Manila has emerged as the third most expensive city in Southeast Asia for post-pandemic office fit-outs, according to a report by Cushman & Wakefield.

The report, on June 4, 2023, found that the average cost of fitting out an office in Manila is $1,200 per square meter. It is higher than the average cost in other Southeast Asian cities such as Jakarta ($1,100 per square meter), Bangkok ($1,000 per square meter), and Kuala Lumpur ($900 per square meter).

The higher cost of office fit-outs in Manila is due to several factors, including the rising cost of materials, labor, and technology. In addition, the city’s limited supply of office space is also driving up prices.

Despite the high cost, companies in Manila are still investing in new office space. It is because they are looking to create more collaborative and flexible workspaces that support hybrid working arrangements.

“The demand for office space in Manila is still strong,” said Haidee Lim, director, and head of project and development services at Cushman & Wakefield Philippines. “Companies are looking for new ways to attract and retain talent, and they believe that a modern and flexible workplace is a key part of this.”

The report also found that the demand for office space in Manila to continue to grow in the coming years. It is due to the city’s strong economic growth and status as a regional hub for business and finance.

“Manila is a vibrant and growing city,” said Claro Cordero, director, and head of research at Cushman & Wakefield Philippines. “The city has a lot to offer businesses, and we expect to see continued demand for office space in the years to come.”