COLLIERS Philippines’ latest Metro Manila survey underscores two trends. First, return-to-office (RTO) in commercial real estate is still strong and preferred, but market confidence remains fragile. Meanwhile, in the residential market, condominiums in key business hubs remain compelling, while lot-only investments outside Metro Manila continue to gain traction — highlighting a geographic diversification play.
According to the survey, half of the respondents (50 percent) are now fully office-based, currently working in a traditional office setup. These figures are slightly lower than the 57 percent recorded from the company’s Q2 2025 survey. Colliers Philippines holds that having a well-designed physical office space will be key in encouraging workers to report to the office. This is also supported by its earlier survey results, where the majority of the respondents said that they are more productive under a traditional office setup.
Two-thirds of occupiers (67 percent) plan to maintain their status quo footprints, neither rightsizing nor expanding their office footprint, signaling a wait-and-see stance amid geopolitical volatility.
Meanwhile, hybrid adoption continues to rise — reinforcing the enduring value of a well-designed, productivity-driven workplace. About 44 percent are still implementing hybrid work arrangements, up from 40 percent in its previous survey.
The company holds that encouraging more employees to RTO should be beneficial for the property market in general. This is likely to have direct or tangential benefits to other segments, such as retail and residential. With vacancies declining in key hubs, such as Makati CBD, Fort Bonifacio, and Ortigas Center, Colliers Philippines believes it is high time for developers to bolster marketing efforts for their sustainable, high-quality office towers along the peripheries of key CBDs.
Given the continued uncertainty stemming from the Middle East conflict, the company encourages both office occupiers and landlords to take a more proactive and forward-looking approach rather than adopt a wait-and-see stance. It holds that refurbishing older office stock will likely be crucial for landlords to remain competitive in the market. Meanwhile, it encourages occupiers to implement long-term office space planning to better manage risk amid an unpredictable geopolitical and economic environment.
Effective strategies
Similar to the office market, the residential sector is also challenged by the impact of the Middle East conflict. The rising inflation and potential interest rate hikes may likely delay the purchase of big-ticket items such as property to prioritize essential spending. Recalibration is a must for developers to remain relevant. Property firms need to be quick in offering solutions to their investors and other stakeholders, wary of the ongoing geopolitical crisis.
According to the survey, condominium units remain attractive options for residential investors (33 percent). Meanwhile, horizontal projects — lot-only (33 percent) and house-and-lot (26 percent) — outside Metro Manila continue to gain traction among buyers and end-users.
Colliers Philippines maintains that developers should continue highlighting their residential projects’ attractive location, unique and premium amenities, and capital appreciation potential to entice potential investors. It recommends that developers continue innovating their RFO promos, especially with the sizable unsold inventory in the market. As of Q1 2026, remaining condominium inventory in Metro Manila stood at 78,600 units, and 27,900 of which are ready-for-occupancy (RFO).
Rent-to-own schemes that provide free parking space are still the most appealing RFO promos among our respondents, similar to the results of the previous survey (42 percent). These are followed by RFOs that provide a 60 percent discount on the condominium Total Contract Price (TCP) for spot cash payments (25 percent).
Colliers Philippines says that more attractive and innovative promos should help prop up demand, particularly for mid-income condominium projects (P3.6 million to P12 million a unit). Promos such as big discounts, lengthened payment terms, and rent-to-own schemes should be highlighted, especially for a client base still wary of elevated mortgage rates
