Source references are listed at the end of the report.
Executive Summary
Araneta City in Cubao, Quezon City: A Transit-Oriented Commercial Hub Reimagined
Cubao, Quezon City, continues to solidify its position as a premier transit-oriented commercial hub within Metro Manila. Araneta City in Cubao is a 35-hectare mixed-use district anchored by the iconic Smart Araneta Coliseum, currently undergoing an ambitious redevelopment master plan designed to modernize its infrastructure and better integrate its commercial, entertainment, office, and residential components. Its unparalleled public transport connectivity remains its core competitive advantage, navigating the dynamic landscape of urban renewal by balancing the modernization of aging infrastructure with significant new developments. Q1 2025 sees the district demonstrating resilience in the office sector, continued residential growth, and enhanced accessibility, despite broader market challenges in Metro Manila.
Office Market Overview
Cubao’s office market, including Araneta City, offers a mix of older buildings and newer PEZA-registered Cyberpark towers targeting BPO locators. Its performance is contextualized within the broader Quezon City office landscape.
Vacancy Trends:
While specific vacancy rates for the Cyberpark towers in Araneta City (Cyberpark 1, 2, and 3) are not consistently reported, vacancy levels likely differ within the complex due to variations in the age of office buildings (such as the older Aurora Tower compared to the newer Cyberpark towers). As part of Quezon City, Araneta City contributes to the overall office vacancy rate for the area, which stood at 22.8% at the end of 2024, according to Colliers. For context, established international office markets, including the Toronto GTA, had a vacancy rate of 15.5% in Q4 2024, and the Canadian national average was 18.7% at year-end 2024, illustrating that significant vacancies can exist even in mature markets.
Rental Rates:
Rental rates for Araneta City’s newer, PEZA-registered Cyberpark towers, which specifically cater to BPO companies, are highly competitive, placing them potentially higher than the general Quezon City average (which typically ranges from PHP 680-780/sqm/month but below prime Central Business Districts (CBDs). Older buildings, such as Aurora Tower, likely command lower rents, reflecting their age and amenities. While specific comprehensive rental data for Araneta City is sparse, general office listings indicate a wide range of asking prices.
Key Drivers & Trends:
- Redevelopment and Modernization: The ongoing comprehensive redevelopment program continues to upgrade existing facilities and attract new, quality tenants, enhancing the district’s overall appeal.
- Resilient BPO Demand: The newer Cyberpark towers are specifically designed to meet the stringent requirements of the BPO industry, which remains a consistent demand driver for office space in Quezon City, including Araneta City.
- Unparalleled Transit Connectivity: Exceptional access to two major elevated train lines (MRT-3 and LRT-2) and multiple bus terminals provides a significant competitive advantage for attracting both employees and businesses.
- Integrated Mixed-Use Environment: The seamless integration of office, retail, residential, and entertainment components fosters a vibrant 24/7 ecosystem, increasing convenience for locators and residents.
- New Supply Impact: Cyberpark Tower 3, with an estimated 90,000 square meters of gross floor area, is expected to be completed by Q1 2025, adding significant new inventory to the office market within Araneta City and potentially impacting short-term vacancy rates within the complex.
Residential Market Overview
Araneta City boasts a substantial residential component, predominantly the Manhattan Gardens complex, which significantly contributes to Quezon City’s housing stock and offers a transit-oriented living experience.
Vacancy Trends:
The Manhattan Gardens residential complex in Araneta City, a joint venture with Megaworld, is planned for 18 towers and approximately 9,000 units, with twelve towers reportedly already completed and turned over. Specific vacancy rates for these residential units are not provided. However, as part of Quezon City, which has a notable share of unsold ready-for-occupancy (RFO) condominium inventory, it likely faces similar market pressures. Colliers forecasts that the overall Metro Manila residential vacancy rate could reach 25% in 2025.
Price Levels:
- Sale Prices: Specific projects near Araneta City, such as Aurora Escalades by Robinsons Land, show starting prices around PHP 4.1 million for a 22 sqm unit (approximately PHP 187,000/sqm)—general condominium prices in Quezon City average between PHP 100,000 and PHP 150,000 per square meter. Units within Manhattan Gardens, being transit-oriented, likely fall within or slightly above the QC average.
