Major trends in the real estate sector are fueled by the
expanding population and the changing living and working preferences of
the younger age group, real estate services provider Santos Knight Frank
(SKF) said on Tuesday.
Santos Knight Frank said the median age of the workforce in the
Philippines is the youngest in a group at only 24.3 years, followed by
India at 27.9, relatively younger compared to Japan’s over 40.
A work-at-home set-up is hindered by factors such as being prone to distractions and slow internet connection, co-working offers a better environment which allows people to collaborate and share ideas in person.
Relative to this, the Philippine Statistics Authority in a 2010
census-based projection projected the Philippine population to have
grown to 142 million by the year 2045, a 50 million increase in just 35
years. At present, the Philippines has a population of around 106
million.
“It’s generally a concept that’s used towards younger people. What we
have seen, people older than the millennials, they tend to go to the
service office a bit more. That’s a little more private, sometimes a
little bit more upscale, that’s generally been their market. And then
the younger they get into the co-working space,” Senior Director of the
Occupier Services & Commercial Agency Morgan McGilvray said.
The rise in co-working spaces is one of the eight real estate trends
the SKF is seeing this year. According to their data, there are 135
locations in Metro Manila categorized as co-working, serviced and shared
offices, most of which are situated in financial districts Makati (38
percent) and Taguig (27 percent).
Property giants Ayala and Robinsons, in particular, ventured into the
market with their brands ClockIn and work.able, respectively, owing to
the arrival of foreign co-working operators such as WeWork and Common
Ground.
Co-working spaces like The Company and iioffice has also pioneered
the phenomenon in Cebu, SKF said, adding that international and local
operators established in Manila are expected to enter Cebu in a matter
of time.
McGilvray said that the co-working, which benefits small firms,
self-employed workers or entrepreneurs, has a great market in the
Philippines.
“In the near-term, I would expect more occupants to come in, to set
up. Eventually they might hold up a little bit and say, okay, do we have
enough co-working, do we have too little co-working, maybe we shouldn’t
grow quite so quickly, but that wouldn’t be for at least a few years. I
think for now, it will continue to grow,” said McGilvray.
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