Manila, the capital city of the Philippines, is currently experiencing a property boom the likes of which has not been in 20 years. This is believed to be due to the changing perception of the area, which until quite recently had not been a place where investors were likely to be targeting their funds.
A prime example of the positive developments taking place in the region is Bonifacio Global City. This development, including both commercial and residential properties, is located on land that was once part of the country’s largest army base. It was sold off by the government in the 1990s but construction on the project didn’t start until Ayala Land Inc. bought the site six years ago.
Once the company started the project, it was fully committed to it, and now work is continuing on a 24-hour basis. The City will be home to Nickel Asia Corp and Aboitiz Equity Ventures Inc. in one of several towers currently under construction.
The Bonifacio project is located near Makati, which is the main business district in the city. Tenants pay 800 peso per square meter (£12.18) for the new office space, and this rate is catching up to those charged for space in older, established areas.
Rents charged in Makati have increased by 30 per cent in the last three years but are still below the peak levels of 1200 pesos per square meter (£18.12) landlords were charging before the global financial crisis of 2008.
At these levels, rents in Manila are much less expensive than paying for office space in Singapore, Shanghai or Hong Kong. Bonifacio is enticing companies to locate in the area, and its luxury hotel chains and spacious parks are a big draw. Italian super car makers have taken notice and Lamborghini and Ferrari have opened showrooms in the area.
Another indication that the Manila market is booming is that office space in new buildings is being easily pre-let. At the NAC Tower, all but six floors have been let, but even these have interested potential tenants.
The Philippines has one of the region’s fastest growth rates. Its GDP grew by an impressive rate of 6.1 per cent in the first half of 2012.
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