Chung Keng Yang, Digital Service operations manager, Asia-Pacific, Middle East, and Africa, KONE; Effie Chew, head of Environment and Sustainability, Asia-Pacific, Middle East, and Africa, KONE; Petteri Kyrklund, managing director, KONE Philippines; and Serkan Azeboğlu, head of Major Projects, Southeast Asia, KONE.
The Philippine property sector is entering a new era of vertical growth. Industry observers forecast that rapid urban development will soon bring a surge of commercial skyscrapers to Metro Manila and other key cities, with developers eyeing taller, more iconic office towers to meet demand. On the residential side, however, growth is expected to plateau at around 60 floors, reflecting both livability constraints and regulatory considerations.
For companies like KONE, the global leader in elevator and escalator technology, this shift represents a major inflection point. At its recent KONEct 2025 event in Manila, the company positioned itself as a strategic partner to developers navigating this new skyline, unveiling solutions that promise to modernize infrastructure, extend asset life, and deliver sustainable value across the building lifecycle.
Supporting a vertical investment wave
KONE’s new High-Rise MiniSpace™ DX elevator was introduced to the Philippine market as the company’s answer to the demand for taller, denser commercial towers. Specifically engineered for buildings above 150 meters, the system delivers up to 30% energy savings in daily use and as much as 70% when replacing legacy systems. Its UltraRope® hoisting technology—80% lighter than steel cables—enables developers to scale higher while cutting long-term operating costs.
“This is more than just a product launch,” said Petteri Kyrklund, Managing Director for KONE Philippines. “It’s about ensuring that as Philippine cities go vertical, their buildings remain future-ready, efficient, and competitive in a global property market.”
Urban growth meets sustainability targets
The business case for modernization is strengthening. Over 40% of elevators in Asia Pacific have been operating for more than 25 years, yet only a fraction have been upgraded to modern efficiency standards. KONE estimates that targeted modernization—not full demolition—can cut embodied carbon by up to 78%, translating into both environmental and financial benefits for developers and investors.
This strategy aligns with the Philippines’ commitment to reduce greenhouse gas emissions by 75% by 2030 under its Nationally Determined Contribution (NDC). By offering carbon-neutral elevator systems, regenerative drives, gearless motors, and AI-driven predictive maintenance through KONE 24/7 Connect, the company is selling not just mobility but a full sustainability value proposition.
“Driving sustainability isn’t just a responsibility—it’s a growth driver,” noted Effie Chew, KONE’s Head of Environment and Sustainability for Asia-Pacific, Middle East, and Africa. “Developers who modernize faster are likely to capture higher occupancy rates, lower operating costs, and stronger investor confidence.”
Modernization as a market strategy
With 80% of the buildings that will stand in 2050 already built, the Philippine real estate market is not just about breaking ground on new towers. It’s increasingly about revitalizing existing stock. For developers and asset managers, modernization offers a path to extend returns, enhance tenant experience, and comply with tightening environmental standards—all without the disruption and costs of full rebuilds.
Outlook: A race for height and efficiency
Analysts expect the Philippines’ office sector to dominate the skyscraper pipeline in the next decade, especially as multinationals and BPO firms continue to anchor demand in Metro Manila and Cebu. Residential projects, on the other hand, are likely to cap at around 60 floors, where structural feasibility, safety, and buyer preferences converge.
In this evolving market, KONE’s strategy is clear: position itself not just as an equipment supplier but as a long-term business partner for developers navigating the dual pressures of vertical expansion and sustainability compliance.
By aligning its technology with both market demand and climate imperatives, KONE is setting itself up as a crucial player in shaping the Philippines’ next-generation skyline.