IT-BPM expansions to drive up office demand to pre-pandemic levels
The continued expansion of the IT-BPM (Information Technology and Business Process Management) sector in the Philippines will likely drive office demand close to pre-pandemic levels, said property consulting firm Leechiu Property Consultants (LPC).
In a press release, LPC reported that the current live requirements for transactions in various stages of negotiation reached their highest records since the start of the pandemic at 451,000 square meters in Q2. IT-BPMs account for 212,000 sq.m. of the total.
“These numbers are bound to gain fresh impetus given the new Marcos administration’s
perceived determination to return to business as usual and its reluctance to impose new
Lockdown,” said LPC CEO David Leechiu.
Aside from the office segment, Leechiu added that the residential and tourism sectors are well positioned to enjoy strong growth this year due to “a multitude of global headwinds” — including global inflation and rising interest rates.
Leechiu explained that real estate has “always been considered one of the safest assets for
capital preservation in times of economic uncertainty.”
Amidst the string of crises experienced over the past decades, he cited investments in residential lots in the high-end gated subdivisions in Metro Manila proving to be excellent stores of value.
Leechiu further stated that the Philippines is likely to benefit from the current trend of
foreign travelers seeking cheaper tourism in the face of rising inflation worldwide.