By: Eden Lorren Pabalan
Fort Bonifacio is just one of the many financial districts flourishing in the Philippines. From an old army post to a thriving potential financial capital, the Fort is proving its worth as a pot of gold for the local real estate market. As business prospers in the area, luxury residences and office buildings are rising up from the fields and empty lots. Real estate developers and brokers are also expanding operations in the district to provide for the increasing housing demand. This has created an unprecedented boom for the Philippine real estate industry, as more and more foreign investors inject capital into Fort Bonifacio and the surrounding vicinity.
Fort Bonifacio, formerly known as Fort McKinley, is a 25.78 square kilometer historical landmark with a colorful past. Unlike today, Fort Bonifacio used to be home to the Armed Forces of the Philippines, and was a barren piece of land. Establishing malls and highrise buildings may seem ironic due to its proximity to the Libingan ng mga Bayani and the Manila American Cemetery. Despite this, its distance between Makati CBD and Ortigas has made it a top choice for real estate investors and clients.
In 2009, Fort Bonifacio recorded the largest number of new office space occupied- around 62,000 square meters. Despite the Global Economic Crisis, the Fort is still thriving at establishing businesses in the area and constructing infrastructure. Two Serendra is under construction, Shangri-La has started breaking ground, St. Luke’s Medical Center has even established a Global City branch, and BPO companies are continuing to expand in the district. Investing in real estate is considered the best option for those who wish to live in a continually expanding Fort Bonifacio.
The Makati Central Business District, home to many of the country’s top captive BPO companies, such as HSBC, Deutsche Bank and JP Morgan Chase, has recently declined in rental rates for prime office space, suffering a drastic decrease of around 35% in the last quarter of 2009. In contrast, Fort Bonifacio’s rental rates have only decreased by 17%. The Fort is currently the best alternative to Makati CBD in terms of real estate and office spaces.
Future plans for Fort Bonifacio include the establishment of the country’s tallest buliding, which is set to beat out the current title holder: Makati’s 52-story PBCom Tower. Federal Land will construct the 66-storey skyscraper at the heart of the Fort. It’s first 25 floors will be occupied by the Grand Hyatt Hotel. Condominiums in the Fort are also competing in number against Makati’s prime units.
According to Michael McCullough, Director of Makati-based real estate brokerage company KMC-MAG Group, “Real-estate in Fort Bonifacio has already seen an increase of demand since the first quarter of 2010. Prices are already comparable to real-estate in Makati, with buildings primarily catered toward the growing BPO industry. First-class rental and selling rates, new facilities and prime locationing mean that more BPO companies will be looking to make long term real-estate investments in the Fort as the district continues to thrive.”
KMC-MAG Group is a brokerage company that assists clients interested in establishing business in The Fort, and other business districts in the Philippines. They also provide top-notch service to clients in need of office or residential space. Whether for rent, lease or sale, KMC and it’s experienced team of brokers will guide you along the way.