MANILA -- The real estate sector has been going through a major transformation over the past few years driven by decentralization and the emergence of new opportunities outside Metro Manila, which inevitably calls for supporting infrastructure.
Amid challenges in infrastructure and connectivity, the sector has seen strong demand for last-mile delivery hubs, inner-city distribution centers, cold storage, and warehouse facilities.
Kash Salvador, Associate Director of Investment & Capital Markets at Santos Knight Frank, in a press interview on Monday at Makati Shangrila Hotel, said that more warehouses are needed outside the Metro especially in parts of Visayas and Mindanao to connect suppliers with customers.
“The scarce industrial land in Metro Manila, the drive towards decentralization and the huge demand in the e-commerce and traditional retail sectors offer huge opportunities for players in the logistics and real estate sector,” he added.
Investments in transportation and storage grew by 626 percent to PHP129.6 billion in 2018 from PHP17.8 billion in 2017, according to the Board of Investments.
To increase efficiency and profitability, warehouse operators are adopting new technologies such as the Automated Storage and Retrieval Systems and adding new services.
In addition, developers are exploring the fringes of Manila and the regions for the next site of their industrial investments, capitalizing on rising demand in various hubs across the country. (PNA)
