Colliers identified key issues and opportunities in the Iloilo property market particularly in the office, residential and retail sectors.
We are pleased to announce that our Iloilo property market report for the first quarter of 2019 is now available. In these reports, we identified key issues and opportunities in the Iloilo property market particularly in the office, residential and retail sectors.
Office Sector: Large BPO firms eye expansion
Iloilo City offices continue to attract major occupants such as call centres and legal transcription service providers. Colliers believes that offices in the city should remain attractive among tenants looking for Philippine Economic Zone Authority (PEZA)-proclaimed spaces. Colliers recommends that developers target non-outsourcing tenants especially for buildings waiting PEZA approval; explore the viability of building offices on the proposed Iloilo reclamation project; and explore developing mixed-use townships outside Iloilo City. Meanwhile, tenants looking for alternative sites outside Manila should consider Iloilo.
Residential Sector: Horizontal trumps vertical
Iloilo’s residential market is still primarily horizontal (house and lots) although Colliers is seeing a growing attractiveness in condominium living especially in the city’s major business district. To take advantage of the thriving Iloilo residential market, Colliers encourages developers to launch affordable and mid-income condominium units as these are the most attractive to Iloilo City households and investors; explore areas outside of the business district feasible for mid-rise condominiums; align developments with key infrastructure projects; and consider developing new condominium projects within townships located in the city’s business district.
Retail Sector: Smaller retail formats to drive supply
Colliers sees greater retail space absorption in the Mandurriao area, especially in the Iloilo Business Park, as it benefits from office towers and hotels in the business district. Colliers sees many opportunities for Iloilo retail. To maximize returns from these opportunities, Colliers urges developers to differentiate offerings of new malls; explore alternative sites for smaller retail formats; build neighbourhood malls in townships; and use pockets of vacancy to improve tenancy. Meanwhile, tenants should look for space in malls located in major business districts such a Mandurriao and near residential communities where there is sustained consumer traffic.
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