- Rental Data: Aggregated rental data for Araneta City residential units was not available in the source material.
Infrastructure & Accessibility
Araneta City’s infrastructure and accessibility are its defining strengths, providing unparalleled connectivity across Metro Manila.
Existing Infrastructure:
- Unparalleled Transit Connectivity: The district’s prime advantage is its location at the intersection of MRT-3 (Araneta Center-Cubao station) and LRT-2 (Araneta Center-Cubao station), offering direct, climate-controlled links to major retail hubs like Gateway Mall and Farmers Plaza.
- Major Bus Terminals: Araneta City hosts the integrated Araneta City Bus Station and Araneta City Bus Port, serving a vast network of provincial and city bus routes, making it a critical transportation nexus.
- Internal Network: An extensive system of elevated walkways connects various buildings and transport hubs, significantly enhancing pedestrian mobility and convenience. Ample parking facilities are also available.
- Technology: The entire city is enabled with an ultra-speed fiber optic network infrastructure, supporting modern business and residential needs.
Planned Developments:
- Ongoing Redevelopment Phases: The comprehensive master plan continues to unfold with key projects including the new Gateway Mall 2 (recently opened and significantly expanding retail and dining offerings), the nearing completion of Cyberpark Tower 3 (expected completion in Q1 2025), and the opening of the Ibis Styles Hotel.
- Future Expansions: The master plan outlines further residential towers to complete the Manhattan Gardens complex, potential additional office buildings, the introduction of a new green space called City Plaza, and an integrated resort component, signaling long-term growth and diversification.
- Metro Manila Subway Proximity: While not directly within Araneta City, the district will significantly benefit from its relative proximity to future Metro Manila Subway stations planned at Camp Aguinaldo/Katipunan and Anonas, further enhancing its long-term connectivity.
Key Infrastructure & Developments
| Feature | Status | Key Detail |
| MRT-3 & LRT-2 Interchange | Existing | Direct rail connectivity at Araneta Center-Cubao stations |
| Araneta City Bus Port & Station | Existing | Hub for provincial and city bus routes |
| Gateway Mall 2 & Ibis Styles Hotel | Recently Completed/Opened | Significant expansion of retail, dining, and hospitality offerings |
| Cyberpark Tower 3 | Nearing Completion (Q1 2025) | Adding new, Grade A office inventory, particularly for BPOs |
| City-wide Fiber Optic Network | Existing | Provides high-speed internet connectivity across the district |
| Metro Manila Subway (future) | Planned | Proximity to future stations will further enhance long-term connectivity |
Key Business Presence & Amenities
Araneta City is a vibrant ecosystem supporting a diverse range of businesses and offering extensive amenities.
Major Companies & Industries:
- The Araneta Group (ACI, Inc.): The owner and primary developer, playing a pivotal role in shaping the district’s evolution.
- Retail: A strong presence of numerous local and international retail tenants across its interconnected malls: Gateway Mall (including the newly opened Gateway Mall 2), Ali Mall, and Farmers Plaza.
- BPO: Business Process Outsourcing companies remain key locators, particularly within the modern Cyberpark towers, drawn by PEZA accreditation and connectivity.
- Entertainment & Events: The district is a premier entertainment destination, with the Smart Araneta Coliseum and New Frontier Theater regularly hosting major concerts, sporting events, and cultural shows.
- Hospitality: The presence of Novotel Manila Araneta City and the recently opened Ibis Styles Hotel caters to diverse accommodation needs.
Healthcare:
- MakatiMed Outpatient Care: A significant amenity, Makati Medical Center’s outpatient care access center within Manhattan Plaza Tower 1 provides convenient access to consultations, diagnostic services (ECG, Lab, Imaging – X-ray, Ultrasound, Mammography), and hemodialysis.
- Proximity to Hospitals: The area benefits from its strategic proximity to other major hospitals along EDSA and within Quezon City, ensuring comprehensive medical access.
Dining & Lifestyle:
Araneta City offers an exceptionally diverse and extensive dining scene, catering to all preferences and budgets.
