The local property sector is experiencing a drastic transformation over the past few years due to decentralization efforts, as well as the emergence of new opportunities outside of Metro Manila, needing forth complementary infrastructure projects.
Despite running into challenges in connectivity and infrastructure, the real estate industry is seeing robust demand for last-mile delivery hubs, inner-city distribution centers, cold storage, and warehouse facilities.
According to Kash Salvador, Associate Director of Investment & Capital Markets at Santos Knight Frank, more warehouses will be needed outside the Metro especially in the Visayas and Mindanao to connect suppliers with customers.
“The scarce industrial land in Metro Manila, the drive towards decentralization and the huge demand in the e-commerce and traditional retail sectors offer huge opportunities for players in the logistics and real estate sector,” he added.
Investments in transportation and storage grew by 626 percent to PHP129.6 billion in 2018 from PHP17.8 billion in 2017, according to the Board of Investments.
To bolster efficiency and profitability, many warehouse operators have started integrating new technologies such as the Automated Storage and Retrieval Systems, and more cutting edge services.
In addition, developers are exploring the fringes of Manila and the regions for the next site of their industrial investments, capitalizing on rising demand in various hubs across the country.
Source: Philippine News Agency
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