POGOs to drive real estate growth

Philippine offshore gaming operators are expected to sustain the strong demand for office and residential spaces in Metro Manila and Southern Luzon over the next couple of years, Colliers Philippines said Thursday.

Colliers said in a report focusing on Southern Luzon that offshore gaming firms from China were dominating office space absorption in Luzon.

“The relentless growth of these firms is one of the reasons why they have started to occupy space in the capital region. With tight vacancy conditions in Metro Manila, these firms have started to occupy office space in Cavite and Laguna and this demand should spill over to the residential sector,” Colliers said. 

“We remain optimistic that POGOs are to continue to lead office space take-up over the next two to three years, especially with continued efforts from lawmakers to legitimize their operations,” it said.

Colliers cited data showing that the Southern Luzon region (including Cavite, Laguna and Batangas) economy expanded by about 6.3 percent per year from 2016 to 2018. This makes Southern Luzon one of the fastest-growing regions in the Philippines.