Outsourcing industry to buoy office space market in 2022: Leechiu | ABS-CBN
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Outsourcing industry to buoy office space market in 2022: Leechiu
Outsourcing industry to buoy office space market in 2022: Leechiu
Jessica Fenol,
ABS-CBN News
Published Dec 15, 2021 03:24 PM PHT
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Updated Dec 15, 2021 04:18 PM PHT
MANILA— Office space demand in the country is seen to revert to its 2016 levels, or before the "hyper" growth from the offshore gaming industry, on the back of continued outsourcing growth, a consulting group said Wednesday.
MANILA— Office space demand in the country is seen to revert to its 2016 levels, or before the "hyper" growth from the offshore gaming industry, on the back of continued outsourcing growth, a consulting group said Wednesday.
The IT-Business Process Management (IT-BPM) and the business process outsourcing (BPO) industries are seen to buoy the growth moving forward, Leechiu Property Consultants said in a briefing.
The IT-Business Process Management (IT-BPM) and the business process outsourcing (BPO) industries are seen to buoy the growth moving forward, Leechiu Property Consultants said in a briefing.
Overall office take-up surged in the last quarter by 74 percent to 160,000 square meters from 92,000 sqm in the third quarter, "propelled" by the sector, data from the group showed.
Overall office take-up surged in the last quarter by 74 percent to 160,000 square meters from 92,000 sqm in the third quarter, "propelled" by the sector, data from the group showed.
Out of the Q4 total, IT-BPM accounted for around 81,000 sqm, Leechui said.
Out of the Q4 total, IT-BPM accounted for around 81,000 sqm, Leechui said.
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Office, retail and other real estate demand surged in recent years due to the unusual growth in the Philippine Offshore Gaming Industry (POGOs) in the country.
Office, retail and other real estate demand surged in recent years due to the unusual growth in the Philippine Offshore Gaming Industry (POGOs) in the country.
Demand from POGOs, however, declined during the pandemic as reopening requirements tightened tax rules for the industry.
Demand from POGOs, however, declined during the pandemic as reopening requirements tightened tax rules for the industry.
Based on the rules released by the Philippine Amusement and Gaming Corp, only those that we're able to pay their taxes in full will be allowed to reopen following temporary closures last year due to COVID-19.
Based on the rules released by the Philippine Amusement and Gaming Corp, only those that we're able to pay their taxes in full will be allowed to reopen following temporary closures last year due to COVID-19.
Several firms have left the country in what lawmakers called a POGO "exodus."
Several firms have left the country in what lawmakers called a POGO "exodus."
But the office space market will be driven by the outsourcing space, Leechiu Property Consultants CEO David Leechiu said.
But the office space market will be driven by the outsourcing space, Leechiu Property Consultants CEO David Leechiu said.
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"Office demand in 2022 will most likely bounce back to 2016 levels, prior to the hyper, POGO-driven years from 2017 to 2019," he said.
"Office demand in 2022 will most likely bounce back to 2016 levels, prior to the hyper, POGO-driven years from 2017 to 2019," he said.
“IT-BPMs will continue to be the largest single demand driver in the next few years,” he added.
“IT-BPMs will continue to be the largest single demand driver in the next few years,” he added.
Real estate has also benefitted from digitalization which was accelerated by the pandemic as most firms expand. These have been contributing to the demand, he said.
Real estate has also benefitted from digitalization which was accelerated by the pandemic as most firms expand. These have been contributing to the demand, he said.
Meanwhile, land values across all business districts are likely to keep rising in 2022 in anticipation of the improving economic and health conditions in the country, LPC director for Investment Sales Tam Angel said.
Meanwhile, land values across all business districts are likely to keep rising in 2022 in anticipation of the improving economic and health conditions in the country, LPC director for Investment Sales Tam Angel said.
He said "2022 could very well be the first of the bull run years."
He said "2022 could very well be the first of the bull run years."
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In the residential segment, buyer confidence has improved due to the drop in COVID-19 cases, reopening of the economy and easing of travel restrictions, the company said. This is also the case in the provinces, it added.
In the residential segment, buyer confidence has improved due to the drop in COVID-19 cases, reopening of the economy and easing of travel restrictions, the company said. This is also the case in the provinces, it added.
"On the macro level, the stage seems set for recovery. The easing of travel and quarantine restrictions have increased mobility, boosted the attractions of tourism destinations and helped increase overall land values in the provinces," the company said.
"On the macro level, the stage seems set for recovery. The easing of travel and quarantine restrictions have increased mobility, boosted the attractions of tourism destinations and helped increase overall land values in the provinces," the company said.
Metro Manila will remain under the less restrictive Alert Level 2 for the remainder of the year despite the continued drop in cases as a precaution against the new COVID-19 omicron variant.
Metro Manila will remain under the less restrictive Alert Level 2 for the remainder of the year despite the continued drop in cases as a precaution against the new COVID-19 omicron variant.
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