- Mall Dining: Options range from popular fast food chains and expansive food courts in Farmers Plaza and Ali Mall to a wide selection of casual and mid-range dining establishments in Gateway Mall and the Citywalk areas. The recent opening of Gateway Mall 2 has significantly expanded the premium and varied dining experiences.
- Variety: The Food & Beverage (F&B) establishments strategically cater to the diverse foot traffic, including event-goers, shoppers, local employees, and residents, ensuring a constant buzz and a wide array of choices.
Livability Assessment
Araneta City presents a compelling case for urban living, albeit with a unique set of trade-offs.
Strengths:
- Exceptional Public Transportation & Connectivity: This remains the paramount strength, providing unmatched access via MRT-3, LRT-2, and major bus terminals, ensuring excellent connectivity throughout Metro Manila.
- Comprehensive Amenities: Residents and visitors benefit from an unparalleled range of shopping, dining, and entertainment options, catering to diverse budgets and preferences, all within walking distance.
- Major Event Venues: The presence of the Smart Araneta Coliseum and New Frontier Theater creates a dynamic environment, hosting significant national and international events.
- Ongoing Redevelopment & Modernization: Continuous investment and modernization efforts are visibly improving the district’s appeal, infrastructure, and facilities, promising future enhancements.
- Relative Safety within Complex: The main commercial complex is generally perceived as safe due to 24/7 activity, visible security personnel, and well-lit areas.
- Relatively Affordable Residential Options: Compared to prime CBDs, Araneta City offers more accessible and relatively affordable residential choices, particularly within the Manhattan Gardens complex.
Challenges:
- High Crowding and Congestion: The district can experience significant crowding and congestion, particularly around transport hubs and during major events, which can be overwhelming for some.
- Aging Infrastructure (in parts): Despite ongoing renovations, some older sections of the complex may still appear dated, creating a contrast with the newer developments.
- Urban Stressors: Noise and air pollution from surrounding major thoroughfares like EDSA and Aurora Boulevard are prevalent, contributing to typical urban stressors.
- Safety Perception Outside Complex: While generally safe within the core, perceived safety concerns may arise when venturing into areas immediately outside the well-managed Araneta City complex.
- Dense Urban Environment: The residential environment, particularly within the Manhattan Gardens complex, is characterized by high density and an intensely urban feel, which may not appeal to those seeking more spacious or serene surroundings.
HI’s Perspective / Our HI Five score
Araneta City scores Medium in terms of livability. Its primary and most significant strength lies in its exceptional accessibility through public transportation and the sheer variety of amenities concentrated within a compact, transit-oriented district. It is highly convenient for commuters and those seeking a wide array of entertainment and shopping options.
However, the high density, constant crowds, and potential for noise and congestion can detract from its appeal for individuals or families seeking a quieter residential environment. The atmosphere is extremely busy and energetic, a mix of old and new due to the ongoing redevelopment. Its livability score is heavily dependent on an individual’s tolerance for urban intensity versus the value placed on convenience and accessibility. The ongoing redevelopment holds promise for continued improvement of the overall environment.
This report is based on market data as of Q1 2025. HousingInteractive provides this analysis for informational purposes only.
References
[1] Colliers: Property market worsens in 2024 – Manila Bulletin
[2] PHL office vacancy soars to 19.8% in 2024, expected to rise in 2025 – Colliers
[3] pdf.Savills.Asia
[4] Office Market Outlook – Lobien Realty Group
[5] Colliers: Clearing of MM residential inventory to take 6 years – Inquirer Business
[6] What are the average condo prices in Manila in 2025? – Bamboo Routes
[7] Office Pro Search Results | Office Space to Lease & Rent
[8] Market Insight Report 2024 – Cresa
[9] ACI, Inc. – The Araneta Group
[10] ACI Inc. – Araneta City
[11] Canada Office Figures Q4 2024 – CBRE
[12] Aurora Escalades – Cubao, Quezon City – Pre-selling Condos
[13] MakatiMed Araneta City – Makati Medical Center
[14] Araneta group: Cyberpark Tower 3 on track for 2025 opening – BusinessWorld
