BPO industry’s growing demand for office space seem propitious for the Philippine property market
The increasing demand for more office space by the business process outsourcing (BPO) sector in the Philippines is looking favorable for the real estate market and at the same time creating more investment opportunities.
According to Rick Santos, chairman and chief executive officer of CBRE Philippines, the recent decline in the supply of office space in the country will be compensated by additional space that will be available within the year. “This bright prospect in the BPO sector due to its strong macroeconomic fundamentals and its youthful population, along with the strong performance of other real estate sectors, will see the Philippines through and beyond 2016”, Santos added.
CBRE Philippines, a major real estate services and advisory firm held a news conference on September 23, Tuesday. Associate director of CBRE Philippines, Morgan McGilvray noted that the overall vacancy rate trickled down from 3.3 percent to 2.45 during the first quarter of 2014. Although there’s a drop in the first three months, there will be more than 400,000 sq m of new office area which will become accessible within the year. The real estate firm assured the press that there will be no slowing down of the BPO industry in the coming year because the BPO companies are expanding and now looking at setting up their second locations. Santos noted that the volume of the incoming space will be focused in Bonifacio Global City in Taguig. Other BPO-centered locations such as Makati, Ortigas, Quezon City and Alabang will also receive allocation.
Other advancing outsourcing locations on the outskirts of the National Capital Region (NCR) as identified by the global outsourcing firm Tholons are Cebu City, Sta. Rosa City, Bacolod City, Iloilo City and Davao City.