Office demand in the Philippines picked up in 2022 as it surpassed the combined demand in 2 preceding years, according to the data from a consulting firm.
This year, office demand was at 975,000 square meters, higher than the 389,000 sqm in 2020 and 540,000 sqm in 2021, data from Leechiu Property Consultants showed.
Its CEO David Leechiu said the IT-BPM sector, which includes business process outsourcing, accounted for the majority of share in demand for the year.
“The IT-BPM sector continues to stabilize and anchor the economy, not only in Metro Manila but also in other key cities of the country. With traditional office occupiers now also enjoying recovery, real estate is likely to surpass its remaining obstacles in 2023,” he said.
The sector posted a 466,000 sqm demand as of mid-December, the group said. IT-BPM also hired about 265,000 employees in the last 3 years, Director for Commercial Leasing Mikko Barranda said.
“We can thus expect office demand from this sector to continue growing, moreso because IT-BPM industry studies estimate that 1.1 million more full-time employees will be hired in the next 6 years. This could mean, at the least, an additional annual 476,000 sqm of office space requirement up to 2028,” he said.
Meanwhile, traditional office occupiers posted a take-up of 448,000 sqm.
The growth comes despite the exit of Philippine Offshore Gaming Operators (POGOs) as well as the hybrid work arrangements.
Leechiu said growth is also likely to continue by 2023.
“Up to mid-2022, it was difficult to visualize year-end demand hitting close to the 1 million sqm mark. The results have exceeded expectations but we can’t put our guard down just yet,” he said.
