Real estate service company CBRE Philippines expects the business process outsourcing industry to sustain its growth momentum over the next two years as hospitality, gaming and retail will provide new growth opportunities for the property sector.
CBRE Philippines founder and chief executive Rick Santos said in a press briefing the BPO sector would remain the top driver of investments in the country, with the demand for offices on an upward trajectory.
“Even with the increase in rental rates across all business districts, the good news remains that investors are willing to pay for the quality and value that they can get in the Philippines,” Santos said.
Office landlords in 2014 increased rents to P1,306 per square meter for prime office space, P898.8 for grade A in Makati, P848.3 in Bonifacio Global City, P604.7 in Ortigas and P606.8 in Alabang.
This brings the historical weighted average lease rates in Metro Manila to P816.27 per sq. m., which is still below the peak of P850 per sq. m. recorded in 2008.
Over 1.4 million sq. m. of office spaces will emerge over the next two years, mostly located in Fort Bonifacio, Taguig and Makati.
Meanwhile, CBRE Philippines sees the steady flow of investments in the new and emerging sectors, like hospitality, retail and gaming.