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Manila's Logistics Rental Rates Rise 1.6% in Late 2024

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03/15/2025
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Manila’s Logistics Rental Rates Rise 1.6% in Late 2024

by Raxer X.
03/15/2025
in Industry, Logistics & Transportation

In the second half of 2024, Manila’s logistics rental rates experienced a year-on-year increase of 1.6%, reaching ₱389 per square meter per month, according to the latest edition of the Asia-Pacific H2 Logistics Highlights by Knight Frank. This growth positioned Manila ninth among 17 cities in the region and surpassed the Asia-Pacific average growth rate of 0.2%.

This uptick follows a significant surge in 2023, where Manila led the region with a 39.3% increase in logistics rental rates, driven by the rapid expansion of the e-commerce sector.

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The deceleration in growth during the latter half of 2024 suggests a stabilization in the market.

The sustained demand for warehouse space in Manila is attributed to the country’s robust manufacturing and logistics sectors. In the latter half of 2023, manufacturing firms accounted for 41% of the demand for industrial warehouse spaces, while third-party logistics (3PL) and fast-moving consumer goods (FMCG) firms contributed 22% and 21%, respectively.

Infrastructure developments aimed at enhancing connectivity to key industrial centers are expected to further bolster the logistics sector. These initiatives include improvements in air travel, expressways, railways, and port facilities, facilitating the seamless flow of goods and services across the region.

Despite the recent moderation in rental growth, Manila’s logistics market remains resilient, underpinned by strong domestic consumption and a thriving e-commerce landscape. Industry stakeholders anticipate that ongoing infrastructure projects and sustained demand will continue to support the sector’s stability in the coming years.

Discover supply chain logistics news updates on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#ManilaLogistics #RentalRates #EcommerceGrowth #InfrastructureDevelopment #WarehouseDemand

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  • Home
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  • Compliance
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© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.