Real estate agency JLL Philippines said the Philippines lagged behind its ASEAN neighbors in logistics development and investments as it concentrated in the services sector. However, the country is expected to catch up as opportunities for investors abound.
In a virtual webinar, the firm estimates the country’s demand for logistics space to grow by approximately 160,000 sqm per annum in the next 10 years. Their estimates showed lower take-up by end-2020, reflective of the impact of the COVID-19 pandemic.
A possible rebound is also projected to take place in 2021, given the pipeline build-up due to deferred transactions.
To attract investors in the logistics sector, Stuart Ross, JLL SEA head of industrial, presented a study showing that 81 per cent of investors planned to increase their exposure to logistics by end 2021 as the sector continued to be undervalued.
“More groups are trying to get in the logistics sector,” he added.