Philippines’ Cebu office market rebounds in H1 2025 on outsourcing boom
CEBU, PHILIPPINES — Cebu’s office market has decisively turned a corner, recording its strongest post-pandemic performance in the first half of 2025, according to Colliers Philippines.
In a report from The Freeman, a resurgence in expansion by major business process outsourcing (BPO) firms has driven vacancy rates to a new low and transaction volumes to a record high, solidifying the city’s status as the Philippines’ premier regional hub.
BPO expansion fuels unprecedented market recovery
The information monitored by real estate services company Colliers Philippines indicates that BPO firms accounted for an overwhelming two-thirds of the total office requirement, which reduced the total vacancy rates of 21.3% to 16.8% in only one quarter.
“Cebu is at a turning point. For the first time since the pandemic, office vacancy has eased below the 20 percent mark driven by large transactions and key BPO players expanding their footprint in the region,” said Kevin Jara, Colliers Director and Head of Office Services – Tenant Representation.
“This renewed momentum reinforces Cebu as the leading market outside of the nation’s capital and signals a broader shift towards growth in regional hubs.”
This action led to 88,000 square meters of business in the first half, and this number has already surpassed the total of 2024.
This growth was dominated by established players significantly scaling their operations, with major transactions confirmed from industry giants like Asurion, Concentrix, Wipro, and EXL Service.
The scale of this rebound is quantified by the net take-up, which skyrocketed to 84,200 square meters—a staggering 362% increase compared to the same period last year. This data underscores a powerful return of corporate confidence and a strategic bet on Cebu’s long-term viability as a critical outsourcing destination.
Robust supply pipeline supports long-term growth
The present demand boom is countered by an equally strong and strategic supply pipeline that portends long-term growth rather than one tied to a temporary recovery.
According to Colliers Philippines, 112,800 square meters of new office spaces are also ready to be completed by the year 2025, as high-profile projects within strategic precincts such as the Cebu IT Park are at the forefront.
Bold venture into new buildings is a direct reflection of the red-hot market conditions, with Colliers forecasting net absorption to end the year at 100,000 square meters.
The relationship between record demand and strategic growth in supply is solidifying Cebu as not only one of the recovering markets but also the most robust and vibrant office market in the Philippines outside the national capital.
