MR Logo

BPO Philippines Increases the Demand for the Real Estate Market

Posted by graham on July 29th, 2013 in Insourcing Industry

The Philippines continues to be the top outsourcing hub in the world due to its lower operational and labour costs. Aside from these qualities, another major factor would be the excellent communication skills of the Filipino people especially in English-speaking.

As the BPO industry continues to grow, the Philippine real estate market continues to expand along with it. There is a notable sustained growth for offshore outsourcing industries and call centre industries that are located in Metro Manila along with some other provincial locations. This growth is seen to increase up until the year 2015 and due to this, there is a high demand for office spaces and for residences.

This demand for real estate is encouraging developers to provide more office establishments so that the country or the Central Business Districts (CBD) will be able to accommodate for this continuous growth of the BPO industry. Business Process Outsourcing providers no longer limit themselves to Metro Manila as some have already expanded to provincial areas such as Cebu. While this is the case, the top preferred locations for BPOs remain  in the Business Districts of Metro Manila such as Makati, Ortigas and the business district that is reported to have the fastest growth rate, Bonifacio Global City.

Since 2006, more than 50% of the office spaces that have been leased in the country have been prominently taken up by businesses that deal with Business Process Outsourcing. The result of this is that the demand for office space went up to an average of 300,000 to 360,000 square meters yearly especially in Makati which is Metro Manila’s Central Business District.