A year after the declaration of Martial Law, Prime Philippines, a real estate consultancy, released a report on the impact of President Duterte’s order on the business climate of the city.
Bracing for Impact is a publication with the analysis of the effect of Martial Law to the business industry of the country.
Jet Yu, founder and CEO of Prime Philippines, said in a press conference, said the real estate sector experienced a slowdown in growth in the first half of 2018 with the low anchor brand penetration of in the city.
The analysis revealed that while local brands in the city are still pursuing expansion plans, those that are planning to establish branches here are delaying their plans.
“The martial law stigma has disrupted the aggressive outtake of investors towards Mindanao, which affected growth of retail developments in the city and pushed investors towards provinces in GMM (Greater Metro Manila),” the report said.
A slowdown in the office rental sector has been also attributed to Martial Law. The IT-BPO sectors have reportedly delayed their expansion while the entry of new companies was also halted.
While the total office space supply increased to 183,022 square meters in the first half of 2018, compared to the 152,022 square meters during the same period last year, the occupancy rate plateaued. Last year, 11% of the office space remained unoccupied. The figure increased to 19% this year.
A steady increase in the residential and commercial land sector is also recorded. The firm records that condominiums have mushroomed in the city especially along J.P. Laurel Avenue.
Hotel demand is significantly rising as there as the city continues to positively thrive with tourism. The city has been also identified as an emerging Meetings, Incentives, Conferences, and Exhibitions (MICE) destination.
Yu also cited that agribusiness sector is also appealing.
He also declared that the freeze in some business sectors has actually a positive effect as it can stabilize the business situation, especially that most local businessmen are still overwhelmed with the rebound of the city on the business industry after years of hiatus.