 15% of the population, of which the majority live in Metro Manila.

•   The economy of Manila and the Philippines is at its best in the past ten years. Last year the country had a GDP growth of 5.4%, and experts predict a GDP growth between 6% and 6.5% this year. The average inflation rate last year was 6.2%, but 1Q07 saw an average inflation of 2.9%, and analysts forecast an inflation rate between 2% and 4% for the rest of the year. 

•   The commercial real estate market in Manila continues to be driven by the business process outsourcing sector (BPO) and the call center sector. 

•   Limited supply of stock prevails in some business districts, which has led to further rental increases. Many companies are moving from business districts such as Makati for alternative CBDs such as Eastwood and Alabang to get lower rental prices.

•   With the overall economy looking positive, the limited supply, and the high demand of spaces, rental rates for the office and retail market are expected to increase over the next 12 months.