Muntinlupa is likely to see the highest growth in demand for commercial properties in 1H2021 and 2H2021, according to Lamudi’s trend report titled What’s Next: A Forecast on PH’s Residential and Commercial Real Estate in 2021. Muntinlupa saw the highest growth in pageviews and leads on the Lamudi platform from 1H2020 to 2H2020 at 39.49%, and is forecasted to increase by 17.91% from 1H2020 to 2H2021. The expected spike in demand for properties in the city is evident of a demand shift towards the south of Metro Manila.
An opulent residential hotspot and growing business district
Muntinlupa has long been recognized as a destination for upscale residential property developments and lavish suburban living. The city was awarded for Good Financial Housekeeping in 2020, and qualified for Seals of Good Local Governance and Child-friendly Local Governance in 2019.
It was one of the top 10 real estate hotspots in Lamudi’s previous trend report, Hotspots Unwrapped: 2020’s Most Popular Locations. Last September, Filinvest City, a 244-hectare township located at the heart of Muntinlupa, won the prestigious Gold Stevie Award under the Real Estate Category of the 2020 International Business Awards, as reported by the Manila Times.
Alabang, a notable barangay in Muntinlupa, was featured as one of global real estate consultancy Knight Frank’s luxury home hotspots in 2019, citing ambitious mixed-use developments that integrate residential and commercial developments amid green landscapes. Residents of Alabang enjoy expansive open green spaces, private country clubs, lifestyle centers, schools, and easy access to a burgeoning business district.
The city has 10 operating Information Technology (IT) Parks and Centers accredited by the Philippine Economic Zone Authority (PEZA), mostly located in Filinvest Corporate City and Madrigal Business Park in Alabang. Locators in these areas enjoy certain commercial benefits such as tax incentives and income tax holidays. Muntinlupa presents to investors a less congested alternative to central business districts in Metro Manila, and has successfully attracted various knowledge process outsourcing companies (KPO) to the area. Colliers International expects more firms to take up commercial space in Alabang, the Bay Area, as well as central business districts in Makati and Ortigas over the next year as available PEZA space dwindles. To retain tenants rethinking their office footprint, Lamudi advises lessors to innovate and provide value-added services that address health & safety measures as well as flexible working trends.
Gateway to the South
Increasing interest in Muntinlupa as an integrated luxury residential community and business location is supported by the development of more transportation infrastructure in the city. It is bordered by Taguig, Paranaque, Las Pinas, and Laguna, making it a convenient entry point between cities in the south to other central business districts. The Skyway Stage 3 project, which officially opened last month, decongests EDSA and cuts down travel time from the North Luzon Expressway to South Luzon Expressway and vice-versa down to only 30 minutes.
The availability of multiple point-to-point (P2P) bus schedules directly from Alabang Town Center to other high-traffic sites in Laguna, Makati, Taguig, and even Ninoy Aquino International Airport terminals have further opened up access to the south and eased commuting to and from the metro. The diverse mobility options in Muntinlupa have also increased the convenience of residing and working in the south.
Demand for provincial cities to boom
The development of transportation infrastructure projects across the country has facilitated more access to areas outside highly urbanized cities, and attracted more firms to invest in provinces. Lamudi’s recent trend report illustrated an uptick in demand for real estate outside Metro Manila, particularly in cities located near IT parks. Lamudi identified three cities in the south–Binan, Sta. Rosa and Silang–as hotspots for investors in 2021, for both their proximity to IT parks and favorable business climate.
Pageviews and leads for commercial spaces in Laguna and Cavite are seen to increase from the first to second half of the year, as new roads provide property seekers more access to these densely populated areas. The desire for spaces in fringe cities is supported by lower prices per square meter and a favorable policy environment towards warehousing and logistics companies.
Sources: Colliers International, Knight Frank, Manila Times