The Market Monitor Minding the Nation's Business
PROPERTY consultant Savills Philippines urged the government to lift its moratorium on economic zone accreditations for information technology parks and buildings in Metro Manila and proposed that new incentives be granted exclusively to environmentally-sustainable developments.
The real estate solutions provider said in a report released in June 2026 titled “Lifting the PEZA Metro Manila Moratorium: A Green Building Accreditation Framework” that a conditional lifting of the ban will address elevated office vacancies while advancing national sustainability goals.
The Philippine Economic Zone Authority (PEZA) previously froze new IT building accreditations in the National Capital Region to decongest the metropolis and drive outsourcing investments toward rural provinces.
Savills Philippines said that Metro Manila now faces a severe oversupply of high-quality office space. This drop in demand follows the exit of Philippine Offshore Gaming Operators (POGOs) and the widespread adoption of hybrid work setups by the IT-business process management (IT-BPM) sector.
At the same time, outsourcing firms struggle to find available tax-incentivized spaces in areas where most of their employees live.
“The irony is stark: Metro Manila has abundant, high-quality office space sitting empty, yet PEZA accreditation for new buildings remains frozen blocking a natural market recovery mechanism,” Savills Philippines said in its report.
Instead of an outright, blanket lifting of the restrictions, the property consultant recommended a market-based compromise.
Under the framework, the government would open up PEZA applications in Metro Manila only to buildings that secure certifications from recognized green rating bodies. These include the Leadership in Energy and Environmental Design (LEED), Building Ecologically Responsive Design Excellence (BERDE), Excellence in Design for Greater Efficiencies (EDGE), or WELL standards.
The property consultant said the green building filter converts a binary moratorium decision into a quality-driven market instrument.
The strategy aims to transform the current oversupply of real estate into a distinct competitive advantage. Multinational outsourcing tenants face increasingly strict corporate environmental, social, and governance (ESG) targets, making energy-efficient workplaces a key requirement for foreign investment.
The targeted framework intends to protect the government’s countryside development objectives. By keeping the barrier to entry high in the capital region, lower-tier provincial markets will maintain their competitive edge for standard developments, while Metro Manila repositions itself as a premium, ESG-aligned global hub.
The report contains a detailed implementation roadmap alongside risk-mitigation measures. Savills Philippines recommended that PEZA coordinate with the Fiscal Incentives Review Board, the Department of Trade and Industry and the Philippine Green Building Council to execute the policy shift.“At Savills Philippines, we recognise that the future of real estate is fundamentally shaped by how effectively policy, sustainability, and market forces are aligned to create spaces that are both economically resilient and environmentally responsible,” the firm said.