Property sector to experience slowdown – JLL

MANILA, PHILIPPINES — Global real estate services firm JLL Philippines anticipates headwinds in the property sector in 2023. 

JLL Philippines’ Research Manager Karisse Garcia noted that these headwinds will be brought about by structural changes and macroeconomic challenges expected to surface this year. 

“We may see rougher currents [in 2023] due to persisting structural changes and macroeconomic headwinds that are weighing down on market activities,” Garcia said. 

However, she notes that the business process outsourcing (BPO) industry will continue to buoy the real estate sector as it remains to be the major demand driver for office spaces. 

“[These drivers] would include the sustained growth of the BPO sector, which is anticipated to accelerate further in terms of both revenue and manpower, coming from the roadmap and forecasts from IBPAP (IT and Business Process Association of the Philippines),” Garcia said.

JLL expects return-to-office rates to move with an upward trend this year.

“Filipinos are already learning how to live with [the] pandemic and this is encouraging more of the population to return back to public places, pulling up not only return-to-office rates but also retail foot traffic, among others,” Garcia said.