Analysts and reports predict more companies utilizing some form of hybrid working arrangements next year. The local property market is set to benefit from this, too. And with the return of office leasing, all eyes are now on the business process outsourcing sector to bolster residential investment.
As the fastest-growing industry in the modern-day Philippines, BPOs might just be the key to driving real estate investments in the next several years. Data from Leechiu Property Consultants show that from 2001 to 2015, the Philippine economy relied primarily on BPO revenue and Overseas Filipino Worker (OFW) remittances. More multinational companies and foreign investors set up shop in the country, as well, including ePLDT Ventus, PeopleSupport, and The Convergys Corp., among others. The sector also accounts for 7% to 8% of the country’s Gross Domestic Product.
Even during the height of the pandemic, the industry’s expansion persisted. In 2019, information technology and business process management investment pledges amounted to ₱8.32 billion. The Philippine Economic Zone Authority even reported a 37% increase at ₱11.4 billion.
Now that the worst of the pandemic is behind us, groups like the IT and Business Process Association of the Philippines (ITBPAP) expects an 8% increase in export earnings by the end of 2021. This totals to about $28.8 billion. An 8% increase in BPO employment is expected, too.
The growth of the industry has created a new batch of condominium buyers in the years before the pandemic. We should expect much of the same moving forward. In 2017, there were roughly 80 IT parks and business districts.
In addition, the construction boom of the past few years has either improved these developments or added to that total. This includes the continued progress of districts outside the National Capital Region (NCR), notably the Clark Special Economic Zone, Cebu Business Park, and Iloilo Business Park.
Residential takeup around these parts is and will be led by BPO and offshore gaming employees. We can also assume higher purchase and lease rates in the real estate market soon.
Projects Around BPO Districts
Certainly, one can buy real estate in Quezon City, Mandaluyong, and Pasay Bay Area and expect steady gains in the next few years as more BPO employees search for homes near their respective workplaces. Quezon City has BPO hubs like Eastwood City and UP-Ayala Technohub while Mandaluyong has the Ortigas Center. The Bay area’s Mall of Asia Complex is a BPO hotspot, as well. There is also a healthy supply of condos available around these areas on the Ohmyhome website.
Colliers International Philippines sees property prices increasing by 1.5% while rental rates could see a 1.7% spike. Choose a condo around these parts and you can also expect an average annual appreciation rate of 5.7%.
There are also attractive property investment opportunities waiting outside NCR. As alluded to earlier, Cebu, Iloilo, and Pampanga are three of them. These all present end-users and investors with the opportunity to invest in spaces that can be rented out to the BPO sector around key business districts.
Cebu has also seen a slight recovery in 2021, mostly due to pent-up demand. Colliers International Philippines also noted that condo prices in the province are set to increase by 4% this year. In Iloilo’s case, the city’s capital was one of the most improved local government units in the years before the pandemic. In 2018, the Philippine Chamber of Commerce and Industry even awarded it as the Most Business-Friendly Highly Urbanized City (HUC).
Pampanga real estate, on the other hand, is poised for a mini-boom of its own due, in large part, to the Clark Special Economic Zone. The SM City Clark Complex, for instance, has six existing BPO towers at its Tech Hub. In 2020, four more towers were approved by Philippine Economic Zone Authority (PEZA). Existing buildings for BPO employment already house roughly 14,000 employees, mostly coming from neighboring provinces in Central Luzon. Expect to see these numbers rise in the near future.
Property buyers and investors should think of BPOs as early as now, as they will be the sector that may ultimately push real estate investment traffic in 2022. With lowered interest rates, flexible payment terms, and exclusive discounts, buying a home at these BPO hot spots may be the key to growing your wealth in a post-pandemic Philippines.
Are you looking to buy a home in and around these locations? Book a free consultation with an Ohmyhome property agent today to get started! For more information on the best and latest property listings nationwide and how our Ohmyhome’s online ecosystem helps investors like you, visit Ohmyhome.com or download the official Ohmyhome app.
Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate Agents not only help in the shortlisting of options but also provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.