Where are property companies expanding next?
Stepping into 2024, resilience in the Philippine economy is seen to shape up the real estate market. Due to strong economic growth, sustained property demand, and increased investments, growth in property is being fueled by the realization that real estate is on the right track.
Professional services and investment management company Colliers International said in a recent report that further recovery will be seen in the property space this year. For instance, for office spaces, Colliers data revealed that occupancy rates will increase to 300,000 square meters in 2024, which is expected to be driven by businesses in information technology, legal, construction, engineering, flexible workspaces, and government agencies. Residential developments, meanwhile, are expected to increase, with opportunities opening for resort-themed projects located outside the metro.
While such outlook is yet to unfold, the following developers are reflecting the continuing rebound of the industry towards growth as they share how they will further expand this year.
Aboitiz InfraCapital Economic Estates
In pursuit of empowering and uplifting businesses and communities, Aboitiz InfraCapital Economic Estates is rising as the next big lifestyle destination.
Aboitiz’s LIMA Estate is expanding its 30-hectare business hub located at the south of Metro Manila to another 40 hectares, drawing young professionals and families looking for a break from the busy city life. It includes the largest outdoor mall, hotels, features fun attractions, cultural and sports events, transport terminals, and industrial hubs.
Office spaces are also under way. For instance, LIMA Tower One, Aboitiz’s mixed-use building, was launched, which features 11 floors of office space, catering to companies, including IT, BPO, and other business services. This office space is set to open in the second quarter of 2024.
“In response to the shift towards flexible work arrangements, One provides a practical and contemporary workspace solution. With well-designed offices and convenient ground-floor retail areas, the tower is an attractive option for businesses looking to establish a presence outside Metro Manila. This initiative reflects LIMA’s commitment to creating versatile workspaces that cater to the diverse needs of businesses, promoting an environment conducive to growth, innovation, and collaboration,” Aboitiz shared on their company website.
With the goal of transforming living experiences, LIMA Estate launched The Pods at LIMA, a dormitory complex designed to offers residents a comfortable and community-driven living space. It includes innovative housing solutions and amenities that enhance the quality of lifestyle of residents.
Ayala Land
Ayala Land, Inc. (ALI), meanwhile, is aiming to expand its business by 2028. In a recent briefing, ALI Chief Finance Officer Augusto D. Bengzon said the developer is expecting a busier year ahead, with more launches and developments taking place this year.
2023 was a thriving year for Ayala Land. Company data saw a 32% increase in its net income, reaching P24.5 billion, driven by high property demand and consumer activity. The company’s revenue also went up by 18% (P148.9 billion), property revenues by 14% (P92.3 billion), and residential reservation sales by 9% (P113.9 billion). Overall, Ayala Land launched 25 projects, which were valued at P75.9 billion.
Picking up from these developments, Ayala Land will continue to develop communities that intends to enhance the lives of Filipinos.
“ALI was well-positioned to take advantage of opportunities from an improving market in 2023, enabling us to meet our objectives for the year,” ALI President and Chief Executive Officer Anna Ma. Margarita Bautista-Dy said.
“With our focus on quality, we look forward to bringing more high-value development products to market and embarking on the reinvention of our malls, hotels, and resorts for our customers to enjoy,” she added.
In line with sustainability, developers are also taking a few steps to strengthen the agenda this year. Ayala Land and its REIT subsidiary, AREIT, Inc., (AREIT) have transitioned 88% of their office portfolio to renewable energy, which supports their ESG targets.
This year, Ayala Land’s AREIT and its buildings was awarded with EDGE Zero Carbon Certification, which positions the company as the leading EDGE Zero Carbon Certified portfolio in the Philippines.
Robinsons Land
Robinsons Land Corp. (RLC) and its residential division, RLC Residences, has been dedicated to enhancing the lives of Filipino by providing vibrant and enjoyable working and living spaces that elevate their lifestyles.
Throughout the years, RLC Residences has successfully provided homeowners with top quality condominiums, and it will continue this year. Testifying to this is SYNC, a condominium located in Pasig City. With four towers and 21 floors, SYNC is efficiently designed with smart home features, productivity upgrades, and exclusive amenities for residents to enjoy. The condominium’s first tower is expected to finish within this year.
Another development is the Sierra Valey Gardens, a multi-tower mid-rise residential development in Cainta, Rizal. This condominium offers two-bedroom units with balcony, smart home features, resort-style facilities and amenities, access to malls and office buildings in the estate.
In addition, Mantawi Residences, RLC’s latest development in Cebu, includes four towers, with one to three-bedroom units and penthouse suites. This property is expected to be finished by 2029.
Federal Land
Federal Land, Inc. also seems optimistic this year, especially in the residential segment. The growth of their residential properties, specifically those for mid- and high-end markets, has been the key driver of their success.
This year, Federal Land revealed its plans to launch new developments in key cities, including Bonifacio Global City (BGC), Cavite, Cebu, Mandaluyong, and Pasay. These developments will focus on residential, commercial, and retail segments. — Angela Kiara S. Brillantes
