Demand for BPO offices has increased by 160 percent, indicating a robust rebound
According to a report by Leechiu Property Consultants, the Philippine office sector is poised to take off and resume its pre-pandemic development trajectory (LPC).
Demand for office space increased by 38% in the second quarter of 2021, from 122,000 square meters (sqm) in the first quarter to 169,00 sqm in the second.
According to LPC Chief Executive Officer David Leechiu, office demand is at an all-time high since the outbreak began.
Demand has increased to 291,000 sqm in the first half of 2021.
“For the whole of 2020, this is already 75% of demand. “Without a question, the Philippines has resurfaced on the radar of global occupiers,” Leechiu added.
Even more noteworthy, the business process outsourcing (BPO) sector accounted for 92,000 sqm or 54% of demand in the second quarter of 2021.
It increased by 160 percent from 35,000 sqm in the first quarter. “driven by the West’s economic stability.”
“BPOs are returning, even though they were relatively quiet in 2020,” Leechiu added. “The same factors that drew BPOs to the Philippines during the 2008 financial crisis are again working in our favor.”
The introduction of coronavirus disease 2019 (Covid-19) vaccinations and the passing of Senate Bill 2232, which addressed tax worries of Philippine online gaming operators, have boosted investor confidence (POGOs).
With international borders reopened, POGOs are anticipated to rekindle their interest in the Philippine office sector, boosting the country’s economic recovery.
All of these factors have conspired to help the Philippine office market. According to the research, its comeback this quarter is a strong and obvious sign of recovery.