According to a report done by real estate advisory firm CB Richard Ellis (CBRE), the Philippines is Asia's most cost-effective location for outsourcing.
In terms of location with the lowest lease rates, Jakarta ranked first with $16.3, followed by the Philippines with $19.1 per square foot/annum. As for office rental yields in Asia for Q3 2011, India got 11 percent, followed by the Philippines at 10 percent.
CBRE chairman and CEO Rick Santos said the country has the most cost-effective real estate market in the region. For instance, compared to the Philippines, it is 12 times more expensive to get office space in Hong Kong and Singapore. Also, the continuous growth of the BPO industry contributes to the increase in demand for office space and services.
The country’s business process outsourcing (BPO) sector is expected to benefit from the global financial crisis that prompted US and Europe to increase offshore outsourcing activity.
The Philippines’ BPO office occupancy ranges from 250,000 to 350,000 square meters in the last five years and continues to expand because of the BPO sector’s demand for office space in Metro Manila.
Makati still offers the largest leasable BPO space with almost a million square meters, followed by Quezon City with 784,308 square meters. Majority of BPO office space in Quezon City are from Eastwood City, UP-Techno Hub, and Cubao.