Philippines BPO demand stays strong despite U.S. call center bill
TAGUIG, PHILIPPINES — Philippine real estate leaders express strong confidence in the resilience of the nation’s business process outsourcing (BPO) industry amid proposed United States legislation, according to a report from Malaya Business Insight.
Andy dela Cruz, Megaworld’s real estate investment trust’s (REIT) Head of Investor Relations, stated at a Philippine Stock Exchange’s Strengthening Access and Reach forum that the company “expects the BPO demand to continue growing, despite rhetoric and potential changes in regulations,” citing the Philippines’ enduring strengths.
BPO strengths outweigh U.S. outsourcing rhetoric
Although the proposed legislation aims to pull back on offshoring, dela Cruz noted that the practical implications are unknown and that such language in the past has been an utter failure in preventing the growth of the industry.
“I think it makes more sense for them to still outsource to the Philippines, and hence we see the space to continue remaining resilient and to continue growing even with that rhetoric,” said dela Cruz.
The underlying demand is so strong that it is directly impacting the real estate market, with vacancy rates in office properties easing to 18.2% in the second quarter from 19.4% a year ago.
This data indicates that the need for Philippine office space, much of it driven by BPOs, is actively absorbing available inventory.
BPO growth drives Philippine real estate expansion
The unreserved demand generated by the BPO industry serves as a platform that contributes to the rapid growth of commercial property in the Philippines.
MREIT is riding this long-term growth to hasten its portfolio growth with the updated target of hitting 1 million square meters of gross leasable area in 2027, three years earlier than initially planned.
Such an ambitious goal depends on Megaworld Corporation, its parent company, continuing to provide office assets.
The capital region is not the only market being targeted by this expansion; key provincial hubs are also being targeted, showcasing the nationwide growth of the BPO industry.
MREIT, in particular, has laid out plans to expand its portfolio to 600,000 square meters, with a focus on key outsourcing hubs such as Cebu and Iloilo.
This high-level buildup reflects a long-term, forward-looking bet on the resilience and future growth of the industry, assuming that the demand for quality office space will be high.
