According to a study commissioned by Leechiu Property Consultants (LPC), demand for office space nationwide grew by 38 percent from 122,000 square meters (sqm) in the first quarter of 2021 to 169,000 sqm. in the second quarter.
As more Filipinos get vaccinated against Covid-19, there are now signs that the Philippine office market is on the way to recovery after the pandemic.
According to a study commissioned by Leechiu Property Consultants (LPC), demand for office space nationwide grew by 38 percent from 122,000 square meters (sqm) in the first quarter of 2021 to 169,000 sqm. in the second quarter.
As of the first half of 2021, demand is now at 291,000 sqm.
“This is already 75 percent of demand for the entire 2020. There is no doubt that the Philippines is back on the radar of global occupiers,” LPC chief executive officer David Leechiu said.
Even more significant is that the business process outsourcing (BPO) industry accounted for 92,000 sqm. or 54 percent of second quarter 2021 demand.
It grew by 160 percent from the first quarter’s 35,000 sqm. “driven by economic stability in the West.”
“Even if they were relatively quiet in 2020, BPOs are back,” Leechiu said. “The same fundamentals that attracted BPOs to the Philippines during the financial crisis of 2008 are once again working for us.”
The Philippine office market has been particularly hard-hit by the Covid-19 pandemic as restrictions on travel and movement of people forced many employees to adopt work-from-home schemes.
With the reopening of international borders, Philippine offshore gaming operators (POGOs) are expected to revive their interest in the Philippine office market and further prime the country’s economic recovery.
All these events have aligned to support the Philippine office market. Its resurgence this quarter is a strong and clear indicator of recovery, the study said. (ONT/With report from PNA)
Tags: #officespace, #economy, #realestate, #Covid19