Metro Manila (CNN Philippines, December 15) – According to the latest study by Leechiu Property Consultants (LPS), demand for office space in the Philippines is expected to continue to pick up over the next year, with information technology and business process management (IT-BPM) companies mostly ahead.
LPC has set the country’s office demand at 540,000 square feet (mÂ²) in 2021, an increase of nearly 40% year over year.
The real estate consultancy announced that the industry represents 257,000 mÂ². or nearly 50% of total demand this year. That portion of the cake grew 36% year over year, she added.
Metro Manila is the most important market for IT-BPM companies looking for office space this year, followed by Iloilo Province and the Ortigas, Mandaluyong and San Juan district clusters.
“IT-BPMs will continue to be the largest single demand driver for the next few years,” said David Leechiu, LPC’s chief executive officer.
In the first half of 2022 alone, the industry is expected to use 132,000 mÂ². of the 224,000 square meters of office space should then go live.
“The breakthrough in digitization brought about by the pandemic has now benefited many other companies in terms of expansion mode and contribution to demand,” said LPC.
Philippine Offshore Gaming Operators (POGOs) – a key driver of office demand prior to the COVID-19 pandemic – are expected to be just 1,000 square meters. the office space that will become free in the first semester of the following year.
The industry resulted in a decline in office space in the last three months of 2021, which was 53% or 56,000 mÂ². the total estimate over the period.
Looking ahead, LPC noted the role of relaxed travel and quarantine restrictions in boosting the country’s tourist spots and increasing provincial total land values, saying that “the stage appears to be set for a macro-level recovery”.
Leechiu also expects better times with new infrastructure projects that will lead to more connectivity and productivity. The current vaccination progress and low COVID-19 numbers point to an improved situation for the country.