Increased demand from the information technology-business process management (IT-BPM) sector took up office spaces vacated by Philippine Offshore Gaming Operators (POGO) since the second quarter this year, boosting opportunities for the real property sector amid the pandemic.
In a virtual briefing Tuesday, Dec. 15, Leechiu Property Consultants chief executive officer David Leechiu said improved fundamentals, along with government measures to address the pandemic and raise funds, and the resiliency of the domestic property market, among others, are seen to prop up the real property sector next year.
He said demand continues to be high in Metro Manila, particularly in Quezon City, Ortigas in Pasig City, and Makati City at 69 percent, followed by those from Iloilo and Cebu.
He traced IT-BPM firms’ office space demand to availability of buildings that are accredited by the Philippine Economic Zone Authority (PEZA) as tax incentives eligible.
“We are confident that they will continue expanding in the country, which remains a leading outsourcing arena for global business now seeking to cut costs and recover from Covid-19,” he said.
Leechiu cited the increased demand in Iloilo, surpassing Cebu and Clark in Pampanga for the first time.
This, after Iloilo was named as the most business-friendly highly urbanized city outside of Metro Manila last year by the Philippine Chamber of Commerce and Industry (PCCI).
Meanwhile, Metro Manila led the areas that were vacated since the start of the year as a result of the pandemic at 442,000 square meters, followed by provincial areas at 98,000 square meters.
Most of these sites are PEZA-accredited at 56 percent followed by non-PEZA sites, 30 percent, and under application for PEZA, 14 percent. — Joann Villanueva (PNA)